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Reliance Communications has reported non-voice revenues of Rs 1,087.9 crore for the quarter ended June 30, 2014, registering a 4.7% growth from Rs 1,039.3 crore non-voice revenues in the previous quarter.

The segment accounted for 24.1% of RCOM’s telecom revenues for the quarter, up from 23.5% in the previous quarter. Read about its Mobile Internet business highlights here.

Voice revenues also saw a marginal 1.5% growth to Rs 3,429.3 crore for the quarter, up from Rs 3,378.7 crore in the previous quarter.

It’s worth noting that Reliance Communications changed its segmental reporting in Q2-FY14, since it re-organized its business into two units – India and Global operations. Due to this, it no longer discloses wireless revenues or wireless EBITDA and the operational data available on the company has also reduced.

Indian operations however represents around 81% of RCOM’s total revenues for the quarter, up from 79% in the previous quarter.

Operational Highlights

– The company’s total connection base reduced by 2 million connections to 110.1 million connections for the quarter. Prepaid connections account for 95.1% of the total connections for the quarter, down from 95.3% in the previous quarter.

Wireless minutes of usage grew marginally to 103.1 billion for the quarter, up from 102.3 billion last quarter.

Average revenue per user (ARPU) increased to Rs 136 for the quarter, up 6.25% from Rs 128 in the previous quarter.

Revenue per minute for the quarter increased to Rs 0.438 from Rs 0.432 in the previous quarter. RCOM mentions that this increase was due to tariff hikes and its focus on paid & profitable minutes.

Voice ARPU increased to Rs 103 from Rs 98 last quarter.

Voice usage per customer per month increased to 311 minutes from 296 minutes. This is however probably due to the reduction of dormant customers or low usage customers since the growth in total minutes of usage is only marginal.

Voice revenue per minute increased to Rs 0.333 from 0.330 in the previous quarter.

– Churn rate has notably reduced to 3.6% for the quarter from 5.5% in the previous quarter.

– During the quarter, RCOM launched (pdf) a national roaming offer for postpaid and prepaid GSM customers called “One India, One Rate Plans” through which users have to pay a uniform rate for local, STD and roaming calls across the country.  The telco had mentioned that it was targeting corporate, SME and high-value customers through these plans.

Reliance Digital TV

– Reliance Digital TV marginally increased QoQ to 4.82 million subscribers from 4.8 million subscribers in the previous quarter. The company claims to have 8% share of the DTH market in India.

– Reliance Digital TV is now available available at more than 37,000 outlets across 8,350 towns in the country, as compared to 36,000 outlets across 8,366 towns in the previous quarter.

– The Set Top Box (STB) failure rate declined to 0.57% from 0.7% in the previous quarter. It claims to have the best failure rate in India and among the best Internationally.

RCOM’s QIP Issue: During the quarter, Reliance Communications raised Rs 4,808 crore in its QIP issue. The telco mentions that the promoters have also committed to subscribe company securities for Rs 1,300 crore under the preferential issue.

The proceeds of this QIP and the preferential allotment will be primarily used to repay debt and strengthen its financial position by decreasing its financial leverage.

Global Cloud Xchange raises $350 million: Reliance Communications’s subsidiary Global Cloud Xchange (previously Reliance Globalcom) also raised $350 million from Global Capital Market in fixed rate notes maturing in 2019. Of this, $250 million will be used to refinance Reliance Globalcom BV’s existing bank loan facility while the remaining $100 million will be used for Capex and general corporate purposes.

Consolidated Financials

– Total revenue was at Rs 5,523 crore for the quarter, down 2.61% from Rs 5,670.8 crore in the previous quarter but up 2.1% from Rs 5,412 crore in the same quarter last year.
– Net profit for the period was at Rs 132 crore for the quarter, down 15.3% from Rs 155.9 crore in the previous quarter but up 21.4% from Rs 108 crore in the same quarter last year.
– Indian operations generated total revenues of Rs 4,718.2 crore for the quarter, up 1.5% from 4,649.2 crore in the previous quarter. EBITDA was at Rs 1,693 crore for the quarter, up 2.1% from Rs 1,658.6 crore the last quarter.
– Global operations revenues declined to Rs 1,073.1 crore for the quarter, down 14.9% from Rs 1,260.6 crore in the previous quarter. EBITDA however declined to Rs 170.2 crore from 193.4 crore in the previous quarter.
– Global data revenues declined by 23.9% sequentially to Rs 728.6 crore for the quarter, from Rs 957.3 crore in the previous quarter.

DownloadQuarterly report | Financials