\tVodafone Idea posted its third consecutive quarterly net loss in the opening period of its fiscal year 2020, as subscriber numbers fell below those reported by rival Reliance Jio.<\/p>\n
During its fiscal Q1, Vodafone Idea lost 14.1 million subscribers, leaving it with a base of 320 million.<\/p>\n
As Reliance Jio declared 331 million subscribers [1] by end-June, unless Bharti Airtel has made significant gains when it reports on 1 August, Reliance Jio will become the largest operator in the market by the metric.<\/p>\n
Losses
\nYear-on-year comparisons are not yet available for Vodafone Idea, which was formed in August 2018 [2], but it has slightly narrowed its losses with each passing quarter.<\/p>\n
In the three months to end-June, it posted a loss of INR48.7 billion ($708 million), down from an INR50 billion loss in its fiscal Q3 2019 and INR48.8 billion in fiscal Q4.<\/p>\n
Revenue for the recent period was INR113 billion, down from INR117.7 billion in its two previous quarters.<\/p>\n
The company blamed its performance on customer churn and \u201ccontinued down trading of high ARPU customers\u201d.<\/p>\n
On a more positive note, Vodafone Idea pointed to the success of the ongoing integration of assets and operations from constituent companies Vodafone India and Idea Cellular.<\/p>\n
The associated cost synergy programme is said to be on track to meet a target of reducing annual opex by INR84 billion by end-June 2020. In addition to cost savings, by combining network assets it expects consumers to be able to access greater coverage and capacity.<\/p>\n
In its results statement, it added: \u201cWe believe the improved data speeds will lead to superior customer experience and perception, which should benefit our subscriber additions over time.\u201d<\/p>\n[1] https:\/\/www.mobileworldlive.com\/asia\/asia-news\/jio-profit-soars-on-continued-sub-gains\/
\n[2] https:\/\/www.mobileworldlive.com\/asia\/vodafone-idea-seal-deal-to-create-india-market-leader\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Vodafone Idea posted its third consecutive quarterly net loss in the opening period of its …<\/p>\n
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