Vi Cuts Net Loss To Rs 6.4K Crore; Logs First Post-merger Revenue Rise

Vodafone Idea (Vi) reported a consolidated net loss to Rs 6,418 crore in Q4 FY23 on a year-on-year basis on the back of an increase in operating expenses.

The net loss was however 2.2 per cent lower on a year-on-year basis due to revenue growth and an increase in 4G customers. In the same period last year, the company had posted a net loss of Rs 6,563 crore.

On a sequential basis, the net loss reduced by 19.6 per cent. In the third quarter of FY23, Vi had posted a net loss of Rs 7,990 crore.

Gross revenue in the fourth quarter of FY23 increased by 2.8 per cent YoY to Rs 10,531 crore while earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 9.4 per cent to Rs 4,210 crore. Operating expenses rose 13 per cent to Rs 6,321 crore on a year-on-year basis.

Average revenue per user (ARPU) remained flat at Rs 135 on a sequential basis and rose 8.8 per cent on a year-on-year basis.

The company lost 2.7 million subscribers sequentially and its user base stood at 225.9 million at the end of the second quarter.

However, the 4G customer count grew by a million sequentially to 122.6 million.    

Vi has been struggling operationally and financially and previous rating downgrades have resulted in an increase in finance costs.

Rival firms Bharti Airtel and Reliance Jio are ramping up their 5G network while Vi is yet to finalise its deal with telecom gear makers for equipment. Planned fund raising for network expansion too has not materialised.

In a statement, Vi’s chief executive officer Akshaya Moondra said, “We are pleased to report annual revenue growth for the first time post –merger on the back of consistently improving performance for last several quarters. Our annual revenue and EBITDA grew by 9.5 per cent and 24.1 per cent respectively compared to last financial year. We continue to see growth in ARPU and 4G subscribers.  We continue to 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 rollout.”