Vodafone Idea posts loss of Rs 5,005 cr in Oct-Dec
Telecom operator Vodafone Idea on Wednesday reported a consolidated loss of Rs 5,005.7 crore for the third quarter of 2018-19 on account of high finance cost, network integration cost and mobile tower exit charges.
The books of Vodafone Idea recorded a comprehensive loss of Rs 1,284.5 crore in the same quarter a year ago. However, the results are not comparable as the merger between Vodafone and Idea completed on August 31, 2018.
The company's finance cost during the quarter stood at Rs 2,824 crore and recognised a provision of Rs 725 crore towards exit charges from mobile towers to be paid to different vendors.
Total income of Vodafone Idea stood at Rs 11,982.8 core during the reported quarter.
"The initiatives taken during the quarter started showing encouraging trends by the end of the quarter. We are moving faster than expected on integration, specifically on the network front, and we are well on track to deliver our synergy targets," Vodafone Idea CEO Balesh Sharma said.
Vodafone Idea reported an EBIDTA of Rs 1,136.8 crore for the third quarter of 2018-19 and a higher margin of 9.7 per cent against 6 per cent in the previous quarter.
The company during the quarter added added 11,123 sites for 4G services covering 75 crore population.
"We remain focused on fortifying our position in key districts by expanding the coverage and capacity of our 4G network, and target a higher share of new 4G customers, while offering an enhanced network experience to our customers. The proceeds from the announced capital raise will put us in a strong position to achieve our strategic goals, Sharma said.
The company added 95 lakh new 4G subscribers taking its total 4G subscriber base to 7.53 crore inching closer to its peer Bharti Airtel which reported 4G customer base of 7.7 crore. Average revenue per user on Vodafone Idea network grew 1.5 per cent on quarterly basis to Rs 89.
The data usage on Vodafone Idea network per subscriber increased to 6.2 GB in the reported quarter from 5.6 GB in previous quarter. Vodafone Idea competitors Reliance Jio and Airtel have reported consumption of 10.8 GB and 10.2 GB per person on mobile networks in October-December 2018.
The total debt of Vodafone Idea stood at Rs 1,23,660 crore at the end of December 31, 2018.
The company is in process to sell 11.15 per cent stake in Indus Towers, which currently has an estimated value of Rs 4,960 crore, and is evaluating to sell 1.58 lakh kilometer of optical fibre network to raise fund for lowering debt.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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