wordpress blog stats
Connect with us

Hi, what are you looking for?

Q4-09: Idea Cellular Profit Down 6.42% YoY; Subs, Churn Up; ARPU, RPM Decline

idea

(By Nikhil Pahwa & Preethi J)

Idea Cellular has reported standalone revenues for Q4 of Rs. 28,626 million, up 9.22% quarter on quarter, and at Rs. 3.032 billion, a sequential increase in net profit of 18.35%. However, for the full year ended March 31st 2009, net profit was down 6.42% at Rs. 10.423 billion.

Total minutes on the network grew 9.9% on a quarter on quarter basis, and average rate per minute declined from Rs. 0.64 per minute to Rs. 0.63 per minute. 

Idea Cellular added 4.7 million subscribers in the quarter, its highest ever. Its subscriber base grew by 79.2 % during the fiscal, leading to a 47.9% growth in standalone revenues.  The company has said it plans to roll out in Tamil Nadu in the June 2009 quarter.

Details: Release | Financials | Quarterly Report

Advertisement. Scroll to continue reading.

q409-ideacellular-standalone1

Key Performance Indicators

The last quarter was something of an aberration for Idea cellular, wherein the company reported an increase in ARPU despite an increase in subscriber base. The trend, prior to this, has been a decline in the companys ARPU with subscriber base growth, and that trend has resumed since net additions tend to be at the lower end of the ARPU range.
 

q409-ideacellular-subscribers-arpu

Idea subscribers are talking less – the average minutes of use declined for the company. Added to this, the average revenue per minute also continues to decline. In the last quarter, both pre-paid and post-paid churn increased for Idea Cellular.

In its 8 established service areas, the company claims to have gained marketshare by 1% market share, and increasing its marketshare in the 3 gestating service areas to 6.3%, from 5.8% a year ago.

Idea also claims to have acquired a 4.0 % share of Bihar and Mumbai combined, with net-additions market share of 16.6%, during last 6 months.

q409-ideacellular-kpi1

Value Added Services

Unlike in the previous quartes, Idea Cellular has not disclosed the percentage of revenue from Value Added Services. We’ll update in case they are mentioned in the earnings conference call.

Advertisement. Scroll to continue reading.

 

Consolidated Results

For the quarter ended March 31st 2009, the company recorded a net profit of Rs. 2.74 billion, up 25% quarter on quarter, on a consolidated basis – this includes income proportionate to Idea’s holding in Spice Communications and Indus Towers. Year on year basis, profit declined 14% to Rs. 9.009 billion. Revenues grew 7% for the quarter, and on an annual basis, to Rs. 101.484 billion.

Key Corporate Developments

June ’08 – Providence Equity Partners invested $640 Mn in Aditya Birla Telecom
Aug ’08 – Idea Cellular and TMI acquired Spice Communications
Sep ’08 – Rolled out in Bihar and Jharkhand
Dec ’08 – Entered the PCO space, launched its first GSM PCO at Chandigarh. Announced plans to launch 5500 GSM integrated coin collection boxes by March 2009 in Punjab. Anounced plans to set up 27,000 retail outlets and launch a 1,200 Direct Sales team. Received spectrum for Kolkata.
Jan ’09 – Idea entered Punjab and Karnataka circles through Spice
Feb ’09 – Launched wireless broadband Plug & Play ‘NetSetter’ in Karnataka
Apr ’09Rolled out in Orissa. Received spectrum for Assam, Northeast, Jammu & Kashmir and West Bengal.

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 DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

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...

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

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...

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