Idea posts Q1 profit of Rs 256 crore on tower sale gain

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Published: July 30, 2018 5:17:05 PM

Idea Cellular reported a consolidated profit of Rs 256.50 crore for Q1 FY19 against a loss of 814.90 crore in the corresponding period last year, helped by a one-time gain from the sale of its telecom towers.

Average revenue per user declined to Rs 100 from Rs 105 on a QoQ basis.

Idea Cellular reported a consolidated profit of Rs 256.50 crore for Q1 FY19 against a loss of 814.90 crore in the corresponding period last year, helped by a one-time gain from the sale of its telecom towers. A gain of about Rs 3,364 crore from the sale of Idea Cellular Infrastructure Services, helped the company turn in a profit. Analysts, on average, were expecting a net loss of Rs 1,371 crore, according to estimates by Thomson Reuters.

Revenue from operations fell to Rs 5,889.20 crore in Q1 this year compared to Rs 8,166.50 crore last year, with the mobile carrier hit by an aggressive pricing war set in motion by the entry of deep-pocketed rival Reliance Jio.

Average revenue per user declined to Rs 100 from Rs 105 on a QoQ basis.

Meanwhile, Idea reported a net loss of Rs 1,018 crore on a standalone basis during the January-March quarter. Idea’s merger with Vodafone India, which will potentially create India’s biggest telecom operator, is expected to close shortly. In addition, during the last quarter, the company was also impacted by the cut in international termination rate brought about by the Telecom Regulatory Authority of India since February.

However, the operator managed to narrow its net loss to Rs 1,018 crore from Rs 1,352 crore during Q3 FY18, when it was impacted by a 57% cut in domestic mobile termination charge also brought about by the TRAI. Lower, below-cost tariff as a result of bundled data and voice plans, which has seen most consumers move to lower packs, saw the company’s standalone revenue decline at Rs 6,137.3 crore during the quarter, which is lower by 5.7% compared to the preceding quarter.

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