Vodafone (NASDAQ:VOD) Idea (VIL) has reported a widening of its Q2 net loss to Rs 8,737.9 crore ($1.17 billion), largely attributable to an Rs 822 crore ($110.5 million) tax liability provision following a Supreme Court judgement. The company's six-month loss stands at Rs 16,566.7 crore ($2.23 billion), with a negative net worth of Rs 90,411.1 crore ($12.15 billion) and net working capital at negative Rs 17,538.6 crore ($2.36 billion).
Despite nearly unchanged consolidated revenue from operations at Rs 10,716.3 crore ($1.44 billion), the average revenue per user (ARPU) grew by 2.1% to Rs 142 ($1.91), driven by an increase in 4G subscriber additions. However, VIL saw a decline in its total subscriber base by about 6% to 21.98 crore (219.8 million).
The company's total external debt as of the end of Q2 stands at Rs 2,12,784.6 crore ($28.62 billion), which includes deferred spectrum payment obligations of Rs 1,35,130 crore ($18.16 billion), adjusted gross revenue (AGR) liability of Rs 68,180 crore ($9.17 billion), bank debts worth Rs 7,860 crore ($1.06 billion), and optionally convertible debentures of Rs 1,610 crore ($216 million). The debt payable by September 2024 is Rs 7,174 crore ($965 million).
In a move to expand its network, including a potential 5G rollout, VIL is currently undertaking equity-linked fundraising activities. The company also converted government dues of Rs 16,333 ($2.2 billion) into a 33.44% equity stake.
The average data usage per 4G subscriber increased marginally to 15.8 GB during the September quarter, reflecting the growing demand for data services among its subscribers.
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