Idea Cellular’s net profit rises 14% to Rs. 228.6 crore

Idea Cellular’s net profit rises 14% to Rs. 228.6 croreIndian telecom service provider, Idea Cellular has recorded an increase of 14 per cent in net profit to Rs 228.6 crore during the third quarter of the financial year.

The company also said that its revenues increased 10.7 per cent to Rs 5578.5 crore during the third quarter from October to December, 2012 compared to the same quarter of the previous year. The company said that its profits did not rise as per expectations due to higher operating expenditure and increase in tax outflows.

The company's EBITDA (earnings before interest, taxes, depreciation and amortisation) margin remained largely stable at 26.4 per cent during the third quarter of the year. Idea's average revenue per user (ARPU) rose to Rs 158 from the Rs 148 reported in the previous quarter and the revenue per minute remained stable at 41.1 paisa.

Idea continued on its strategy of adding new high value customers during the quarter. The company added about 40 lakh3G customers across the country in the quarter. On the other hand, the company recorded a fall in the number of 2G subscribers in the second straight quarter. Idea also managed to increase the number of subscribers who actively recharge and use the services to an industry-leading 98.1 per cent.

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