RCOM stable as cost-cutting compensates for falling turnover

18 Nov 2014

Reliance Communications (RCOM) has registered a 16.3% quarter-on-quarter increase in net profits, as minor improvements in the operator’s mobile customer base and decreases in expenses offset the impact of falling revenues from its global operations, and non-mobile services in India. Total revenues dipped by 2.2% q-o-q for the three months ended 30 September 2014 to INR54.03 billion (USD875.5 million), following a 6.2% decline in turnover from RCOM’s global operations and a 27.8% fall in earnings from ‘other’ services in India – including data centres and direct to home (DTH) TV. Revenues from telecoms services, meanwhile, increased by 0.4% on a quarterly basis to INR45.35 billion. Consequently, EBITDA was down 1.9% q-o-q to INR18.27 billion but a 12.6% fall in finance charges saw net profits rise from INR1.64 billion to INR2.141 billion. In operational terms, RCOM’s mobile subscriber base grew to 111.3 million (up a 1.1% q-o-q), of which 15.1 million (+16.2%) were 3G users.

India, Reliance Communications (RCOM)