Idea Cellular posts its results for the second quarter of financial year 2013 and half-year ended September 30, 2012.

?

Idea Cellular has posted its results for the second quarter of financial year 2013 and half-year ended September 30, 2012.

The company has posted a 4 per cent decline in the voice minutes of use for this period, at 125.6 billion minutes, compared to 130.9 billion minutes in the first quarter of financial year 2013.

According to Idea Cellular, this can be attributed to the increasing proportion of rural subscribers. Moreover, the company says that the overall outlook for its wireless business for the quarter remains muted, due to headwinds emerging from uncertain regulatory interventions, weak seasonal demand and stiff competition in the sector.

Idea Cellular’s sequential quarterly revenues also declined by 3.4 per cent, to Rs 53, 481 million, against Rs 55,382 million in the first quarter of financial year 2013.

Meanwhile, its EBITDA margins improved by 0.3 per cent, to 23.6 per cent, primarily through optimisation of expenditure related to subscriber acquisition and servicing and advertisement and business promotion.

Additionally, the company has continued to invest in long term value creators. It launched 3,023 new sites (2G and 3G) and expanded to new business streams, namely international long distance, internet services and devices.

The company’s absolute EBITDA in the second quarter of financial year 2013 improved by 20.9 per cent on a year-on-year basis when compared with the EBITDA of the second quarter of financial year 2012.

The average realisation per minute (ARPM) was flat at 41.3p, against the previous quarter’s ARPM of 41.2p, in a falling voice ARPM market, supported by increasing mobile data contribution. The company also increased the contribution of its non-voice services to its overall revenue, from 14.5 per cent in the first quarter of financial year 2013 to 15.6 per cent.

During the quarter ABTL, its fully owned subsidiary, received a dividend of Rs 1,543 million from Indus; which is reflected in its standalone PAT and cash profit.

Idea Cellular registered a cash profit of Rs 12,313 million for the period under consideration, against Rs 10,502 million for the first quarter of financial year 2013. This was supported by lower interest and financing cost of Rs 1,825 million, due to the strengthening of the Indian Rupee and dividend payment from Indus. The standalone profit after tax stands at Rs 3,519 million, in comparison to Rs 1,981 million in the first quarter of financial year 2013.