Vodafone Idea posts loss at Rs 7,218 crore, revenue dips on subscriber losses

NEW DELHI:  Telecom major Vodafone Idea saw its losses contract both on a quarter-on-quarter and year-on-year basis during the second quarter (Q2FY21), while total revenues dipped slightly compared to the previous year and recorded a 1.2 per cent rise from Q1FY21. 

While there were no extra provisions towards AGR liabilities during the quarter, the telco continued to lose subscribers and its average revenue per user (ARPU) has risen marginally. According to the company,its consolidated net loss during the quarter stood at Rs 7,218.2 crore, against a loss of Rs 50,922 crore in Q2 of the previous year and a loss of Rs 25,460 crore in Q1 of the current fiscal. 

Revenues were marginally lower at Rs 10,791.2 crore compared to Rs 10,844 crore the previous year. However, the rise in economic activity post lockdowns helped boost revenue slightly higher than the Rs 10,659.3 crore recorded in the previous quarter.

“While we continue to face Covid-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimisation exercise has already started to yield incremental savings. 

We have also initiated a fund raising exercise to support our strategic intent,” said Ravinder Takkar, MD & CEO, Vodafone Idea Limited. As for key metrics such as ARPU and subscriber base, VIL has fared worse than rivals Bharti Airtel and Reliance Jio. It bled subscribers during the quarter, though at a slower rate.