Idea Cellular lost a total of 15.87 million mobile Internet connections during the quarter ended September 2017 (Q2FY18), down 29.25% to 38.195 million from 54.06 million connections in the same quarter last year. However, on a sequential basis, the number of mobile Internet connections increased marginally from 38.122 million. The telco also lost 6.35 million mobile data connections in Q4FY17 and another 532,000 4G only connections in Q3FY17 after Reliance Jio’s aggressive entry into the market.

This quarter, Idea stopped giving out bifurcations between the number of 3G and 4G subscribers on the mobile Internet. It has clubbed both of them under the line item of broadband business. Mobile broadband subscribers recovered this quarter and stood at 29.61 million, an increase of 11.56% from 26.36 million in the preceding quarter. On a year-on-year basis, mobile broadband declined marginally from 30.07 million from Q2FY18. The total number of mobile internet connections on 2G stood at 8.59 million.

Data usage and ARPU

  • Idea’s broadband segment data volume usage stood at 413.12 billion MB for the quarter, increasing significantly from 228.80 billion MB in the preceding quarter and 84.46 billion MB in the same quarter last year. The average usage by subscribers stood at 4843 MB compared to 3083 MB in the preceding quarter and 922 MB in the same quarter last year.
  • Total mobile internet, which includes 2G, 3G and 4G, data volume stood at 438.69 billion MB and increasing exponentially from 252.82 billion MB in the preceding quarter and 107.44 billion MB in the same quarter last year. The average usage by subscribers stood at 3805 MB compared to 2204 MB in the preceding quarter and 694 MB in the same quarter last year.
  • Data APRU stood at Rs 105, declining from Rs 119 in the preceding quarter and Rs 130 in the same quarter last year. Idea’s mobile broadband ARPU also saw a continuous decrease from since Q1FY17 due to competitive pressure from the telecom industry post launch of Reliance Jio.
  • The number of sites for the broadband business (3G and 4G) increased to 133,685 from 117,386 in the preceding quarter and from 85,412 sites in the same quarter last year.

 

Voice usage

The telco is also losing money on its voice segment: Voice ARPU has been dropping constantly from Rs 130 in Q1FY17 to a low of Rs 101 in Q2FY18. However, average Minutes of Use per User (MoU) stood at 459 minutes, increasing from 441 minutes in the preceding quarter and from 368 minutes in Q2FY17.

Financials

– Idea reported a Net loss of Rs 1167 crore during the quarter, compared to a Net Loss of Rs 617 crore in the previous quarter. In the same quarter last year, it reported Rs 43 crore as Net profit.
– Gross revenue declined to Rs 7465.4 crore from Rs 8166.5 crore in the preceding quarter. On a year-on-year basis, it declined 19.72% from Rs 9300.2
– EBITDA stood at Rs 1501.6 crore, a fall of 19.15% from Rs 1857.3 crore in the preceding quarter.