Idea Cellular Ltd., Aditya Birla Group company, the third largest telecom network provider missed estimates in the first quarter of this fiscal year while posting its third net loss in with both voice and data services majorly with the introduction of Reliance Jio and its free services.
For Q1of this fiscal year, Idea posted a net loss of Rs81 5 crore compared with a net profit of Rs 220 crore in Q1 of last year and a loss of Rs 325. 6crore in past three months. Operating revenue fell nearly 40 per cent year-on-year to Rs.1,875 crore while operating margins fell from 32.6 per cent to 23 per cent in the intervening 12 months. Revenue in the fiscal fourth quarter was Rs 8126.1 crore.
Idea said in a statement that The upheaval in the Indian wireless industry continued in Q1FY18, despite the new entrant slowly migrating from Free Services to Paid Services but with heavily discounted unlimited voice and data pricing plans.
Idea added, These aggressive tariff offerings by Idea (in response to the new entrant), led by unlimited voice and data bundled plans, resulted in a steep decline of voice and mobile data realisation rates. However, for the company, the fall in realisation rates was largely compensated by a substantial volume growth in both mobile voice and data segments. As per the Et reports.