By Telecom Lead Team: Idea
Cellular has posted 27.17 percent increase in revenue in Q3 FY 2011-12 at Rs
5,030.82 crore as compared with Rs 3,955.61 crore in the corresponding quarter
in previous year.
Its
net profit plummeted 17.31 percent to Rs 200.98 crore in the third quarter of
current fiscal from Rs 243.05 crore in the same quarter last fiscal.
Sequential
quarterly revenue growth was 8.8 percent. Revenue growth is led by seasonal
return of minute’s growth to 114 billion, a growth of 7.3 percent, compared to
Q2 FY12. The minutes volume expansion was supported by 7.5 million net VLR
subscriber additions during Q3 FY12 against 3.2 million in Q2FY12.
Idea
has the highest active subscriber ratio of 92.3 percent as per TRAI. The
company maintains the upward trend of Average Realisation Per Minute (ARPM)
from 42.7p in Q2 FY12 to 43.3p in Q3 FY12.
VAS
contribution increased to 13.7 percent in Q3 FY12 from 13.2 percent in Q2 FY12.
Mobility
revenue in Q3 was Rs 4,992.4 crore as compared with Rs 3,928.09 crore in Q3 FY
2010-11. ILD revenue grew to Rs 63.73 crore from Rs 48.15 crore.
Idea
Cellular’s nine-months revenue grew 25.76 percent to Rs 14,171 crore.
Company’s
3G investment plans are on track and high speed broadband services are now
available across 2,300 towns in 20 service areas (including roaming
arrangements) in India.
This
quarter company introduced affordable Idea branded 3G Smart-phones starting
from Rs. 5,850 onwards thereby helping Idea’s 106 million subscribers to move
to the new exciting digital age.
Idea
Cellular has improved its competitive standing to 14 percent revenue market
share and extended its MNP leadership with net gain of 2.2 million customers
(as on 14th January, 2012) from other existing operators.
The
company is confident to overcome the current uncertain regulatory phase, emerge
stronger, consolidate its position in telecom voice market and participate
aggressively in evolving wireless broadband business,” Idea Cellular said in a
press release.
According to
Reuters,
this was the company’s third-straight quarter of declining profits, weighed
down by costs over its 3G network investments, foreign exchanges losses and as
tax provisions jumped.
Idea, about
a fifth owned by Malaysia’s Axiata, has outpaced bigger rivals Bharti Airtel,
Reliance Communications and Vodafone’s Indian unit, in monthly susbcriber
additions in five straight months to December, helping drive revenue growth.
