Idea Cellular net profit more than doubles
23 October 2012
GSM operator Idea Cellular second quarter net profit more than doubled to Rs240 crore on consolidated basis on subscriber additions and growth in third generation (3G) user base, compared with a net profit of Rs105.76 crore for the same quarter a year ago.
However, the industry outlook is uncertain due to regulatory pressures and strong competition, the Aditya Birla group company said on Monday.
The Mumbai-based company's total income rose to Rs5,314 crore, compared with Rs4,619.92 crore recorded during the same period earlier.
''Idea Cellular has been growing on all fronts. We have been adding subscribers for our 2G services, while our 3G services has also been growing. Our revenue market share rose to 1.2 per cent,'' Idea Cellular Managing Director Himanshu Kapania said.
The company's operating profits (EBITDA) grew by 23.6 per cent during the quarter from 22.4 per cent posted during the same period a year ago. Its minutes of usage (MoU) rose to 125,646 million during the quarter under review (from 106,224 million), while non-voice revenues contributed to 15.6 per cent (13.2 per cent), while revenues from 3G services accounted for 5.4 per cent.
However, the company's average revenues per user – a metric to gauge the financial health of a telecom operator – fell to Rs 148 per month during the quarter from Rs155 posted in the year ago quarter.