Idea Cellular posts third straight loss amid price war
Idea Cellular Ltd, India`s No. 3 telecoms firm, reported a third straight quarterly loss on Thursday, reeling in the wake of a price war wrought by upstart entrant Reliance Jio.
The company reported a net loss of 8.15 billion rupees ($127.13 million) for the three months ended June 30 after posting a profit of 2.20 billion a year earlier. (http://bit.ly/2u1iLpF )
Analysts on average estimated a loss of 6.71 billion rupees, Thomson Reuters I/B/E/S data showed.
Idea`s capital expenditure guidance for full year 2018 is 60 billion rupees, it said.
Reliance Industries, led by India`s wealthiest man Mukesh Ambani, entered India`s telecoms industry last year, spending more than $30 billion on Jio and upending the sector with its low-cost data plans.
The ensuing price war has triggered consolidation in the world`s second biggest mobile phone market by users.
Idea and Vodafone Group Plc`s have agreed to merge their Indian operations in a $23 billion deal that is expected to close in 2018. Bharti Airtel is taking over operations of Norway`s Telenor in six Indian states.
This week, bigger rival Bharti Airtel reported its smallest profit in 18 quarters.