The contribution of Mobile Value Added Services (including P2P SMS) to Idea Cellular‘s revenues has increased` quarter on quarter at 13.2%, for the three month period ending 30th September 2011 (Q2-FY12), an increase compared to 12.9% reported for Q2-FY11.
The company has reported a decline in its ARPU at Rs 155, from Rs 160 reported last quarter.
– Minutes of Use: the total number of minutes on network decreased to 106.2 billion from 108.63 billion: down 2.2% QoQ, but an increase compared to Q2-FY11’s 84.8 billion minutes.
– Average Rate Realized: increased to Rs 0.427 from Rs 0.410, and the cost per minute increased compared to the previous quarter. This, according to the company, resulted in expansion of margin between ARR and Cost/Minute to 8.9p compared to 8.0p in previous quarter.
Other Operational Stats
– Average minutes of use per customer declined to 364 minutes
– Connection base: grew to 100.2 million. As of 31stAug’11, Idea claims to have over 91% of reported subscribers as VLR subscribers (active), which is highest in the industry
– Prepaid subscribers: 96.5% of total, remained stable
– Average Minutes of Use per user (MoU): 364, down from 391 last quarter
– Cell sites: EoP cell sites – 78,367, up from 76,291 at the end of the last quarter
– Minutes on Network increased by 9%, while Standalone Revenue expanded by 7%, on a sequential quarterly basis.
– MNP: Idea claims it had a net gain of over 1.3 million subscribers (as on 16th October, 2011) and lowest port-out ratio of only 61 subscribers against every 100 subscribers.
– 3G: Idea currently offers 3G services in 20 service areas (excluding Orissa and Punjab), through a
combination of home network and roaming arrangements.
– Seasonally Subdued quarter: According to the company, with the increasing proportion of rural subscribers, the market weakness in the second quarter has become more pronounced, resulting in 2.2% of sequential quarterly revenue growth after high growth of 6.7% and 7.0% in the previous two quarters.
Sequentially, consolidated profit for Idea declined to Rs 105.8 crore from Rs 177.26 crore last quarter, while gross revenue increased to Rs 4619.9 crore from Rs 4520.72 crore last quarter. Mobility segment revenues were Rs 4554.63 crore, Long distance telephony revenues were Rs 61.54 crore.
On a standalone basis, profit after tax for the quarter stands at Rs 79.3 crore, down from Rs 154.1 crore last quarter on account of net high interest & finance cost of Rs. 253.8 crore, including Rs. 31.3 crore of forex loss. It reported revenues of Rs 4655.4 crore, up from Rs 4555.9 last quarter.
The company say its standalone EBITDA margin compressed by 1% on a QoQ basis to 22.4%, primarily due to higher manpower cost(annual increment) and network expenses.
The Net Debt for the company stands at Rs. 11,200 crore as on 30th September, 2011, and the Net Debt – Equity ratio is at 0.89.
Spice-Idea Cellular Merger Case
Idea’s appeal before the Appellate Bench of the Delhi High Court, challenging its judgment dated 4th July 2011 passed by the single judge concerning amalgamation of erstwhile Spice Communications Limited (Spice) with the Company and issues relating thereto is pending. Meanwhile, through interim order passed by the said Bench of the High Court, DoT has been directed to accept the License Fee from the Company against the licenses for Punjab and Karnataka service areas granted to erstwhile Spice without prejudice; maintain status quo in relation to the aforesaid two operating licenses and not to take any coercive action in relation to any demand concerning remaining four non operating licenses till the next hearing. The financial results continue to include the results of Punjab & Karnataka service areas.