Voda Idea net loss declines to Rs 7,022 cr on lower exceptional expenses
Vodafone Idea (Vi) cut down its net loss by 39.5 per cent to Rs 7,022 crore in the fourth quarter FY 2021 on a year-on-year basis on the back of lower exceptional expenses. In the same quarter last year, it had posted a net loss of Rs 11,643 crore.
The company managed to trim subscriber loss to two million in the fourth quarter on a sequential basis but it lagged peers in other parameters such as average revenue per user (ARPU). The company is yet to close its fundraising said it is in active discussions with potential investors.
Revenue from operations declined by 18.2 per cent on a year-on-year basis to Rs 9,607 crore as against Rs 11,754 crore owing to discontinuation of interconnect usage charges (IUC).
Telecom companies used to pay an IUC of six paise per minute for calls made from their network to other service providers this was discontinued from January 1 on orders of telecom sector regulator.
This led to a drop in revenue ARPU for the company both on a sequential year-on-year basis. ARPU declined 11.5 per cent sequentially to Rs 107.
The telecom company’s fourth-quarter FY 21 result was positively impacted due to lower exceptional expenses. While the company had incurred exceptional expenses of Rs 6,140 crore in the fourth quarter of last fiscal that reduced to Rs 974 crore in the fourth quarter of FY 21.
Ravinder Takkar, MD & CEO, Vodafone Idea Limited, said, “FY21 has been a transformational year for Vodafone Idea with several important milestones achieved including the launch of our unified br“Vi”. In the year of the pandemic, when people businesses were hugely dependent on telecom connectivity, we delivered superior network experience improvement in several operating metrics supported by Vi GIGAnet, which remains the fastest 4G network in India, as per Ookla, as well as the network with highest rated voice quality as per TRAI. We enter FY22 with renewed focus on executing our strategy to keep our customers ahead, our cost optimization plan remains on track to deliver the targeted savings. We are in active discussion with potential investors for fund raising, to achieve our strategic intent.”