Vodafone Idea Q2 loss narrows
Shares of Vodafone Idea (Vi) rallied more than 4% Friday after the telecom major reported significant narrowing of losses in the quarter ended September and said signs of recovery were visible with gradual improvement in economic activities.
Vi reported a net loss of Rs 7,218 crore for the September quarter, its ninth straight quarterly loss. Its losses in Q2 FY20 had been at a staggering Rs 50,921.9 crore after it provisioned for Supreme Court mandated statutory dues.
Average revenue per user (ARPU) increased to Rs 119 in Q2FY21 from Rs 107 in Q2FY20. It stood at Rs 114 in the preceding quarter.
It’s revenue grew 1.2% QoQ as economic activities have gradually started to resume, while subscriber base declined to 271.8 million in Q2 as compared to 279.8 million in Q1.
However, the woes of cash-strapped Vodafone Idea are far from over as a declining subscriber base, wafer-thin industry margins amid an ongoing tariff war and huge dues weigh heavily.
Meanwhile, Vi has emerged as the fastest mobile operator over 4G in India in the third quarter of this year, while Jio led the list of 4G availability among top service providers, according to a report by network analyst firm Ookla. As per the report, data speeds vary among the largest cities in the country, and Hyderabad was found to have the fastest download experience over mobile networks in the third quarter. Ookla noted that the average download speeds over mobile networks in the country saw an year-over-year increase of 11.6%.
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