Reliance Communications (RCom) announced on Monday that its planned exit from the consumer business has resulted in a sharp drop in the company’s consolidated net loss sequentially to Rs 130 crore for the three months ended December 31, 2017 from a net loss of Rs 2,712 crore in the July-September 2017 period. The company’s consumer business comprised wireless, direct to home and PCO. Commenting on the results, Reliance Communications chairman Anil D Ambani said, “RCom’s planned exit from the consumer business has achieved more than the desired results. RCOM has reduced its net loss by over 95%. RCOM expects to deliver even better financial performance in the coming quarters”. RCom’s new business portfolio comprises business to business (B2B), namely global and Indian enterprise, internet data centres (IDC), global submarine cable network and international long-distance voice, with around 40,000 global and Indian customers. RCom’s new business portfolio reported consolidated revenues of Rs 1,176 crore and Ebitda (earnings before interest, tax, depreciation and amortisation) of Rs 252 crore. The Ebitda margin was at 21.4%. Net profit in the new business was Rs 27 crore for the quarter, up 28.6% over the preceding quarter, the company said in a statement.
The Indian operations’ revenues and Ebitda stood at Rs 596 crore and Rs 95 crore, respectively; global business contributed revenues and Ebitda of Rs 709 crore and Rs 157 crore, respectively. The company statement said that the strategic transformation of RCom is well underway. During the quarter, RCom announced its exit from RBI’s SDR framework. RCom signed the definitive binding agreements for sale of wireless, spectrum (excluding 4G spectrum under sharing), tower, fibre and media convergence node (MCN) assets.
RCom’s asset monetisation is on track to close by March 2018, subject to lenders’ consents and other regulatory approvals, it said.