Views on Idea Cellular 3QFY2014 results - Angel Broking

Ms. Ankita Somani (Research Analyst – Telecom, Angel Broking) on Idea Cellular 3QFY2014 results:

"For 3QFY2014, Idea Cellular (Idea) reported broadly in-line set of results. Idea's consolidated revenue grew by 3% qoq to Rs. 6,613cr. The mobility segment's revenue grew by 5% qoq to Rs. 6,535cr, on the back of on back of 4% qoq growth in total Minutes of usage to 145bn min and 107.6% yoy in data volume. MOU grew by 2.2% qoq to 376min; ARPM grew by 0.4% sequentially to Rs. 0.45/min and thus, ARPU grew by 3% on a qoq basis to Rs. 169/month. The company clamped down on promotional minutes resulting in the ARPM improvement. The VAS contribution remained largely flat on a qoq basis at 16.1% because of steep decline in nom-data VAS. The higher mobile data adoption has primarily led to VAS growth with data revenue as % of service revenue improved from 3.8% to 9.5% in last one year. also increased to 16.1% (15.2% in 4QFY2013) further improving overall ARPM. Idea's subscriber base increased by 1.6mn subscribers during the quarter with the end of period (EoP) subscriber base standing at 128.7mn. Idea's EBITDA margin slipped marginally by ~10bp qoq to 31.1%, due to increase in marketing and subscriber acquisition costs. PAT came in at Rs. 468cr, up 4.5% qoq, led by strong revenue growth. We maintain our Neutral rating on the stock."

Source : Equity Bulls

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