Vodafone Idea (Vi) on Saturday reported a net loss of Rs 4,532 crore in the third quarter of Financial Year 2021. The company's revenue for the quarter improved to Rs 108.9 billion, a growth of 1.0% QoQ, supported by higher 4G additions.
The company claimed that it had obtained approval from the Board for raising funds up to Rs. 250 billion through a combination of debt and equity; currently in active negotiations with prospective buyers.
Commenting on the results, Ravinder Takkar, MD & CEO, Vodafone Idea Limited, said "In Q3FY21, we improved subscriber retention and operating performance, supported by Vi GIGAnet, which remains the fastest 4G network in India, as per Ookla as well the network with highest rated voice quality as per TRAI - a testimony to our superior network. We remain focused on executing our strategy, and our cost optimization plan remains on track to deliver the targeted savings. The Board has approved funds raising to support our strategic intent and we are in active discussions with potential investors."
Earnings before interest tax depreciation and amortization (EBIDTA), EBITDA for the quarter was Rs. 42.9 billion, with EBITDA margins at 39.3% vs 38.5% in Q2FY21.
EBITDA has had a positive effect due to the amortization of subscriber acquisition costs over the estimated anticipated life of the consumer.
The result was supported by the extraordinary revenue of Rs 2118 crore from the selling of the company's 11.5% interest in Indus Towers, a telecom tower company.
The average revenue per user (ARPU) increased to Rs 121 during Q3FY21, from Rs109 in the September quarter.
On 31 August 2020, Vodafone Idea and other parties (Vodafone Group, Bharti Airtel, Indus Towers and Bharti Infratel) decided to proceed with the merger of Indus-Infratel.
Earlier, on September 07, 2020, the corporation launched the unified brand 'Vi' on the back of the world's biggest merger, which has several unique offerings.