wordpress blog stats
Connect with us

Hi, what are you looking for?

RCOM Reports 80% QoQ Decline In Profit; Minutes Of Use Down 7.23% QoQ

Reliance Communications (RCOM) has reported, on a consolidated basis, net profit of Rs. 250.89 crore for the quarter ended June 30th 2009, down 79.43% from Rs. 1219.5 crore reported for the last sequential quarter. This decline in profitability was on a 0.32% increase in revenues, up to Rs. 5109 crores, from Rs. 5092 crores for the same quarter last fiscal. The company reported a significant increase of 43.14% in its debt-equity ratio, up to 0.73, as net debt rose to Rs. 28,481.3 crore. This has been quite a slide for RCOM, as profit reported in Q1-11 was 84.67% lower than the Rs. 1636.6 crore profit reported for the corresponding quarter last year. Revenue too has declined 16.86% year on year.

RCOMs wireless revenues and EBITDA were flat quarter on quarter, though the segment reported a significant decline in EBITDA of 27.88% year on year, as EBITDA margin fell 29.17% year on year to 28.9%. Competitor Bharti Airtel

The broader trend in the wireless segment has been towards a decline in average revenue per user per month (38.1% year on year), and with increased competition in the market, revenue per minute has also declined (44% down year on year). However, what is rather surprising is a decline in the minutes of use per subsriber, which have also been falling quarter on quarter – from 365 minutes in Q1 last fiscal to 295 minutes this fiscal – a decline of 19.18%.

All of this is symptomatic of the price war and multiple SIM card utilization on telecom networks in India.

The increase in RCOM’s debt is on account of the money raised to pay for 3G spectrum in India, Mint reported. RCOM won 3G spectrum in 13 out of 22 circles, at a price of Rs. 85,85 crore. The company won spectrum in 3 metros (Mumbai, Delhi and Kolkata) and in also all those circles in which it has GSM operations.

Details: Consolidated ResultsStandalone Results | Quarterly Report

RCOM claimed a subscriber base of over 110.8 million as of June 30, 2010, representing a market share of 17.6%. It said that it is the second largest seller of mobile handsets/devices in the country, and has nearly 60% market share of the data card and USB modem market for laptops and PCs, apart from being the largest PCO operator in the private sector. In terms of broadband,  it operates in 44 cities in India with close to 1,049,900 buildings, serving close to 1.47 million access lines. Its DTH operations, Reliance Big TV, currently has 2.6 million subscribers, about 12% of the DTH market.

Advertisement. Scroll to continue reading.

Recent Developments:

RCOM Inks Exclusive Deal With Universal Music For GSM, CDMA, 3G & Mobile Broadband
RCOM To Merge Broadband, IPTV, DTH & Cable TV Ops; Acquires Digicable In Stock Deal
RCOM Launches “Unlimited” Mobile Internet Plans Capped At 2.5GB; Getting Fair Usage Limits Revoked

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.


This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.


It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...


Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ