Vodafone Idea Q3 results: Net loss narrows to Rs 6,985 crore, ARPU rises to Rs 145

Telecom firm Vodafone Idea Ltd on Monday reported that its net loss narrowed to Rs 6,985 crore for the quarter ending December 31, 2023, as against Rs 7,990 crore net loss in the same period a year ago. The average revenue per user (ARPU) of the company grew 7.5 per cent year-on-year to Rs 145 during the period from Rs 135 in Q3FY23.

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The telecom firm's 4G subscriber base increased to 125.6 million in the December quarter from 121.6 million in Q3FY23. EBITDA for the quarter grew by 6.8 per cent on YoY basis from Rs 2,000 crore in Q3FY23 to Rs 2,140 crore - the highest in the last 11 quarters. 4G subscriber base increased to 12.55 crore vs 12.10 crore in Q3FY23.

Vodafone Idea Limited CEO Akshaya Moondra said “We are pleased to report highest EBITDA (pre-IndAS 116) of Rs. 21.4 billion in the last 11 quarters. In line with the evolving industry landscape and changing customer needs, we have revamped our offerings as well as focusing on our execution to effectively compete in the market. Resultantly, we are able to grow our 4G subscribers and ARPUs consecutively for last 10 quarters. We remain engaged with various parties for fundraising, to make required investments for network expansion, including 5G rollout.”

The revenue for the quarter stood at Rs 10,670 crore, a YoY improvement of 0.5 per cent aided by improving subscriber mix, 4G subscriber additions, and change in entry-level plan. On a reported basis, EBITDA for the quarter grew by 4.1 per cent on YoY basis from Rs. 4180 crore in Q3FY23 to Rs 4350 crore and EBITDA margin for the quarter was 40.8 per cent.

Vodafone Idea's total gross debt (excluding lease liabilities and including interest accrued but not due) as of December 31, 2023, stood at nearly Rs 2.15 lakh crore, which comprised deferred spectrum payment obligations of Rs 1.38 lakh crore and AGR liability of Rs 69,020 crore.

On Monday, shares of Vodafone Idea traded flat and ended at Rs 14.70 on the BSE.