Losses continue to mount for Vodafone Idea as telco loses more than 20 million subs

Indian telco Vodafone Idea has recorded its worst quarter for revenue in more than two years.

Revenue for the second quarter of the year fell from INR 106.59 billion (€1.22 billion) to INR91.52 billion (€1.05 billion) year-over-year. The operator also lost more than 20 million subscribers during that time, dropping from 279.8 million customers to 255.4 million. 

The revenue loss of INR 73.19 billion (€840 million) was larger than analyst forecasted losses of INR 65.01 billion (€740 million).

In a statement, the joint venture between UK operator Vodafone and Idea Cellular blamed the decline on the impact of the Covid-19 pandemic.

Amid the impact of the pandemic and facing INR 500 billion (€5.72 billion) in debt to the Indian government, the company’s billionaire non-executive chairman Kumar Mangalam Birla last week announced his resignation. The company’s stock has also dropped by more than 40% in 2021. 

Vodafone Idea said that it “is currently in active discussion with potential investors” over ways of alleviating its debts.