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Idea growth slowed by pricing pressure

26 Jan 2016

Idea Cellular, India’s third largest wireless provider by subscribers, has booked gross revenue of INR90.09 billion (USD1.33 billion) for the three months ended 31December, up 3.8% quarter-on-quarter. Idea notes that its rate of revenue growth has slowed – the cellco booked q-o-q expansion of 4.5%, 5.0% and 5.9% in its Q1 FY16 (to end-June 2015), Q4 FY15 and Q3 FY15 respectively – as a result of intense price competition and reductions in mobile termination rates (MTRs). Indeed, despite average minutes of use (MOU) per customer increasing to 393 in the period under review from 388 a year earlier and average data use increasing from 470MB to 653MB over the same period, ARPU has dropped from INR179 to INR176. EBITDA for the period, meanwhile, was INR28.51 billion, up from INR27.77 billion in the previous quarter. Net profit, however, was down 7.2% q-o-q, at INR23.49 billion. Idea claimed 171.9 million mobile users at the end of December 2015, including 27.6 million 3G customers, up from 166.6 million and 24.5 million respectively in September.

India, Vi (Vodafone Idea Limited, VIL)

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