Tariff war: Vodafone Idea Q3 loss breaches Rs 5K crore

Chennai: Country’s largest telecom operator, by subscribers, Vodafone Idea Ltd’s consolidated net loss widened marginally in the third quarter to Rs 5,004.6 crore as opposed to Rs 4,973.8 crore in the preceding quarter, a drop of 2,2 per cent.

Due to a brutal tariff war with Reliance Jio Infocomm Ltd, the firm which is also India’s largest telco by revenue saw losses in what was its first full-quarter results post completion of the merger of Vodafone India and Idea Cellular on 31 August last year.

The firm posted a consolidated revenue of Rs 11,764.8 crore. It beat the competition on this metric, as revenue from Bharti Airtel Ltd’s India mobile business was Rs 10,053 crore, while Reliance Jio generated Rs 10,383 crore in operating revenue last quarter.

Vodafone Idea’s earnings before interest, taxes, depreciation and amortization (EBITDA) from wireless operations in India grew 16 per cent quarter-on-quarter to Rs 1,136.8 crore, but is still the lowest among all operators as Jio posted an EBITDA of Rs 4,053 crore, while Airtel recorded Rs 1,949.8 crore.

Average revenue per user (ARPU) for the company was also the lowest among the three operators at Rs 89. Airtel had garnered Rs 104 and Jio had the most at Rs 130.

The positive was that Vodafone Idea’s average monthly data usage per data subscriber improved to 6.2GB in the December quarter as well as the addition of 9.5 million 4G subscribers last quarter.

NT Bureau