RCom clocks 85% rise in Q3 profit

MUMBAI: Telecom service provider Reliance Communications (RCom) has registered an 85% rise in its net profit for the third quarter ended December 2014, at Rs 201 crore over the same period last year.

The rise was attributed to lower cost of financing debt and an increase in data services.

The Anil Ambani-led company registered a 1.2%  rise in revenues to Rs 4,799 crore over the same period last year.

“RCom continues to be free cash flow positive. RCom generated operational cash flow (EBITDA) of Rs1,851 crore in Q3, paidnet finance charges of Rs652 crore and invested Rs348 crore on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue,” an RCom statement said.

EBITDA stood at Rs 1,851 crore, up 1.3% from Rs 1,827 crore in Q2 and EBITDA margin of 33.8% was maintained at the same level as Q2.

The global operations revenues stood at Rs 1,236 crore, up by 23% from Rs 1,007 crore in Q2 and Q3 EBIDTA stood at R 146 crore, down by 11.5% from Rs 165 crore in Q2.

Last year, RCom raised Rs 6,000 crore from a share sale to institutional investors to reduce its debt. The upcoming spectrum auctions are crucial for the company as it fights to win back airwaves it is currently using in the 900MHz band in seven circles as it doesn't have back up spectrum in other bands to support 2G voice services in these circles.

RCom's ARPU came in at Rs 142, up 3.6% from the second quarter ended September 30.