Idea Q3 net up 43% at 243 cr

MUMBAI: The Aditya Birla Group-owned Idea Cellular has reported a higher-than-expected consolidated net profit of Rs 243 crore in the third quarter ended December 2010, up 43% from Rs 170 crore in the year-ago period. Its total income stood at Rs 3,955 crore as against Rs 3,149 crore for the same quarter last year.

The telecommunications company said that its average revenue per user stabilized at Rs 168 for the December quarter and that it added 7.6 million subscribers on the back of an improved seasonal demand in the October-December quarter.

The telecoms major saw its advertising and subscriber acquisition costs go up by 2.5% (as a percentage of revenue), largely on the back on the launch of mobile number portability (MNP). "We have not seen much of a churn post the launch of MNP but it is a good time for us to build our brand through our communication and a way to increase market share," said Sanjeev Aga, MD, Idea Cellular.

The company said that the initial public offering (IPO) of Indus Towers is likely to come out by next fiscal. Without giving any specific dates, the cellular major said it was preparing to launch its 3G services in the next few months across 11 services areas where it has been awarded the 3G spectrum and that it was in talks with other operators for the non-licence areas.



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