LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » Companies News

Disruption from RJio, Idea Cellular reports net loss of Rs 386 crore in Q3

Idea Cellular said, “The Indian mobile industry witnessed an unprecedented disruption in the quarter to October to December 2016, primarily due to free voice and mobile data promotions by the new entrant in the sector

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Disruption from RJio, Idea Cellular reports net loss of Rs 386 crore in Q3
Idea reported net loss of Rs 385.5 crore, compared to net profit of Rs 655.5 crore in the corresponding period of the previous year. Photo: Reuters
Written By: ZeeBiz WebTeam
Updated: Sat, Feb 11, 2017
05:45 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Current tariffs are defeating economics; it should go up: Balesh Sharma, Vodafone Idea Current tariffs are defeating economics; it should go up: Balesh Sharma, Vodafone Idea
Idea Cellular unveils new Rs 159 prepaid pack, offers 1GB data daily; Is it better than RJio, Vodafone, Airtel Idea Cellular unveils new Rs 159 prepaid pack, offers 1GB data daily; Is it better than RJio, Vodafone, Airtel
Situation bad, whole industry is bleeding: Vodafone Idea officer Situation bad, whole industry is bleeding: Vodafone Idea officer
BSNL unveils new Rs 78 recharge pack, beats even Reliance Jio; check this pre-Durga Puja, Dussehra, Diwali offer BSNL unveils new Rs 78 recharge pack, beats even Reliance Jio; check this pre-Durga Puja, Dussehra, Diwali offer
Tariff War! BSNL takes on Reliance Jio with this new recharge pack ahead of festive season; check data, price and unlimited call offers Tariff War! BSNL takes on Reliance Jio with this new recharge pack ahead of festive season; check data, price and unlimited call offers

Idea Cellular reported consolidated net loss of Rs 385.5 crore in its third quarter ended December 31, 2016, stating free voice and mobile data promotions of Mukesh Ambani's Reliance Jio as main reason. 

The company reported net loss of Rs 385.5 crore, compared to net profit of Rs 655.5 crore in the corresponding period of the previous year. 

In previous quarter (Q2FY17), Idea reported net profit of Rs 91.4 crore. 

Idea Cellular said, “The Indian mobile industry witnessed an unprecedented disruption in the quarter to October to December 2016, primarily due to free voice and mobile data promotions by the new entrant in the sector

Consolidated total income from operations stood at Rs 8662.7 crore, down by 3.79% year-on-year (YoY) and 6.85% quarter-on-quarter(QoQ). 

On standalone front, Idea reported net loss of Rs 492.2 crore. Operating profit stood at Rs 2165.5 crore and margins at 25%. 

Idea added, "Consequently revenue KPIs and financial parameters for all mobile operators have sharply declined, and for the first time in its history the flourishing Indian wireless sector is trending towards an annual revenue decline of 3% - 5% in FY17 compared to FY16.”

To retain its existing mobile subscribers, Idea was forced to reduce its voice rates by 10.6% to 29.6 paise per minute versus 33.1 paise in Q2FY17, and mobile data rates (ARMB) by 15.2% to 15.9 paisa per megabyte against 18.7 paisa in Q2FY17.

Despite revision in voice rates, Idea said, "The lure of free offerings resulted in lower than normal volume elasticity with the quarterly sequential voice minutes growing only by 7.3% to 210 billion minutes compated to 195.5 billion minutes in Q2FY17, that too led by double digit growth in incoming call volume."

Going ahead, Idea said, "Impact of free promotions was even more pronounced on mobile data business. The company, witnessed a decline of 5.5 million mobile data customers on quarter basis with overall mobile data subscriber (2G+3G+4G) base receding to 48.6 million versus 54.1 million of Q2FY17.

While, Idea's mobile data volume grew by 1.3% to 108.8 billion megabyte, though per subscriber data usage grew marginally to 703 megabyte against 694 megabyte in Q2FY17.

Consequently, the ARPU per data subscriber fell to Rs 111 against Rs 130 in Q2FY17.

Meanwhile in Q3,  Idea added a healthy 5.6 million new customer on Visitor Location Register (VLR) taking the VLR subscriber EoP base to 192.1 million as on december 31, 2016.

As on December 31, 2016, Idea's net debt stood at Rs 49,140 crore, a larger portion of this debt is from Department of Telecom (DoT) for spectrum acquired in last four spectrum auctions. 

Overall, Idea said “Inspite short term challenges, it remains committed to the process of building world class mobile broadband services.

The company is aggressively participating in the Digital India mission and is gearing to offer 'PAN India wireless broadband services involving 3G and 4G between March - April 2017.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Idea CellularIdea Cellular Q3 resultQ3FY17financial performanceIDEA CELLULAR NET LOSSIDEA CELLULAR MOBILE DATATelecomReliance JioMukesh AmbaniJIO free data OFFER
RELATED NEWS
Current tariffs are defeating economics; it should go up: Balesh Sharma, Vodafone Idea Current tariffs are defeating economics; it should go up: Balesh Sharma, Vodafone Idea
Idea Cellular unveils new Rs 159 prepaid pack, offers 1GB data daily; Is it better than RJio, Vodafone, Airtel Idea Cellular unveils new Rs 159 prepaid pack, offers 1GB data daily; Is it better than RJio, Vodafone, Airtel
Situation bad, whole industry is bleeding: Vodafone Idea officer Situation bad, whole industry is bleeding: Vodafone Idea officer
BSNL unveils new Rs 78 recharge pack, beats even Reliance Jio; check this pre-Durga Puja, Dussehra, Diwali offer BSNL unveils new Rs 78 recharge pack, beats even Reliance Jio; check this pre-Durga Puja, Dussehra, Diwali offer
Tariff War! BSNL takes on Reliance Jio with this new recharge pack ahead of festive season; check data, price and unlimited call offers Tariff War! BSNL takes on Reliance Jio with this new recharge pack ahead of festive season; check data, price and unlimited call offers

LATEST NEWS

Google Play Store removes 453 digital personal loan apps in India since Dec 28 in crackdown against unfair online lending | #OperationHaftaVasooli

SAIL, Telecom Stocks, HCL Technologies to Bajaj Healthcare - here are top Buzzing Stocks today

SAIL OFS - Anil Singhvi picks it as Stock of the Day, says BUY | From floor, discount, subscription to outlook, know strategy here

Exclusive: Tread with caution in 2021, expert Mehraboon Irani tells investors; reveals his favourate stocks, budget expectations to Anil Singhvi

7th Pay Commission latest news: Salary up to Rs 2.08 plus DA, HRA; check 7th CPC details in Central Government at upsconline.nic.in

Budget in a Minute: Market Guru Anil Singhvi explains what is Direct Tax

HCL Technologies Q3 FY21 results | Key guidance, Revenue to key numbers - all EXPLAINED

Covishield will be administered at 75 hospitals, COVAXIN at 6

RULES CHANGED! From today, you can't make a phone call without following this rule

Very important Aadhaar Card Update! Do your Aadhaar-mobile linking by this date or miss a big opportunity

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved