Vodafone Idea has announced the financial results for quarter ended September 2020.
The company’s loss narrowed down to Rs 72. 18 billion during the quarter from Rs 254.6 billion in Q1 FY21. Revenue for the quarter stood at Rs 107.9 billion, a growth of 1.2 per cent quarter-on-quarter (QoQ), as economic activities have gradually started to resume. On reported basis, earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was Rs 41.5 billion.
Further, EBITDA excluding IndAS 116 impact was up 5.9 per cent QoQ at Rs 16.3 billion, after adjusting for one-off of Rs 3 billion, on account of higher revenue and cost savings, but partially offset by higher subscriber acquisition costs as gross additions, which were impacted by closure of outlets during peak of lockdown, improved this quarter. The EBITDA margin, excluding IndAS 116 impact and adjusted for one-offs, improved to 15.1 per cent vs 14.4 per cent in first quarter (Q1) FY21. Capex spend in Q2FY21 of Rs 10.4 billion, improved compared to Rs 6.0 billion in Q1FY21.
Gross debt (excluding lease liabilities) as of September 30, 2020 was Rs 1,159.4 billion, including deferred spectrum payment obligations due to the Government of Rs 923.1 billion. Cash and cash equivalents were Rs 14.3 billion and net debt stood at Rs 1,145.1 billion.
Announcing the Q2 FY21 results, Ravinder Takkar, managing director and chief executive officer, Vodafone Idea Limited, said, “As we reach the end of our integration journey, we have become the fastest and most consistent 4G network of India, as validated by Ookla, a testimony to our superior and improved 4G GIGAnet network covering 1 billion Indians. We have launched our new unified brand “Vi”, built on the legacy of two of the most loved brands of the country, and are all set to regain customer mind share. 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. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces.”
The subscriber base declined to 271.8 million in Q2FY21 from 279.8 million in Q1FY21. However, the gross additions improved with gradual reopening of retail stores. The subscriber churn increased to 2.6 per cent, as the market activity increased during the quarter with lifting up of restrictions. Average revenue per user (ARPU) for Q2FY21 improved to Rs 119 compared to Rs 114 in Q1FY21.
At the end of the quarter, the 4G subscriber base stands at 106.1 million. The data volumes declined by 4.0 per cent QoQ, as data usage normalised compared to the significantly higher volumes witnessed during the early months of lockdown. Total minutes on the network declined by 4.0 per cent during the quarter.