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Reliance Communications revenues dip to Rs 5,315 crore, profit falls 33% in Q1

Reliance Communications Q1 FY 2014 revenue declined marginally to Rs 5,315 crore from Rs 5,319 crore in Q1 FY 2013.

This means, the company’s strategy to increase mobile tariff did not work out effectively.

On quarter-on-quarter basis, there was 3.6 percent growth in revenue.

Its poor growth in enterprise business negatively impacted the overall growth in revenue.

The company’s net profit decreased 33 percent to Rs 108 crore in Q1 FY 2014 from Rs 162 crore in Q1 FY 2013.

The telecom operator’s Q1 EBIDTA at Rs 1,701 crore, with EBITDA margin of 31.4% amongst the highest in the industry.

Reliance Communications Q1 wireless revenue increased 4.1 percent to Rs 4,816 crore from Rs 4,626 crore in Q4.

Q1 wireless EBITDA rose 6.6 percent to Rs 1,314 crore.

The company said RPM increased 4 percent to 45.7 paisa.

Reliance Communications global enterprise (GEBU) revenue declined 6.7 percent to Rs 2,300 crore from Rs 2,466 crore in Q4 FY 2013. Its enterprise business revenue was Rs 2,451 crore in Q1 FY 2013.

Q1 EBIDTA of enterprise business declined 8.9 percent to Rs 518 crore.

The telecom operator has 31.1 million data customers.

Reliance Communications 3G users increased to 7.7 million in the first quarter of FY 2014. During the quarter, telecoms launched a new 3G plan with Apple.

Also, its latest 3G initiative — 3G services at 2G prices — will enable the company to improve revenue and profit in the current quarter.

The telecom operator’s data traffic rose 14 percent to 31,050 million MB.

Data usage per subscriber is 342 MB.

editor@telecomlead.com

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