Idea Cellular Reports Net Loss of Rs 1107 Crore in Q2

Idea Q2 vs Q1

Idea Cellular and Vodafone India agreed to sell their mobile phone tower units to American Tower Corp., as carriers seek to sell assets to pare their mounting debt amid a price war that eroded their profitability.

Shares of Idea Cellular today fell almost 4 per cent after the company posted a loss of Rs 1,106.80 crore for the second quarter this fiscal.

During this low demand period, the sequential quarterly voice minutes grew by 1.7% to 255 billion minutes and mobile data volume (2G+3G+4G) witnessed strong sequential growth of 73.5%.

"The aggregate cash consideration for the transactions is expected to be Rs 78.5 billion, or approximately $1.2 billion at current exchange rates, subject to customary closing adjustments", said the USA based tower company that had earlier acquired Viom Networks, another Indian tower company. Idea Cellular Infrastructure Services Ltd, a unit of Idea Cellular, had around 9,900 towers with a tenancy ratio of 1.80 as of 30 September 2017.

Vodafone India and Idea announced their merger on March 20.


The transactions will help ATC strengthen its foothold in India's telecom tower sector. Upon completion of the sale of tower businesses, Vodafone India will receive $592 million and Idea will receive $615 million. It will have nearly 400 million customers with 35% customer and 41% revenue market share.

Vodafone too has sold its tower business in India to ATC Telecom for an enterprise value of Rs 3,850 crore.

Vodafone will net $592m from the deal with Indian partner Idea Cellular receiving $615m. In 2014-15, ICIS reported total income of Rs238 crore, according to filings with the Registrar of Companies.

Indus-the biggest tower company-is a three-way joint venture among Idea, Vodafone and Bharti Airtel, which also controls Bharti Infratel. Completion of the transaction is subject to customary closing conditions and receipt of necessary regulatory approvals, and is expected to take place during the first half of calendar year 2018. Accordingly, private equity funds KKR and Canadian Pension Plan Investment Board (CPPIB) had emerged as the top contenders.

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