Media

Idea Cellular Limited announces impressive Q3 results

22nd January, 2009

Highlights

  • Idea, 13 service areas  - revenue up 13.9 per cent; PAT up 70.7 per cent (QoQ)
  • Idea, consolidated  - revenue up 18.5 per cent; PAT up 52.3 per cent (QoQ)
 
Idea (including wholly owned subsidiaries on
standalone basis)
Idea consolidated
Q3FY09
Q2FY09
Q3FY08
Q3FY09
Q2FY09
Q3FY08
(Rs Mn)
Revenue            
11 service areas
25,726
22,954
17,103
 
Mumbai + Bihar
483
52
-
     
Total revenue
26,209
23,006
17,103
27,311
23,037
17,103
             
EBITDA            
11 service areas
7,570
6,446
5,694
     
Mumbai + Bihar
(765)
(366)
-
     
Total EBITDA
6,805
6,081
5,694
6,974
6,068
5,694
             
Fin & treasury charges (net)
600
1,455
782
874
1,497
782
Depreciation & amortisation
3,579
2,996
2,277
3,937
3,032
2,277
PBT
2,626
1,630
2,635
2,163
1,540
2,635
PAT
2,562
1,501
2,367
2,195
1,441
2,367


Idea Cellular Limited (Idea) today announced its unaudited results (limited review) for the third quarter (Q3) and nine months ended 31 December 2008.

Revenues for Idea's 13 operating service areas for Q3 at Rs. 26,209 million, grew by 13.9 per cent on a QoQ basis and by 53.2 per cent on a YoY basis.

The EBITDA for the 11 Idea service areas in Q3 enhanced to Rs 7,570  million compared to Rs 6,446 million in Q2, representing a margin improvement from 28.1 per cent to 29.4 per cent. However, Q3 captures the impact of Mumbai and Bihar launches for the entire quarter, whereas Q2 had the impact only of Mumbai for five weeks. Consequently, total EBITDA margin declined marginally from 26.4 per cent to 26.0 per cent, even though total EBITDA increased by 11.9 per cent from Rs 6081  million in Q2 to Rs 6,805  million in Q3.

On a consolidated basis, revenues for Q3 at Rs. 27,311 million, grew by 18.5 per cent on a QoQ basis. The EBITDA at Rs 6,974 million showed a growth of 14.9 per cent on a QoQ basis. Consolidated PAT for Q3 was Rs 2,195 million as against Rs 2,562 million on a standalone basis. The consolidated PAT is depressed by Rs 367 million on account of the consolidation of Idea's 41.09 per cent shareholding in Spice Communications from 16 October 2008 and on account of Idea group's 16 per cent shareholding in Indus Towers.

On 5 December 2008, an affiliate of Providence Equity Partners has invested Rs. 21 billion  in Aditya Birla Telecom Limited (ABTL) by way of subscription to 1.925 million compulsorily convertible preference shares to be converted into 16.14  per cent of equity share capital of ABTL post conversion.

Idea, including service areas of Punjab, Karnataka and Bihar, added 4.03 million subscribers during Q3 taking its subscriber tally to 38.01 million, reflecting a national market share of 11.0  per cent.

Idea, along with Spice and ABTL, now holds GSM spectrum for every service area in India.

Note: Consolidated results incorporate, inter alia, ABTL (a 100 per cent subsidiary) which comprises of Bihar service area operations and a 16 per cent shareholding in Indus Towers; and Idea's 41.09 per cent holding in Spice Communications w.e.f. 16 October 2008. 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 38 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 15 service areas. Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
 
Idea Cellular is a part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 20 countries, and is anchored by over 100,000 employees belonging to 25 nationalities.