RCOM reports financial results for Q1FY11

August 14, 2010

Source: MM Network

By: Media Mughals

Reliance Communications (RCOM), one of the leading providers of integrated telecommunications services in the country, has reported its financial results for the first quarter ended June 30, 2010.

The Company has posted a marginal rise in its revenues by 0.3% reaching at Rs 5,109 crore against Rs. 5,093 crore in the corresponding quarter last fiscal.

EBITDA also increased from Rs 1,602 crore in Q1FY10 to Rs. 1,632 crore in the current quarter, increasing by 1.9%.

Whereas PAT (Profit after Tax) for the telco plunged from Rs 1,220 crore last year to Rs. 251 crore in the current year. The decreasing in the PAT is due to notional provisioning on forex and other factors.

The subscriber base for RCOM stood at 111 million, up by 39.2% from the 80 million customers in the corresponding quarter last year.

During the quarter RCOM made significant announcements of alliance and collaborations expanding the reach of its various business verticals.

The Company acquired Digicable, India’s largest Cable TV service provider, in an all-stock deal of the new entity. The merged entity has been named “Reliance DigiCom” which would operate as an integration of RCOM’s DTH, IPTV and Retail Broadband Operations, with Digicable. Through this acquisition ADAG group marked foray in cable TV service and has created India’s / Asia’s largest, and the World’s 5th largest company, to offer the full-suite of Triple Play services – Digital TV, Ultra High-Speed Broadband and Voice.

RCOM Board also agreed for an Rs 50000 crore deal between Reliance Infratel and GTL Infrastructure to create the world’s largest independent telecom infrastructure company, neither owned nor controlled by any telecom operator.

Furthermore the Board approved for induction of strategic / private equity investors into the Company for an upto 26% equity stake. Also, RCOM also gears for creation of world’s second largest application store in alliance with GetJar.

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