Vodafone Idea reported a consolidated net loss of Rs 6,438.8 crore for the quarter ended December 31, 2019, its sixth consecutive quartely loss. It had registered net loss of Rs 5,004.6 crore in the corresponding quarter last year, the telecom operator said in a filing to the stock exchanges on Thursday.
Vodafone Idea's gross revenue slipped to Rs 11,089.4 crore in the quarter under review, as compared to Rs 11,764.8 crore in the year-ago period. Meanwhile, operational expenses came down to Rs 7,668.9 crore from Rs 10,601.6 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew sharply to Rs 3,420.5 crore during Q3 FY20, as compared to Rs 1,163.1 crore in Q3 FY19. EBITDA margin also rose to 30.8 per cent during the quarter under review, from 9.9 per cent in the same quarter last fiscal.
For the quarter ended December 31, 2019, Vodafone Idea claimed to command a subscriber base of 304 million, down from 387.2 million for the same period last year. However, the company saw its average revenue per user (ARPU) increase to Rs 109 from Rs 89, "supported by improved consumer mix".
Vodafone Idea, similar to the rest of the telecom industry, had a rough December quarter this fiscal due to the fallout of a Supreme Court verdict on adjusted gross revenue (AGR). Vodafone Idea is yet to pay its dues in the case, as the company is waiting for Department of Telecommunications to decide on a schedule of payments and other reliefs.
"We had accounted for the estimated liability of Rs 44,150 crore related to License Fee and Spectrum Usage Charges in the previous quarter... all taken for periods up to September 30, 2019 and adjusted for certain computational errors. While continuing to recognize the liability in the same manner, the company, during this quarter, adjusted the estimated liability for subsequent demands received, errors in computation, applicable interest for this quarter, payments made in the past not considered in the DoT demands, and consequential adjustments on satisfaction of contractual conditions under a mechanism with Vodafone Group," Vodafone Idea said in its statement.
"Accordingly, the net impact of these effects amounting to Rs 52.8 crore has been recognised as Exceptional Items during the quarter. Further, as directed by DoT, the company is undertaking a self- assessment exercise for computation of liability as per the AGR Judgment," the company further added.
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