Reliance Communications says that it is consciously moving away from the low margin business; it’s results, announced today, indicate an increase in EBITDA margins (up from 32.4% to 33.3%), but a decline in revenue (at Rs. 5004 crore, down from Rs. 5118 crore the previous quarter). Net profit of Rs. 480 crore, up 7.7% from Rs. 446 crore sequentially EBITDA at Rs. 1668 crore from Rs. 1660 crore sequentially
– Wireless: on a consolidated basis, the companys Wireless business declined 2.33% sequentially, at Rs. 4064 crore in revenues, although revenue increased 1.04% year on year from Rs. 4022.5.
– RCOM’s customer base is up 34% YoY from 94 million, at 126 million.
– Broadband revenues declined 6.55% quarter on quarter, and 12.23% sequentially.
– RCOM says that Enterprise and Globalcom EBITDA represents 37% of consolidated EBITDA. Globalcom reported a 40.75% sequential increase in profit before tax and financial charges.
– RCOM signed an MOU with China Development Bank Corporation for a 10 year financing of $1.93 billion. It has a 10 year maturity fund. This includes a loan of $1.33 billion for refinancing 3G spectrum fees, and $600 million towards 85% of equipment and services to be procured from Huawei and ZTE. This is over and above the $750 million already utilized by RCOM for procurment of equipment and services from Huawei and ZTE.