RCom net slips 84% on revenue fall; 60L subscribers leave

Written by fe Bureau | Mumbai | Updated: Feb 8 2014, 10:08am hrs
A fall in revenue and other income from non-core activities led the Anil Ambani-promoted Reliance Communications to report a 84% sequential drop in net profit at R108 crore for the quarter ended December 31, lagging analysts' estimates.

The previous quarter net profit had also included R441 crore from a write-back provision.

The company clocked in 3.8% lower total income at R5,157 crore from R5,361 crore in the preceding quarter. Other income fell 48% in the quarter to R246 crore.

On a year-on-year basis, the companys net profit rose 2.7% while revenues rose 1.9%. Ebitda margins came in at 34.2% from 35% in the previous quarter.

Despite a fall in revenue and profit, operational metrics fared better this quarter. RPM increased to 43.5 paisa, from 43 paise in the September quarter. We have significantly improved RPM with tariff hikes and strong focus on paid and profitable minutes, the company said in a statement.

In the quarter, RCom lost 60.13 lakh subscribers on net basis till December 31, while Idea Cellular has been the biggest gainer of mobile number portability with net additions of 80.88 lakh users.

On Friday, the RCom scrip fell 1.1% at R125.3 on BSE. The company's scrip has risen 54.2% in value over the last one year.