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Reliance Communications has reported non-voice revenues of Rs 1,039.3 crore for the quarter ended March 31, 2014, registering a minor 2% growth from Rs 1,018.5 crore revenues in the previous quarter.

The telco mentions that non-voice accounted for 23.5% of RCOM’s telecom revenues for the quarter, up from 23% contribution in the previous quarter. Read about its Mobile Internet business highlights here.

Voice revenues for the company however saw minor 1.1% dip to Rs 3,378.7 crore for the quarter, down from Rs 3,416.7 crore in the previous quarter.

Note that Reliance Communications has changed its segmental reporting few quarters back, since it has re-organized its business into two units – India and Global operations. Therefore, it no longer discloses wireless revenues or wireless EBITDA, hence it’s difficult to get a sense of how its mobile voice, mobile VAS and mobile Internet businesses have performed. There is also less operational data available on the company than their once was.

The company reported India telecom revenues of Rs 4,649.2 crore for the quarter, a minor growth from Rs 4,637.4 crore in the previous quarter. Indian operations represents around 82% of RCOM’s total revenues for the quarter, up from 80% in the previous quarter.

Operational Highlights

– The company’s total connection base reduced by 6.4 million connections to 112.1 million connections for the quarter. While the telco has not provided any specific reason for this decline, it’s possible that this is due to culling of its low revenue earning connections. It had conducted a similar clean-up in November 2013, wherein it had culled 10.5 million inactive connections.

The company had earlier mentioned that it was focusing only on quality additions, which has not only brought down its subscriber acquisition cost but has also improved its churn and increased the contribution from new additions.

– Wireless minutes of usage grew marginally to 102.3 billion for the quarter, up from 101.9 billion last quarter.

– Average revenue per user (ARPU) increased to Rs 128 for the quarter, up from Rs 125 in the previous quarter.

– Revenue per minute for the quarter however declined to Rs 0.432 from Rs 0.435 the previous quarter.

– Voice ARPU increased to Rs 98 from Rs 96 last quarter

– Voice usage per customer/month increased to 296 minutes from 288 minutes, and given the marginal increase in total minutes of usage, it appears that dormant customers or low usage customers were reduced.

– Voice revenue per minute however declined to Rs 0.330 from 0.335 in the previous quarter.

RCOM KPI

Reliance Digital TV

– Reliance Digital TV marginally increased QoQ to 4.8 million subscribers from 4.7 million in the previous quarter. This is the first growth quarter for the company after remaining flat for two consecutive quarters. It had last reported growth in Q1-FY14 when the subscriber base had increased to 4.7 million from 4.6 million the quarter before. The company claims to have 8% share of the DTH market in India.

– Reliance Digital TV is now available available at more than 36,000 outlets across 8,366 towns in the country, down from 37,000 outlets across 8,366 towns in the previous quarter.

– The Set Top Box (STB) failure rate declined to 0.7% from 0.86% in the previous quarter. It claims to have the best failure rate in India and among the best Internationally.

Consolidated Financials

– Total revenue was at Rs 5,670.8 crore, up 5% from Rs 5,403.4 crore the previous quarter.
– Net profit for the period was Rs 155.9 crore, up 43.9% from Rs 108.4 crore the last quarter. This is however almost half of Rs 303 crore profit reported by the telco in the same quarter last year.
– Indian operations generated gross revenues of Rs 4,649.2 crore for the quarter, up marginally from Rs 4,637.4 crore in the previous quarter. EBITDA was Rs 1,658.6 crore, up from Rs 1,606.4 crore the last quarter.
– Global operations revenues increased to Rs 1,260.6 crore for the quarter, up 15.7% from Rs 1,089.8 crore in the previous quarter. EBITDA however declined to Rs 193.4 crore for the quarter, down 19.3% from Rs 239.1 crore in Q2-FY14.
– Global data revenues increased by 26.8% QoQ to Rs 957.3 crore for the quarter, up from Rs 755 crore in the previous quarter.

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