November 02, 2016 / 14:19 IST
Idea’s Q2FY17revenue declined 2% QoQ, as the impact of seasonally weak volumes (down 2% QoQ) was exacerbated by aggressive pricing in the voice segment (down 3.5% QoQ) as Idea moved to correct the premium to incumbents seen in Q1. Data volumes grew15% QoQ (3G:19%) driven by data subscriber growth of 10% QoQ and usage per subscriber growth of 3% QoQ. Accelerated data network rollouts led to network cost rising to 28.2% of revenue (Q1FY17: 27.4%). EBITDA contracted 190 bps QoQ to 30.5%.
We expect Idea’s growth to be driven by subscriber addition-led volume growth in both voice and data. Given the low capacity utilization and RJio entry, we expect pricing to remain under pressure, as incumbents look to defend their market share and high-ARPU subscribers.
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