Idea Cellular announces un-audited results for the FirstQuarter (Q1)ended June30, 2014
Highlights — Q1 FY15
- Idea — Standalone1 — Revenue Rs. 75,562mn, EBITDA Rs. 22,664mn, PAT Rs. 10,117mn
- Idea — Consolidated2 — Revenue Rs. 75,610mn, EBITDA Rs. 25,106mn, PAT Rs. 7,282mn
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Idea, the fastest growing large Indian Mobile operator, starts the new financial year with highest ever incremental revenue growth of Rs. 5,157 million in a quarter, helping the company reach 30% EBITDA margin. Continuing its upward trajectory, the company achieved 7.3% sequential quarterly revenue growth, on the back of 6.5% growth in Q4FY14. This quarter Idea delivered balanced growth with sequential quarterly voice minutes expansion by 5.2% and ‘Average Realisation per Minute’ (ARPM) improvement of 3.3%.
During the quarter, the company carried 165.2 billion minuteson its network, registering 12.2% YoY growth and 32.5 billion Megabytes of Mobile Data on its 2G+3G platform, YoY growth of 136%, reaffirming strong consumer demand for brand Idea.
The higher voice rate realization and jump in Data contribution to 11.5% of service revenue helped improve‘Average Realisation per Minute’ (ARPM) by 1.5paisa from 43.6p in Q4FY14 to 45.1p in Q1FY15. The Value Added Services (VAS)contribution has improved sharply to 17.8% of overall service revenue.
The standalone EBITDA at Rs. 22,664 million grew faster by 14% on QoQ basis due to multiple drivers including scale benefit, better cost management and robust voice & data growth. The EBITDA margin has improved sequentially by 1.8% to 30%. Including Indus dividend receipt of Rs. 3,623 million, the company has delivered highest ever standalone ‘Profit After Tax’ (PAT) of Rs. 10,117 million, nearly double the previous quarter.
Brand Idea continued its subscriber growth momentum with 3.2 million net new customer additions, now servicing 139 million quality base as ‘Average Revenue Per User’ (ARPU) improved to Rs. 181 (Rs. 173 in Q4FY14) and MoU/Subscriber increased to 401minute (397minute in Q4FY14). The company continued its journey of strengthening its competitive market standing with VLR subscriber market share climbing to 17.7% (May 2014) and Revenue Market Share (RMS) @16.6% in Q4FY14, an increaseof 0.9% compared to Q4FY13.
This quarter, Idea reversed the falling ‘Average Realisation per MB’ (ARMB) data rate trendby improvement of 1paisa to 26.3p (vs 25.3p in Q4FY14).The explosive mobile data volume growth and ARMB improvement has helped company deliver 23.6% Mobile data revenue growth. The net Mobile data consumer base has risen in the quarter by 2.6 million to 27.9 million. The blended Data ARPU (2G+3G) also improved to Rs. 108 and Usage per Data subscriber is at 409 MB, among the highest in industry. Further, the company launched its 3G services in Punjab service area from May 29, 2014 extending Idea own ‘High Speed 3G Broadband’ Services presence to 11 service areas covering 72% of its subscriber base.
In June 2014, company successfully completed its ‘Qualified Institutions Placement’ (QIP) and allotted 223.9 millionfresh equity shares at an issue price of Rs. 134 per Equity Share (including a premium of Rs. 124 per Equity Share), aggregating to Rs. 30,000 million. Both Foreign and Indian large institutional investors evinced strong interest for Idea’s fresh capital. With additional equity infusion and strong Cash Profit of Rs. 20,230 million in the quarter, Idea has reduced its Net Debt by Rs. 52,087 million to Rs. 139,769 million. The Net Debt to Annualised EBITDA ratio now stands at 1.54, providing the company sufficient headroom toparticipate in the forthcoming spectrum auction.
For Q1FY15, on consolidated basis including Indus 16% contribution, Idea revenue grew by 15.6% against same quarter year ago and EBITDA roseby 20.9%, driving the EBITDA margin to 33.2%. The consolidated PAT at Rs. 7,282 million has grown sharply by 57.4% from Rs. 4,627 million in Q1FY14.
Thestrong consumer demand & brand affinity, expandingnetwork footprint&spectrum portfolio and steady Cash flows from operationsreaffirms Idea ability to deliver consistent, competitive, responsible and profitable growth. The company is well geared to meet all volatile, uncertain, complex and ambiguous developments and remain on course of its mission to improve its market standing both in Mobile voice and data business.
Notes:
1. Idea Standalone represents Idea, and its 100% subsidiaries. Effectively, this encompasses all operations, excluding theJoint Venture i.e.Indus.
2. Idea Consolidated represents Idea Standalone and proportionate consolidation of Indus (@16%).
3. EstablishedService Areas represent 15 service areas namelyMaharashtra & Goa, Gujarat, Andhra Pradesh, Madhya Pradesh & Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West & Uttaranchal, Uttar Pradesh East, Rajasthan, Himachal Pradesh, Punjab, Karnataka,Mumbai and Bihar service areas.
4. NewService Areas represent7 service areas of Orissa, Tamil Nadu, J&K, Kolkata, West Bengal, Assam and North East.
5. Cash Profit is calculated assummation of PAT, Depreciation&Amortisation, charge on account of ESOPs and Deferred tax, for the relevant period.
6. Figures for past periods have been regrouped, wherever necessary.
About Idea Cellular Ltd.
Idea Cellular is the third largest wireless operator in India with a Revenue Market Share of 16.6% (Q4FY14).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 more than30countries, is anchored by an extraordinary force of over 136,000 employees belonging to 42nationalities, and derives over 50% of its revenues from operations outside India.
Idea Cellular Limited - CIN L32100GJ1996PLC030976
Registered Office: Suman Tower, Plot No. 18, Sector 11, Gandhinagar 382011, Gujarat, India
Tel: 91 79 6671 4000, Fax: 91 79 2323 2251. Web Site: www.ideacellular.com; E-mail: [email protected]
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