Vodafone Idea Q1 Results | Net loss widens to Rs 7,840 crore, revenue up 2%; ARPU at Rs 139
Vodafone Idea, a telecom company, has obtained Rs 2,000 crore to meet its financial obligations while witnessing a widened loss in Q1. As of June 30, 2023, the company’s gross debt totaled Rs 2.11 lakh crore. The Average Revenue Per User (ARPU) increased from Rs 128 a year ago to Rs 139 in the June quarter. However, the subscriber base declined from 24 crore to 22.14 crore during the same period.
The company secured a commitment from a shareholder to provide the financial support, aiming to address its payment responsibilities. This comes as the company’s gross debt includes deferred spectrum payment obligations and adjusted gross revenue dues. Furthermore, Vodafone Idea has proposed to pay a spectrum auction installment of Rs 1,680 crore with interest, using a 30-day grace period.
Despite these efforts, Vodafone Idea reported a wider loss in the first quarter due to sluggish 4G subscriber growth and increased expenses. The company’s consolidated loss after tax for the quarter was Rs 7,840 crore, compared to Rs 7,297 crore the previous year. The loss was attributed to weak subscriber growth and higher expenditures. In response, the company is exploring potential debt fundraising and equity-linked options to support network expansion, including the rollout of 5G technology.
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