Reliance Communications (RCom), the mobile telephony arm of Anil Ambani-led Anil Dhirubhai Ambani Group (ADAG), reported a 86% rise in its net profit for the December quarter which stood at R201 crore on the back of a surge in data business witnessed by the company during the qaurter.
The total revenues of the telco, currently the fourth largest in the country in terms of market share, was up 6% to R5,359 crore during the quarter that ended on December 31.
A Bloomberg consensus estimate of RCom’s December quarter results by 30 analysts had pegged the company to report revenues of R5,494 crore and a profit of R192 crore.
RCom said that the total data usage across its network registered a growth of 83.3% during the quarter, on an annual basis, to 7643 crore MB, with average data usage per subscriber standing at 834 MB while its customer base grew by 50% to 3.14 crore including 1.67 3G users.
In comparison, the mobile data revenue at Idea Cellular, which had 82.5 crore data users at the end of December 31 comprising of eight crore 3G users on its network , has grown by 101% while market leaders Bharti Airtel reported a 74.3% increase in its data revenues during the same period. RCom said that its GSM revenue, which was up 4.2% sequentially during the recently concluded quarter, now contributes to 74% to its wireless revenues.
The teleco also registered a 3.4% sequential growth in average revenue per user (ARPU), which stood at R142 during the quarter. It’s RPM also grew to 45.2 paisa from 44.4 paisa, up 1.8% on a sequential basis.
“Our circle-specific ‘Go To Market’ strategy and differentiated data offerings has helped us in acquiring good quality customers in Post-Paid and Corporate segments,” RCom’s chief executive of consumer business, Gurdeep Singh, said in a statement.
The company’s net finance cost fell to Rs652 crore from R749.3 crore a year back. RCom had in May raised R6,000 crore from a share sale to institutional investors to reduce its debt and prepare itself for the upcoming airwave auction.
According to a company spokesperson, RCom also used funds raised from the share sale to institutional investors to repay loans during this fiscal.