Idea Cellular Reports Rs 1285.6 Crore Net Loss, Revenue Down 24.9%

Idea Cellular’s net loss widened to Rs 1285.6 crore for the October-December quarter as compared to Rs 385.6 crore net loss in a year earlier period, and Rs 1107.7 crore in the second quarter of the ongoing fiscal. The telco said that the regulator, Trai’s regulation to cut the IUC rates by 57% negatively impacted its revenue and EBITDA for this quarter.

Idea Cellular

“The new domestic MTC rate and recently announced drop in ‘International mobile termination’ settlement charges effective 1st February 2018 from 53 paisa to 30 paisa per minute, remains a body blow to all operators and reduces investable funds for the critical ‘Digital India’ program,” the telco said, adding that the international IUC rate drop only benefits the foreign operators, with no commensurate benefit to Indian consumers but with significant foreign exchange and revenue loss to the Indian exchequer.

The Aditya Birla Group-led telco’s revenue plunged 24.9% in the quarter to Rs 6509.7 crore from Rs 8662.7 crore in a year earlier period.

Consequent to gross revenue decline primarily on account of MTC rate revision, the EBITDA for the quarter declined by 18.5% to Rs 1223.3 crore.

Idea said that it remains focused to optimise its operating costs in the new sector paradigm. Adjusting for IUC impact, absolute EBITDA declined by 3.2% sequentially. The EBITDA margin for the quarter declined to 18.8% (normalised margin of 19.8%) from 20.1% in Q2FY18. The ‘Depreciation & Amortisation’ charge and ‘Interest & Financing Cost (Net)’ stood at Rs. 21,414 million and Rs 1149.0 crore.

Idea said that it witnessed the strong return of subscriber addition with 7.5 million ‘Net customer adds’ on VLR during Q3FY18, on the back of success in MNP from existing operators, and launch of mass market unlimited voice bundled data plans, along with sustained broadband investment.

Resultantly, Idea improved its ‘Subscriber Market Share’ (VLR) to 19.8% in November 2017 vs 19.4% in August 2017. The company’s overall subscriber base (VLR) crossed the 200 million milestone and stood at 203 million as on December 31, 2017.

Reported By

Leave a Reply

25 Comments on "Idea Cellular Reports Rs 1285.6 Crore Net Loss, Revenue Down 24.9%"


Sort by:   newest | oldest
Priyansh Singh
January 25, 2018 5:56 am 5:56 AM

What is VLR Subscriber Base?

Could somebody confirm that they have Crossed 200 million subscriber on their own?

January 25, 2018 1:24 pm 1:24 PM

VLR = Visitor Location Register.
VLR Subscriber Base = Active users on the network (and not users with switched-off SIMs).

Yes, they appear to have crossed 200 million subscribers as of December 2017.

Priyansh Singh
January 25, 2018 11:16 pm 11:16 PM

Thank you so much for the Valuable Information. 🙂

January 24, 2018 11:32 pm 11:32 PM

Pretty satisfied with the speeds of Idea !
Priyansh Singh
January 25, 2018 5:54 am 5:54 AM

Is it Redmi Note 4?

Getting Great Speeds on Idea. Nikhil told us that it doesn’t supports Band 1 so idea & vodafone users face 4G issues on it.

January 25, 2018 10:56 am 10:56 AM

Redmi Y1 supports all bands except band 8!!!!!Redmi Note 3 supports all bands except band 41!!!!

Priyansh Singh
January 25, 2018 11:14 pm 11:14 PM

Xiaomi mein Gadbad Ghotala naa ho aisa toh ho nahi sakta hai 😉

January 25, 2018 10:45 am 10:45 AM
Looks like Redmi Phone!!!!! Can’t say it’s Note 4 or not!!!!! Redmi Note 4 on Idea 4G and Vodafone 4G flies in Pune as Idea 4G is on band 40 and band 3!!!!!Vodafone latches onto Idea signal I guess because they have 4G ICR!!!!! In Mumbai Vodafone 4G sucks on same phone!!!!! Lets not talk about Idea 4G in Mumbai as it is on band 1!!!!!Dont know why they don’t latch on Vodafone 4G despite being having 4G ICR!!!!! Even though band 41 is live in Mumbai this phone doesn’t support it!!!!! Even upcoming Redmi Note 5 won’t support bands… Read more »
Priyansh Singh
January 25, 2018 11:14 pm 11:14 PM

Thank you very much for the information. 🙂

Kiran Fernandes | Mumbai
January 25, 2018 9:17 pm 9:17 PM

Lol Nikhil you seem to be screaming internally with those 4 exclamation marks after each sentence. 😀

January 26, 2018 12:06 pm 12:06 PM

Some people don’t know anything and posts here!!!!! Which kills me!!!!!

Rhishav (Kolkata)
January 25, 2018 1:35 am 1:35 AM

Excellent speeds bro. Enjoy.

January 24, 2018 9:37 pm 9:37 PM

IUC cut from 14p to 6p will go down in history as the biggest scam/favor done by a regulatory body/current political party to Reliance Jio.

Girish Gowda
January 25, 2018 10:06 pm 10:06 PM

IUC should have been 0 by now according to plans drawn by trai years ago. They still aren’t just to help avoid cartel. Ofc a chinese accessing internet for the first time won’t know this.

Kiran Fernandes | Mumbai
January 25, 2018 4:16 pm 4:16 PM
With IUC abolished by 2020 in India, giving unlimited talk time won’t be a problem because people can call as much as they want. IUC is actually making operators suck money from other operators which isn’t a good thing as they’re eventually sucking more money from the customers. So IUC should be abolished and TRAI is doing the right thing by reducing it to 6p. Jio gets a higher EBITDA as he’s paying the other operators less so he’s benefiting from the lower IUC charges. On the other hand, operators like AVoId were sitting happily on IUC charges, and getting… Read more »
January 25, 2018 7:14 am 7:14 AM

Why should the advantage of iuc to bigger players continue. Already three top players have become financially strong through years of 2g services.

It is just the jio technology advantage & financial power , that these top players are struggling & loosing market share .

Old players will not have any option but to close 2g /3g & move to 4g only. They need to control cost & be at a equal platform with jio to face the competition.

January 25, 2018 1:13 pm 1:13 PM

14p IUC was not an ‘advantage’. It helps the telecoms recover the huge license fee they had to pay to the government during spectrum auctions, in addition to their capital investments. Au contraire, Jio went through the backchannels to get their 4G spectrum at dirt cheap prices.

Old players don’t have petroleum money to subsidise their operations, the way Jio is subsidised by the money from Reliance Petroleum (It’s another story there where Reliance Petroleum illegally extracted gas that belonged to government’s ONGC in Krishna-Godavari basin)

Girish Gowda
January 25, 2018 10:08 pm 10:08 PM

If Jio got spectrum cheaply, then so did all others. If they didn’t, then nobody got it cheaply. 2G scam happened for a reason under Congess. Make more sense.

January 25, 2018 9:01 pm 9:01 PM
@ Dragonmonk : You should be in Raw or CBI boss. You did it which no one did till now. “Jio went through the backchannels to get their 4G spectrum at dirt cheap prices.” hahahaha… 🙂 From where did you get this information?? I am not saying you are wrong but it will be better if you can share the source with us. Every operators should follow the rule even it could be Jio/Airtel or any.. Where were you when Airtel got 900 for most of the circles and more over 99% villagers were forced to use 2G only (with… Read more »
January 26, 2018 12:11 pm 12:11 PM

He is right in one sense!!!!!

January 25, 2018 7:04 am 7:04 AM

Who is end user of benefiting at end }? Consumer na …..Then u should Support users …millions from villages are was out of reach of internet and it is possible because of affordability of Jio ….

January 25, 2018 1:17 pm 1:17 PM

Low prices are not *always* beneficial for the consumers in the long run. This is one of those cases.

When most telecoms die and one is left with two or three companies, how do you the prices will change? If companies make decent profits (not losses), it ultimately benefits consumers because those companies reinvest their profits in improving the infrastructure.

Girish Gowda
January 25, 2018 10:09 pm 10:09 PM

Oh really? U should know we had avoid cartel’s oligopoly before Jio came, Miss. Chinese.

January 25, 2018 9:04 pm 9:04 PM

@dragonmonk : According to you we should pay 250/GB to looter operators for supporting them to avoid Jio Monopoly. It’s good now a days paid agents are also worried from Jio.

250/GB for avoid group with same tariffs, was this not monopoly??? Where was the competition?

Priyansh Singh
January 25, 2018 5:59 am 5:59 AM

I also think. Before Jio were all Sector Regulators Sleeping? Clear Indication favouring one Operator. Be it 90 days Tariff Validity or Domestic/International IUC cuts. This is very Bad. Moving towards Monopoly.