Media

Idea Cellular announces un-audited results for the fourth quarter and the financial year ended 31 March 2009

23rd April, 2009

Fastest growing major telco - back to back years of strong market gains

Highlights for the year

  • Idea, standalone1 - revenue up 47.9 per cent; EBITDA up 21.3 per cent (YoY)
  • Idea, consolidated2  - revenue up 50.6 per cent; EBITDA up 24.9 per cent (YoY)

Idea standalone

Q4FY09
Q3FY09
Q4FY08
FY08-09
FY07-08
(Rs. million)
Revenues - 11 services areas
27,641
25,726
19,853
98,102
67,374
Revenues - new services areas*
985
483
-
1,520
-
Total revenue
28,626
26,209
19,853
99,622
67,374
EBITDA - 11 services areas
8,069
7,570
6,735
29,322
22,693
EBITDA - new services areas*
(654)
(765)
-
(1,785)
-
Total EBITDA
7,415
6,805
6,735
27,537
22,693
Depreciation and amortisation
3,897
3,579
2,597
13,212
8,768
EBIT
3,519
3,226
4,138
14,325
13,925
Interest and financing cost (net)
491
600
1,206
4,070
2,776
PBT
3,027
2,626
2,932
10,225
11,148
PAT
3,032
2,562
2,767
9,754
10,423

* incl. Mumbai, Bihar and service areas under roll-out


Idea consolidated - incl. proportionate Spice and Indus
Q4FY09
Q3FY09
Q4FY08
FY08-09
FY07-08
Total revenue
29,356
27,311
19,853
101,484
67,374
Total EBITDA
8,108
6,974
6,735
28,353
22,693
Depreciation and amortisation
4,321
3,937
2,597
14,309
8,768
EBIT
3,787
3,037
4,138
14,314
13,925
Interest and financing cost (net)
1,047
874
1,206
4,943
2,776
PBT
2,740
2,163
2,932
9,371
11,148
PAT
2,743
2,195
2,767
9,009
10,423

Standalone
Bucking the economic slowdown and heightened competitive intensity, Idea's standalone revenues for fourth quarter (Q4) of Rs.28,626 million, grew 9.2 per cent on a QoQ basis. Annual revenues of Rs.99,622 million, grew 47.9 per cent on a YoY basis. This YoY revenue growth of 47.9 per cent, on the back of the FY 2008 growth of 53.6 per cent, marks Idea as the fastest growing major telco in the world's fastest growing major telecom market.

Total minutes on the network at 44,224 million grew by 9.9 per cent on a QoQ basis. The average realised rate per minute, which had moved up from 62p to 64p in the previous quarter, settled at 63p.

Idea has quadrupled its network capacity in the last two fiscal years. Consequently, depreciation and amortisation for FY 2009 at Rs.13,212 million increased by 50.7 per cent on a YoY basis. Net interest and finance cost for FY 2009 at Rs.4,070 million, increased by 46.6 per cent on a YoY basis.

Effective 1 January 2009, Idea has entered into an IRU agreement with Indus Towers covering Idea's 11,094 towers. At the EBITDA level, the net negative impact of Indus IRU is 2.2 per cent for the quarter. However, EBITDA margin for Q4 at 25.9 per cent is almost similar to the Q3 margin, indicative of other operational efficiencies which have absorbed the negative Indus IRU impact.

PAT for the quarter at Rs.3,032 million was higher by 18.3 per cent on a QoQ basis. After absorbing the losses of the new launches of Mumbai and Bihar, PAT for FY 2009 was Rs.9,754 million.

Consolidated
The consolidated EBITDA for the quarter at Rs.8,108 million was higher by Rs.693 million compared to standalone, due to the proportionate consolidation of Indus Towers and Spice Communications. At the PAT level, the consolidated amount was lower by Rs.289 million, compared to standalone, due to a negative contribution of Rs.254 million by Spice Communications. It was also lowered by Rs.36 million by Indus Towers, being the first year of Indus operations.

Idea launched its commercial operations in the service area of Orissa in April 2009 and now operates in 16 service areas, covering 80 per cent of national subscribers. With the planned launch of Tamil Nadu by June 2009, and the remaining service areas by December 2009, Idea will have pan India operations.

Overall, the coming year will be a testing period for the Indian telecom sector. Idea is equipped to emerge competitively stronger.

Notes
1. Idea standalone represents Idea, and its 100 per cent subsidiaries incl. the ABTL service area of Bihar. Effectively, this encompasses all mobile operations in India, excluding Spice and Indus.

2. Idea consolidated represents Idea, its 100 per cent subsidiaries, and its JVs, grouped together. This covers Idea operating service areas, the ABTL service area of Bihar, the proportionate consolidation of Indus (16 per cent), and the proportionate consolidation of Spice (41.09 per cent w.e.f. 16 October 2008).

3. Figures of past periods have been regrouped, wherever necessary. Finance and  treasury charges represent interest and financing cost net of investment income and forex gains/losses.

About Idea Cellular Ltd.
A leading GSM mobile services operator with over 43.02 million subscribers, Idea Cellular along with Spice Communications and ABTL, has licenses and spectrum to operate in all 22 service areas of India, currently with commercial operations in 16 service areas. Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.

Idea is part of the Aditya Birla Group, India's first truly multinational group. The group operates in 25 countries, is anchored by an extraordinary force of over 125,000 employees belonging to 25 nationalities and derives about 50 per cent of its revenues from operations outside India.