Idea posts 43% rise in Q3 profit
Idea Cellular surprised investors with a better-than-expected 43% rise in it's third quarter net profit as it added subscribers and the fall in call rates was arrested.
Chief executive Sanjeev Aga said the outperformance was partly attributable to the of season use of cell phones during the quarter. "We are seeing continued seasonality, that is why the December quarter is strong and the July quarter weak," he said.
Most festivals, including Diwali, fall in the quarter, increasing call and short text message traffic on telecom networks.
Idea said net profit for October-December rose to Rs 243 crore from Rs 170 crore a year ago. Revenue for the quarter was Rs 3,956 crore, up about 26% from a year ago.
Despite rise in subscriber base to nearly 82 million, the average monthly revenue per user for the company rose by a rupee to 168 in the just-ended quarter compared with July-September.
Idea also said it would launch thirdgeneration (3G) wireless services in its 11 telecom zones in the next few months. It is currently in talks with other operators for alliances to offer 3G beyond its licenced zones.