Idea surpasses expectation with 13% rise in net profit

27 Jul 2009

Indian mobile network operator Idea Cellular has released its financial results for the three months ended 30 June 2009, revealing a better than expected increase in consolidated net profit. Taking into account all of its subsidiaries, including Spice Communications, Idea posted a consolidated net profit of INR2.97 billion (USD60.9 million), up 12.9% against the same period a year earlier. The telco attributed the solid performance to continued subscriber additions, as its standalone customer base increased by 3.9 million in the quarter to reach 42.8 million; it also added 200,000 subscribers through its Spice operations in the Punjab and Karnataka circles. Consolidated revenue rose 37% year-on-year to INR29.76 billion, while earnings before interest, tax, depreciation and amortisation (EBIDTA) were up 19.4% at INR8.59 billion. Despite the solid growth Idea said that revenue had been impacted by a reduction in termination charges for national calls from INR0.30 per minute to INR0.20, and international calls from INR0.40 to INR0.30.