Small BusinessIdea Cellular net drops 22.5%
Idea Cellular today said that its consolidated net profit dropped 22.5 per cent to Rs 170 crore during the quarter ended December 31, 2009, as against Rs 219 crore in the third quarter of the last financial year.
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Revenues rose 15 per cent to Rs 3,149 crore against Rs 2,730 crore during the October-December quarter in the previous financial year. The latest reporting quarter’s results included revenues realised from the consolidation of a 41 per cent stake in Spice Telecom and 16 per cent in Indus Towers.
On a standalone basis, Idea’s net profit declined 23.11 per cent to Rs 218.38 crore, compared with Rs 284.01 crore a year ago. The average revenue per user fell to Rs 200 a month at the end of the December quarter from Rs 209 a month during the quarter ended September — a fall of 4.31 per cent. This, despite a 15 per cent rise in minutes spent on the network.
“New players who did not exist a year ago are taking a bite of the market,” Idea Managing Director Sanjeev Aga said at a press conference. He also said, in addition to the stress of lower rates, Idea launched operations in seven new circles during the last nine months, which resulted in operational losses.