Mon Nov 18 23:37:26 UTC 2024: ## Vodafone Idea Posts Q2 Loss, but Shows Revenue Growth and Network Expansion

**MUMBAI, INDIA –** Vodafone Idea (Vi) reported a net loss of Rs 7,176 crore (approximately $870 million USD) for the second quarter of fiscal year 2025, although this represents a slight improvement on the previous quarter’s loss of Rs 6,432 crore. The telecom giant attributed this to a recent tariff revision in July, which contributed to a 4 percent quarter-over-quarter revenue increase, reaching Rs 10,932 crore. Year-on-year revenue growth was a more modest 2 percent.

Despite the loss, Vi saw positive indicators. Average revenue per user (ARPU) excluding machine-to-machine connections (M2M) rose 7.8 percent sequentially to Rs 166, driven by the tariff hike. EBITDA also increased to Rs 4,550 crore, up from Rs 4,283 crore in the same quarter last year.

The company’s total subscriber base decreased slightly to 205 million, impacted by the tariff increases. However, Vi noted growth in its postpaid customer base, both year-on-year and quarter-over-quarter.

Vi’s debt reduction efforts have also shown progress, with bank and financial institution debt falling by Rs 4,580 crore over the past year to Rs 3,250 crore. The company holds a cash and bank balance of Rs 13,620 crore. Government payment obligations, however, remain substantial at Rs 2,12,260 crore.

CEO Akshaya Moondra highlighted significant investments in network expansion. Vi finalized long-term capital expenditure (CAPEX) contracts worth $3.6 billion with Nokia, Ericsson, and Samsung, for network equipment over the next three years. The company added a record 42,000 4G sites in the quarter, expanding 4G capacity by 14 percent and coverage by 22 million people. Vi is targeting 4G population coverage of 1.1 billion by March 2025 and 1.2 billion by September 2025, with 5G rollout to begin in key areas by the fourth quarter of FY25.

While acknowledging the need for further tariff rationalization, Moondra stated that the impact of recent price adjustments is already visible in improved ARPUs and revenue, with a fuller effect expected in the coming quarters. The company also shut down around 19,700 3G sites as part of its network modernization strategy.

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