India's Idea Cellular has reported a 69% increase in profit for its second quarter ending in September, on the back of strong subscriber growth.
Net profit for the quarter grew to 10.1 billion rupees ($165.1 million). Revenue grew 19.8% year-on-year to 128.52 billion rupees.
This also marked the first time in two years where revenue did not decline sequentially due to seasonal factors, and instead grew marginally.
Idea Cellular, India's third largest mobile operator by subscribers, added 4.6 million customers during the quarter. The company now has 143.6 million customers at an ARPU of 176 rupees, up from 164 rupees a year earlier.
While voice rates are under pressure, the company recorded a 17% year-on-year increase in voice MoUs. Mobile data volumes meanwhile surged 125.9% to 39.4 petabytes, and generated quarterly revenue of over 10 billion rupees.
Voice and data combined contributed to an average realization per minute (ARPM) of 0.45 rupees, up by 0.008 rupees. VAS accounted for 21% of the operator's total service revenue.
During the quarter, Idea Cellular reduced its net debt by 21.5 billion rupees to 118.27 billion rupees. This represents a net debt to annualized ebitda ratio of 1.32, which the operator says will give it the space required to participate in an upcoming 900-MHz spectrum renewal auction.