Jobaaj Stories
Debt-ridden telecom operator Vodafone-Idea reported a decline in its losses for the quarter ending in March 2022 as it saw a significant improvement in its ARPU.
The company's losses for this quarter stood at Rs 6,563.1 crores as opposed to Rs 7,023 crores last year, reporting a 6.55% contraction in losses. Its revenues grew 6.6% YoY to Rs 10,239.5 crores. Sequentially, the revenues were up 5.4%, supported by tariff hikes effective from November 2021.
The Average Revenue Per User (ARPU) rose 7.8%, from Rs 115 per user last quarter to Rs 124, even though the subscriber base of the telecom declined to 243.8 million due to the tariff hikes.
“We are pleased to announce the third consecutive quarter of revenue growth driven by tariff interventions taken in November 2021. While the overall subscriber base has been impacted primarily on account of the tariff increase, the 4G subscriber base continued to grow on the back of superior data and voice experience…” said Vodafone Idea CEO Ravinder Takkar.
For the full year FY22, the losses narrowed sharply to Rs 28,245.4 crore, from Rs 44,233.1 crore in the previous financial year. Revenue from operations for the year ended March 2022 came in at Rs 38,515.5 crore.
The stock of Vodafone Idea has seen some bad days in 2022. The stock witnessed a staggering decline of 20.54% when its Board converted all of its interest, due to the Government, into equity shares, making the government its largest shareholder. Since April, the stock has been in constant decline with a few days of relief. The stock has declined 19.35% since April 2022 as it currently trades at around Rs 8.80 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
