RCOM net profit plunges 54.7% in 2Q 2009

2 Nov 2009

Indian mobile network operator Reliance Communications (RCOM) has revealed that net profit for its second fiscal quarter of 2009 slumped by more than 50% year-on-year on the back of increased competition and the costs of deployment for its GSM network. The cellco posted a net profit of INR7.4 billion (USD154 million) for the three months ended 30 September 2009, down 54.8% year-on-year, while it also reported that revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) had both declined against the same period last year, down 7.2% and 17.6% respectively. For 2Q 2009 revenue for the operator totalled INR61.5 billion, while EBITDA was INR20.2 billion.

Commenting on the results, Anil Ambani, RCOM’s chairman, said: ‘In the near term, the wireless sector in India is undergoing a challenging phase, with increased competitive intensity and continuing aggressive rebalancing of mobile tariffs by all leading players. We believe a forward-looking and conducive regulatory framework by TRAI and DOT, which is already under consideration, to facilitate market driven industry consolidation will be a strong enabler to protect and create long term value for all stakeholders.’

India, Reliance Communications (RCOM)