relcomlogoAverage Revenue Per User for Reliance Communications, the  dual technology (GSM and CDMA) cellular service provider, has slipped to Rs. 210 in the first quarter of fiscal 2010 from Rs. 224 last quarter and Rs. 282 for the same quarter last year.

Wireless Revenue Per Minute (RPM) is also down to 58 paise, from Rs. 0.60 last quarter, and Rs. 0.66 for the same quarter last year. Minutes of Use (MoU) is down to 365 minutes per subscriber per month, from 372 last quarter and 424 for the same quarter last year.

Minutes of Use, ARPU and RPM have all been witnessing a quarter on quarter decline, as more and more subscribers are being added into the network.

Reliance added 6.95 million wireless connections in the quarter, compared to 11 million in Q4-09. The company does not offer a breakup between number of GSM and CDMA connections. Its wireless market share rose to 18.9% from 18.8% in the previous quarter. Churn rose to 1.3% from 0.8% last quarter. Minutes of use for wireless division increased to 83.3 billion minutes from 74.8 billion recorded in Q4-09.

RCOM also operates in broadband (Net Connect), fixed wireless (Hello), tower (with Infratel), enterprise services (with Globalcom, under which are subsidiaries Flag, Vanco and Yipes), investment funding, DTH (Big TV), IPTV, BPO and retail (with RWorld and Reliance Mobile Stores) sectors.

Financials

rcomtableRCOM logged a 12.56% rise in net profit to Rs. 16,366 million though revenues only  rose marginally (0.35%) to Rs. 61,452 in the first quarter of fiscal 2010, compared to last quarter. Net profit margin was 26.6%.

Despite expectations of an increase in network cost with its GSM network rollouts, the company managed to decrease total expenditure this quarter to Rs. 4,8071.2 million. EBITDA margin stood at 39.9% and EBITDA was Rs. 24,525 million.

Details: Release | Consolidated Financials | Quarterly Report | Call (July 31, 5pm)

Note: We will be updating this post with more soon.

Segment Wise Contribution To Revenues

  • Wireless – 62%
  • Global – 25%
  • Broadband – 9%

NetConnect Has 60% Market Share? WiMAX In 100 Cities

Reliance claims to have 60% market share of the data card and USB modem market for laptops and PCs. Its NetConnect division witnessed a 3.3% dip quarter on quarter and a 22.1% growth year on year to Rs. 6840 million. It now contributes to 9% of RCOM’s revenues, compared to 10% last quarter.

Net additions to its enterprise broadband services fell further from 50,000 to 37,000 this quarter despite large investments in connecting buildings to its network. It now covers 967,100 buildings in 44 cities in India and services 1.42 million access lines. It also claims to be the market leader in the data centre services market with Reliance Data Center holding 60% market share.

Reliance plans to roll out Wi-MAX network to provide last mile access to enterprise customers in over 100 cities pan-India in this fiscal. This interest in setting up WiMAX as a backhaul is surprising given that the government has canceled WiMAX tenders and only few random projects on WiMAX are being carried out in the country.

DTH
Reliance’s Direct To Home service, Big TV, has 1.7 million customers and 12% of the market share. Competitors are Bharti Airtel (Airtel Digital), Dish TV (by Zee), Tata Sky and the latest in the arena -Videocon with Bharat Business Channel. (Read more from the DTH field on Medianama). Big TV has been widening its distribution network, and is now available in 1 lakh outlets in 6500 towns.

Big Retail Plans

Reliance has also noted that it will “aggressively” grow its branded retail network this fiscal. There are 2000 Reliance World and Reliance Express stores in 700 Indian cities as of July 2009.

Key Developments In The Quarter

  • In July, RCOM inked a Rs. 10,000 crore telecom tower sharing deal with Etisalat DB. Etisalat DB bought 45% stake in a new telco Swan Telecom which is yet to roll out.
  • Inked ties with a UK-based VAS firm, 3rd Space, to offer mobile videos to its users.
  • Offered 24×7 BBC World Service Live Radio to its subscribers
  • Launched its “Re.1″ pricing strategy for VAS
  • Demerged its optical fiber division to Reliance Infratel Limited, a subsidiary of the company.

Related

Q4-09: RCOM Q4 Net Profit Drops By 3% To Rs. 14.54 Bn; Broadband Profits Rebound To 9%; Churn & ARPU Down; 11.3 M Wireless Subs Added

RCom VAS Revenues At Rs. 109 Cr/Month; Non-SMS VAS At Rs. 91 Cr/Month; 60 Pc Of Data Card Market