Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
July 23, Sunday 2017 10:14 PM       

       HEADLINES: NCP state chief Uzhavoor Vijayan passes away                                              Leaders condole death of Uzhavoor Vijayan                                              M Vincent removed from all party posts, says KPCC                                              Priest says woman has not complained against Vincent MLA                                              Complainant’s sister comes out in support of M Vincent MLA                                              GJM preparing for underground armed movement with Maoists help                                              Remember 1971 war: Venkaiah Naidu warns Pak                                              Army decides to go big on indigenisation of critical spares                                              33% of child brides in world are Indians: Report                                              Anxiously waiting for a conclusion: Tharoor on Pushkar case                                              China braces for Typhoon Roke                                              ICC Women's World Cup final: England elect to bat                                              Kaumudi Facebook
       BUSINESS Next Article: 'AI can play key role in good governance'  
       Idea Cellular Q4 loss at Rs 325.6 cr as Jio entry takes toll
 
         Posted on :21:03:05 May 13, 2017
   
A A
       Last edited on:21:03:05 May 13, 2017
         Tags: Idea Cellular Q4 loss at Rs 325.6 cr as Jio e
 
NEW DELHI: Bashed by a severe tariff war, telecom operator Idea Cellular today reported a consolidated loss of Rs 325.6 crore in the three-month period ended March 31, 2017.
 
The company had posted a profit of Rs 449.2 crore in the same period a year ago.
 
For Idea, this is the second consecutive consolidated loss in two back-to-back quarters as the company viewed the October-April period as particularly harsh and a 'period of telecom discontinuity'.
 
For the October-December 2016 quarter, Idea has posted its first-ever consolidated net loss of Rs 383.87 crore compared to a net profit of Rs 659.35 crore in the year-ago period.
 
"The Indian wireless industry witnessed an unprecedented disruption in the second half of financial year 2016-17 on account of free voice & mobile data promotions by the new entrant in the sector.
 
The October-April 2017 interval can be best described as Period of Telecom Discontinuity, permanently changing mobility business parameters," Idea Cellular said in a statement.
 
Reliance Jio made its disruptive entry into the Indian mobile market space in September last year by making voice calls and 4G data free as part of its promotional offer that continued till March this year.
 
Total revenues of the company declined by 13.7 per cent at Rs 8,194.5 crore from Rs 9,500.7 crore it registered a year ago in the corresponding quarter.
 
Idea Cellular also posted its first-ever annual consolidated loss at Rs 404 crore for 2016-17 compared to a profit of Rs 2,174.2 crore in 2015-16.
 
Annual income of Idea Cellular declined marginally to Rs 35,882.7 crore at the end of 2016-17 from Rs 36,162.5 crore it reported at the end of the previos fiscal.
 
In an effort to retain its existing mobile subscribers, Idea said it was forced to reduce on sequential quarterly basis, its voice rate by 12.5 per cent to 25.9 paise per minute compared to 29.6 paise in the previous quarter of 2016-17 as well as it dropped its mobile data rate by 27.6 per cent to 11.5 paise per megabyte compared to 15.9 paisa in the third quarter of 2016-17.
 
"However, the lure of free offerings by the new mobile operator resulted in lower than normal volume elasticity with sequential quarterly voice minutes growing by 10.3 per cent to 231.4 billion minutes versus 209.8 billion minutes in third quarter of financial year (FY) 2017," Idea said.
 
Idea Cellular also blamed tsunami of minutes terminating on Idea network from the new operator, resulting in overall higher ratio of incoming minutes recorded at below cost inteconnection usage charge rates" for fall in blended voice realisation rate.
 
The impact of free extended promotions was even more pronounced on mobile data business.
 
Idea witnessed a sequential quarterly decline of 6.4 million mobile data customers on the back of 5.5 million loss in October-December 2017 versus second quarter of FY 2017.
 
Its overall mobile data customer base receded to 42.2 million compared to 48.6 million in October-December 2017 period.
 
The 'non voice revenue' (including data) contribution to the 'overall service revenue' fell to 24.9 per cent as mobile data revenue contribution declined to 18.3 per cent.
 
"However, the company remains optimistic of revival of mobile data subscriber addition and data revenue in FY 2018 as wireless broadband prices become more affordable for higher adoption by the Indian masses across all socio-economic & geographic segments," Idea said.
A A
       BUSINESS
Next Article: 'AI can play key role in good governance'
 
 
BUSINESS HEADLINES
DeMo, GST to widen tax base, make cash dealing difficult: FM  
Pak may face economic instability if reforms stop: IMF  
UN selects Dubai as data hub for MENASA region  
Nifty ends above 9,900, RIL leads  
Sensex's early rise hits a bump, IT weighs  
Australia to help Sri Lanka combat its worst dengue fever  
Niti panel yet to finalise report on autonomous bodies: Govt  
GST win-win deal for all: Jaitley  
Rupee rallies for 3rd session, hits near 6-week high  
NSSO to conduct survey on drinking water in July 2018  
Cabinet clears draft bill to replace GST ordinances for J&K  
Sensex sinks 364 pts, ITC crashes 13 per cent  
Gold glitters on global cues, jewellers' buying  
Nifty ends above 9,900 for 1st time  
Jan Dhan deposits surge to Rs 64,564 crore  
Govt asks businesses to register under GST by July 30  
Govt asks businesses to register under GST by July 30  
Gold spirals to Rs 29,050 on global cues  
WPI inflation falls sharply to 0.90% in June, food prices ease  
AI union to protest at IGI airport over disinvestment call  
ICICI group firm buys stake in Infibeam for Rs 11 cr  
Gadkari promises strict action in NHAI bribery case  
SBI waives charge on IMPS fund transfer of up to Rs 1,000  
Subhash Garg takes charge as economic affairs secretary  
Sensex, Nifty break into new highs ahead of earnings  
 
Do you think M Vincent MLA was trapped?
Yes
 
No
 
Don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy