Vodafone Idea Limited’s (Vi) net loss widened to Rs 78.37 billion in the quarter ended (QE) June 30, 2023 as against Rs 64.14 billion in the previous quarter. The company’s revenue increased 1.2 per cent quarter-on-quarter (QoQ) to Rs 106.55 billion as compared to Rs 105.31 billion in the previous quarter, driven by improving subscriber mix and 4G subscriber additions.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter was Rs 41.57 billion and EBITDA margins at 39 per cent. EBITDA excluding IndAS116 impact was at Rs 20.2 billion compared to Rs 20.7 billion in the previous quarter, primarily due to higher network expenses and customer acquisition cost partially offset by the reduction in roaming and access charges. Capex spend for the quarter stood at Rs 4.5 billion.

Meanwhile, the total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 2023 stood at Rs 2.19 trillion comprising of deferred spectrum payment obligations of Rs 1.34 trillion and adjusted gross revenue (AGR) liability of Rs 668.6 billion that are due to the government, debt from banks and financial institutions of Rs 95 billion and optionally convertible debentures amounting to Rs 16.6 billion. With cash and cash equivalents of Rs 2.5 billion, the net debt stood at Rs 2.12 trillion. The debt from banks and financial institution has reduced by Rs 57 billion during the last one year.

Further, the 4G subscriber base continued to grow for the eighth consecutive quarter and stood at 122.9 as on June 30, 2023 as compared to 122.6 million in the previous quarter. However, the overall subscriber base declined to 221.4 million from 225.9 million in the last quarter. Average revenue per user (ARPU) improved to Rs 139, up 2.9 per cent QoQ from Rs 135 in the last quarter, primarily aided by migration of subscribers to higher ARPU plans. The telco continued to see high data usage per broadband customer at around 15.7 GB/month with the total data traffic for the quarter witnessing QoQ growth of 3.5 per cent.

Commenting on the results, Akshaya Moondra, chief executive officer, Vi, said “The eighth consecutive quarter of growth in average daily revenue, ARPU and 4G subscribers, clearly reflects our ability to effectively operate and compete in the market. Recently, we launched ‘Vi One’, a converged offering bundling mobility, broadband and content under a single plan bringing convenience and value to the consumers; an industry first in prepaid space. We remain engaged with our lenders for further debt fund raising as well as with other parties for equity or equity linked fund raising, to make required investments for network expansion, including 5G roll-out.”