Idea Cellular Q4 Net Loss at RS 327.70, Says Oct-Apr 2017 a Period of Telecom Discontinuity

Idea Cellular on Saturday posted a net loss of Rs 327.70 crore for the fourth quarter which ended on March 31, as compared to a net profit of Rs 451.7 crore in an year earlier period, impacted by Reliance Jio’s free services, which sparked a brutal price war in the world’s second-biggest mobile phone market.

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The Aditya Birla Group-owned company’s posted revenue of Rs 8194.5 crore in the quarter, down from Rs 9500 crore in a year earlier period.

“The Indian wireless industry witnessed an unprecedented disruption in the second half of the financial year 2016-17 (FY17) on account of free voice & mobile data promotions by the new entrant in the sector. The October to April 2017 interval can be best described as ‘Period of Telecom Discontinuity’, permanently changing mobility business parameters. Consequently, the revenue KPIs & financial parameters for all mobile operators have sharply declined in H2FY17,” the telecom operator said in a statement.
Idea said that for the first time in its history, the flourishing Indian Mobility industry is trending towards an annual revenue decline of ~2% in FY17 (vs. FY16).

“With the new entrant starting to charge for its services, albeit very slowly, the sector is expected to return to growth in the next financial year,” it added.

As a result of this current industry upheaval, the standalone Idea revenue dropped to an unforeseen level in the quarter at Rs. 81,261 million, a sequential quarterly decline of 6.2% on the back of 6.9% decline in the third quarter.