Idea Cellular profit up 127%, revenue up 15 percent in second quarter

Telecom Lead India: Idea Cellular’s second quarter profit is up 127 percent, while revenue grew 15 percent.

Idea Cellular’s revenue grew 15.02 percent to INR 53140 million in the second quarter of fiscal 2013 from INR 46199 million in the same quarter previous fiscal.

Idea Cellular’s profit increased 126.84 percent to INR 2400 million in the second quarter of fiscal 2013 from INR 1058 million in the same period last year.

Telecom Capex of Idea Cellular for FY13 will be Rs 35 billion, excluding any payment towards spectrum. Idea Cellular has recently submitted application for participating in the spectrum auction.

“With the increasing proportion of rural subscribers, the seasonal slowdown in the second quarter has become more pronounced resulting in sharp contraction in the ‘Voice Minutes of Use’ by 4 percent, to 125.6 billion minutes compared to 130.9 billion minutes in Q1FY13,” Idea Cellular said in a statement.

Poor demand affected Idea’s sequential performance. Idea’s sequential quarterly revenues decreased 3.4 percent to INR 53, 481 million from INR 55,382 million in Q1FY13. But profit increased to INR 2400 million from INR 2341 million.

The Aditya Birla group promoted Idea Cellular said its 3G investment plans are on track and high speed broadband services are now available in 3,500 towns (census and non-census) in 20 service areas (including roaming arrangements).

If the government takes action against Idea Cellular on the roaming pact, along with Bharti Airtel and Vodafone, Idea Cellular’s 3G business will be in trouble.

Over 18.9 million of Idea’s 115 million subscriber base, use mobile data services, contributing 5.4 percent of total service revenue.

During the quarter, Idea Cellular’s Voice Minutes of Use decreased 4 percent to 125.6 billion minutes from 130.9 billion minutes in Q1FY13.

Idea Cellular warned that the overall wireless telecom business outlook for the quarter remains muted due to headwinds emerging from uncertain regulatory interventions, weak seasonal demand and continued grim battle for market supremacy.

The Average Realisation Per Minute (ARPM) was flat at 41.3p against previous quarter ARPM of 41.2p, in a falling voice ARPM market, supported by increasing mobile data contribution.

The company has managed to increase Non-Voice Revenue contribution to 15.6 percent; up from 14.5 percent in Q1FY13.

Idea rolled out 1,919 2G cell sites during the quarter, taking EoP 2G cell sites count to 85,779, while count of 3G cell sites (Node B) increased to 14,467 compared to 13,363 in Q1FY13.

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