wordpress blog stats
Connect with us

Hi, what are you looking for?

Q2-09: Idea Cellular Profit Down 45% QoQ; VAS Revenues Up 15.5% To Rs. 233.11 Crores

Idea Cellular reported a 45.24 percent decline in net profits, down to Rs 144.1 crores, down from Rs 263.1 crores last quarter. The company has said that the reduction of Rs 119 crores in net profits is mainly attributable to EBITDA contraction of Rs 113.5 crores, and an increase in Depreciation & Amortization by Rs 28.3 crores. EBITDA margins declined to 26.3 percent, from 33.1 percent. During this quarter, revenues grew by 5.8 % over the quarter ended June 30, 2008, and stood at Rs 2303.7 crores.

The most significant development at Idea Cellular in quarter two last year, was the addition of a new circle of operation – they launched GSM services in Mumbai. This means that Idea Cellular operates in 12 of the 22 circles in India.

VAS Revenues & APRU
Monthly VAS Revenues for Idea Cellular increased significantly this quarter – to 9.8 percent of ARPU (Average Revenue Per User), up from 8.9 percent of ARPU last quarter. That takes the quarterly VAS revenues – including SMS revenues – to Rs. 233.11 crores. While VAS revenues are up 15.49% in percentage terms, the ARPU itself has declined by 6.11 percent to 261 from 278. We’re comparing numbers quarter on quarter, and not year-on-year because of the impact of the quarter-on-quarter growth in subscriber base that have an impact on revenues.


Minutes of Use
The Average Minutes of Use (MOU) declined to 417 minutes/user, down from 428 minutes last quarter. Remember that last quarter the minutes of use had shown a significant increase in usage.

Subscriber Addition And Churn
Idea Cellular added 3.186 million subscribers during the quarter, marginally down from 3.19 million additions last quarter. Interestingly, 96.8% of these were prepaid, which means that more post-paid subscribers were added in Q2. Historically, post-paid subscribers have contributed a higher APRU, so the pre-paid subs added have contributed even less ARPU.

Churn was more or less static: down 3.9 percent overall as compared to 4 percent last quarter; there was a decline in prepaid churn of 4 percent from 4.1 percent last quarter, while post-paid churn remained the same at 2.5 percent.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

News

Releasing the policy is akin to putting the proverbial 'cart before the horse'.

News

The industry's growth is being weighed down by taxation and legal uncertainty.

News

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ