Reliance continues strong growth

31 Oct 2006

Reliance Communication Ventures Ltd (RCoVL), the Anil Dhirubhai Ambani group company, has reported a 37% quarterly rise in net profit for third quarter of 2006, up to INR7.2 billion (USD153 million) from INR5.13 billion in the second quarter. The results are the third quarterly financials posted by RCoVL since it was listed on 6 March. The consolidated financial results relate to RCoVL and its operating companies, including Reliance Infocomm (RIC), Reliance Communications Infrastructure (RCIL), Reliance Telecom (RTL) and FLAG Telecom. Revenues in the three months ended 30 September reached INR35.26 billion, up from INR32.5 billion in 2Q06; EBITDA was up 12.2% to INR13.53 billion and EBITDA margin reached 38%. The bulk of the company’s turnover came from its wireless business, which contributed INR25.74 billion in the period as it ended September with 26 million mobile subscribers, up from 22.52 million three months earlier. Broadband services contributed turnover of INR2.71 billion. RIC launched high speed internet access in the first half of 2005 and by the end of September 2006 it operated 425,000 broadband access lines in 30 towns across 18 circles, up from 322,000 three months earlier; the bulk of its broadband users are enterprise customers.

India, Reliance Communications (RCOM)