RCom Financial Results:Banking On GSM And Broadband Business


RCom result
Reliance Communications (RCom) has posted a 20% rise in revenues for FY08-09 to Rs.22941 crores compared to Rs.19068 crores last year.

The net profit grew 9.4% YoY to touch Rs.5908 crores against Rs.5401 crores last year.

The quarterly results showed a Topline growth of 5% to Rs.6123 crores and bottomline touched Rs.1454 crores.

The segmented revenue contribution of businesses(pre- elimination):

Business Revenues (in Rs. Crs.) growth in %
Wireless 17368 14.2
Global 6776 23.8
broadband 1787 41.3

The average revenue per user (ARPU),fell 10.75 per cent to Rs 224 (from Rs 251), while minutes of usage (MoU) dipped 9.26 per cent to 372 per user (410 earlier) during the quarter.

Reliance Communication currently has 73 million wireless subscribers and enjoys a market share of 18.8%. The Pre-Paid subscribers constitutes 93.5% of the total subscriber base.

They also enjoy 60% market share for data card and USB modem market for laptops and PC.They are also largest PCO operator with over 50% market share.

Reliance Big TV currently has 1.5 million subscribers, about 12% of the DTH market in India within a short span of launch.

They also propose to use Wi-Max technology to provide last mile to enterprise customers in more than 100 cities across pan-India by FY10.They currently serve more than 850 of the top 1000 enterprise and SME’s in India.

The results fail to meet much expectations as RCom could have shown better growth due to diversity in businesses and global scale of operations.In future there growth drivers would be the GSM and Broadband business.The company has spend huge capex to roll out this businesses and currently has also added some 1 million buildings across India for their broadband initiative.


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