ibusinesslines.com
ibusinesslines.com June 22, 2018


Idea Cellular reports Q2 net loss at Rs1,107 crore

13 November 2017, 10:39 | Jodi Jackson

Idea Cellular reports Q2 net loss at Rs1,107 crore

Idea Cellular reports Q2 net loss at Rs1,107 crore

Stock of Idea was trading 5.62 per cent down at Rs 91.60 on the BSE on Monday.

As industry operating tariffs tumble, voice and data volume growth partially compensated the steep rate fall. Idea will get Rs 4,000 crore (and Vodafone Rs 3,850 crore) from the tower deal if sale completion precedes telcos' merger.

Idea Cellular said it expects to close the new 4G ICR arrangements with Vodafone India at the earliest for an additional 4G coverage in almost 5,000 new towns and neighboring villages for each operator.

The Tower purchase would give Boston-based ATC, which operates nearly 150,000 communications sites globally, an additional 20,000 towers in a country with more than 1 billion mobile-phone subscribers.

The standalone tower businesses of Vodafone India and Idea are pan-Indian passive telecommunication infrastructure businesses, comprising a combined portfolio of approximately 20,000 towers with a combined tenancy ratio of 1.65x as of 30 June 2017, the companies said in a joint statement.

"Both Vodafone India and Idea as customers, and ATC as a mobile network infrastructure provider have agreed to treat each other as long-term preferred partners, subject to existing arrangements". And also counter the bruising price war triggered by Mukesh Ambani-owned Reliance Jio Infocomm. The merger is expected to be completed in 2018.


Besides, the depreciation and amortisation charge increased to Rs 2,114.3 crore and interest and financing cost rose to Rs 1,182.9 crore as the company continued to aggressively invest in expanding its 4G footprint, the statement added.

The incumbent operators have blamed competitive pressures triggered by the free and disruptive offers of Jio, for the financial stress in the sector.

The company had a net debt of Rs 54100 crore at the end of September quarter.

The company's tower business reported a standalone revenue of Rs 758.5 crore for the FY17 with a net worth of Rs 662.3 crore.

This is published unedited from the PTI feed.



Other News

Trending Now

Federer: "Sock's bum is a big distraction"
Players qualify for the final event of the year by accumulating enough points throughout the year to finish inside the top eight. Federer, in London for the ATP Finals, starting on Sunday, said he had enjoyed watching the matches on TV but urged caution.

Martellus Bennett is active for the Patriots for Sunday Night Football
Bennett was claimed off waivers by the Patriots on Thursday after being released Wednesday by the Packers. Gillislee may be the biggest surprise as it is first game inactive as a member of the Patriots.

NASCAR at Phoenix: Matt Kenseth wins, but Brad Keselowski advances to championship
After the red flag to extinguish the fire, Elliott started marching to the front and had his run-in with Hamlin. Keselowski finished 16th, and while Chase Elliott finished second, Keselowski's points advantage proved enough.

North Korean soldier defects to the South at Joint Security Area: JCS
The leaders of South Korea and China , moon Jae-In and XI Jinping have agreed on the peaceful settlement of relations with North Korea .

Ravi Shastri backs MS Dhoni, says "jealous" people want him to retire
Earlier during the tour of Windies, the 36-year-old had faced criticism for not being able to tune up the run-scoring rate. Indian cricket team head coach Ravi Shastri feels that senior pro M.S.

Roy Moore: Allegations are 'desperate attempt to stop my political campaign'
As you may already know, many men have been accused of similar crimes lately including, most recently, Louis CK and Kevin Spacey. O'Reilly made his first return appearance on Fox in September, when Hannity interviewed him.

Date of Jimmy Garoppolo's first 49ers start reportedly known
The chances that Beathard was ever going to do enough to be the Niners' long-term starter were always slim. At halftime, Beathard was 13-of-16 for 198 yards with the two touchdowns for a 157.8 passr rating.