Idea Cellular may report Rs. 448 crores loss in Q3 2016 due to Reliance Jio
While it is known that the entry of Reliance Jio has been harmful to the private telecom operators, Idea Cellular has apparently suffered a loss of Rs. 448 crores due to this.
According to analysts, Idea Cellular is likely to report a net loss of Rs. 448 crores for Q3 2016. This would be the first time since its listing that the company has suffered a loss. Further, analysts suggest that the impact of the fee voice and data services offered by Reliance Jio has hit Idea Cellular adversely.
While Idea Cellular seems to have suffered a massive loss, it did manage to increase its subscriber base by 1.4 percent sequentially. However, the Total revenues are expected to contract 5.74 percent on a quarter-on-quarter (QoQ) basis to Rs. 8794.8 crore compared with Rs. 9300 crore reported for the previous quarter.