Reliance Communications announces financial results for the quarter ended 31 DEC 2006

MUMBAI: Reliance Communications Limited today announced

its unaudited consolidated financial results for the quarter ended

31 December 2006. The highlights of financial performance are:

Net Profit of Rs. 924 crore (US$ 209 million), higher by 198% compared to Net Profit of Rs. 310 crore (US$ 70 million) in the corresponding quarter last year

EBITDA at Rs. 1,527 crore (US$ 346 million), growth of 76% over the corresponding quarter last year

Revenue growth of 26% at Rs. 3,755 crore (US$ 851 million) from Rs. 2,991 crore (US$ 678 million)

EBITDA margin expands to a record 41% from 29%, with strong contributions across all businesses ? Personal, Global and Enterprise.

Shareholders Equity crosses Rs. 20,000 crore (more than US$ 4.5 billion). Net Debt to Equity Ratio further reduces to 0.07:1, providing substantial borrowing capacity to fund future growth

Capex for FY2007 now expected at over Rs. 7,700 crore (US$ 1.75 billion) Commenting on the results, Mr Anil Dhirubhai Ambani, Chairman, Reliance Communications Limited said:

?We have delivered another quarter of strong revenue and EBITDA growth across all our business segments. Net profits have increased by 3 times in the past year.

This performance has lifted Reliance Communications into the select group of companies with annualised EBITDA of well over Rs 5,000 crore (US$1.1 billion), EBITDA margins above 40%, Shareholders Equity of over Rs 20,000 crore (US$4.5 billion), and a Stockmarket Value of nearly Rs 94,000 crore (over US$21 billion). Reliance Communications is now one of Asia?s most valuable telecom companies.

We remain focused on further strengthening our position within India?s rapidly growing telecom sector, achieving profitable growth, and delivering long term value for our 2 million shareholders.?



The Board of Reliance Communications has approved the global listing of FLAG Telecom.

Reliance Communications has turned around the performance of FLAG Telecom over the past year and aligned it with the Indian franchise.

FLAG Telecom sees enormous growth potential in bridging the digital divide and had recently announced its nearly Rs 7,000 crore (US$1.5 billion) Next Generation Network project which on completion will make the company the largest fully IP-enabled global undersea cable system operator touching 80% of the world population.

The potential global listing of FLAG Telecom would highlight the hidden value created in its business and provide further focus on the unique growth opportunities.


The Board of Reliance Communications noted the shareholder approval given to the scheme of demerger of the wireless towers business. The Board approved Reliance Telecom Infrastructure to examine options for unlocking the value of its assets.


PERSONAL (wireless)

Reliance Communications added a record 4 million wireless customer (net) during the quarter, compared with 2.1 million in the corresponding quarter last year.

At end-December 2006, the Company had over 30 million wireless customers on its network, representing a market share of 20.5% of the All India wireless market. It maintained market share of net wireless customer additions at 20.2% in Q3 FY2007.

Revenues of the Personal business increased by 39% to Rs. 2,752 crore (US$ 624 million) from Rs. 1,981 crore (US$ 449 million). EBITDA increased 62% to Rs. 1,029 crore (US$ 233 million) from Rs. 636 crore (US$ 144 million).


FLAG Telecom won major new contracts worth more than US$ 100 million (about Rs. 440 crore) during Q3 FY2007.

In the increasingly competitive ILD market, Reliance Communications maintained its leading market share of 40%.

Reliance India Call has recently been introduced in Australia and the worldwide access of our Reliance Global Call service has been extended to 200 countries.

EBITDA increased by 68% during the quarter to Rs. 355 crore (US$ 80 million). The Global business achieved higher profit margins, with an increased contribution from the portfolio of data services. EBITDA margins increased to 27% from 15%.

ENTERPRISE (broadband)

The number of access lines increased to 530,000 in Q3 FY2007 from 217,000.

Leveraging the 20,000 kms of metro fiber optic cables, the number of buildings directly connected to the Reliance network increased by 110,000 in the past quarter to 379,000.

Major new orders booked by the Enterprise business during the quarter increased by over 25%. Reliance Communications has 50% market share of new Enterprise business acquisitions.

Enterprise achieved revenue growth of 149% to Rs. 316 crore (US$ 72 million) and an EBITDA margin of 47% in Q3 FY2007.

* * * * *


Reliance Communications Limited is part of the Reliance ? Anil Dhirubhai Ambani Group.

Reliance Communications is India?s largest integrated communications service provider in the private sector with over 32 million individual consumer, enterprise, and carrier customers.We operate pan-India across the full spectrum of wireless, wireline, and long distance, voice, data, and internet communication services. We also have an extensive international presence through the provision of long distance voice, data and internet services and submarine cable network infrastructure globally.

Latest Reads
Viacom18 confirms the departure of Raj Nayak

In an official statement released to the media, Viacom18 confirmed the departure of Raj Nayak, the media network’s Chief Operating Officer.

Television TV Channels GECs
Sony Pictures Networks India gears up for the India tour of Australia with engaging programming initiatives

For the year ending high-octane cricket series between India and Australia, Sony Pictures Networks India (SPN), will be undertaking several initiatives to enhance the viewing experience and increase engagement with cricket enthusiasts across the nation.

Television TV Channels Sports
Sony Entertainment Television appoints Sagnik Mukherjee as AVP marketing

Sagnik Mukherjee is set to join Sony Entertainment Television as associate vice president marketing, a source close to the development confirmed to

Television TV Channels People
Viacom18 COO Raj Nayak quits

Colors' Big Boss has quit, according to media reports. We are talking about Viacom18 COO Raj Nayak, who is the brain behind the most popular reality show Big Boss.

Television TV Channels GECs
Monuments Turn Red, As National Geographic Raises an Alarm for Planet Conservation

Glaciers are melting, sea levels are rising, pollution in various parts of the world is at its peak, and tonnes of plastic waste is in the oceans.

Television TV Channels English Entertainment
Network 18's Joy Chakraborthy steps down

Forbes CEO and Network 18 President(Revenue) Joy Chakraborthy has stepped down from his role, according to media reports.

Television TV Channels News Broadcasting
Sony BBC Earth hosts the extraordinary Natural History Producer and Global Storyteller, Jonny Keeling, in India

Sony BBC Earth, India’s No. 1 factual entertainment channel and home to the most iconic and premium content, continues to deliver to its promise of making the viewers ‘feel alive’.

Television TV Channels Factual @ Discovery
‘Ab Jungle meinhoga Dangal’ with the Hindi Television Premiere of Jumanji: Welcome to the Jungleon November 24th at 8pm only on &pictures

Ever wonder how it feels to be inside a game and play the character you choose? In the brand-new adventure Jumanji: Welcome to the Jungle, the tables are turned as four teenagers in detention are sucked into the world of Jumanji.

Television TV Channels Movie Channels
Broadcasters see regional adex space growing

Now that the Hindi fervour has died down, broadcasters and advertisers have latched on to the regional segment. It's no wonder that the adex in the space is expected to grow as well. According to the global ad growth forecast of GroupM, India’s adex is expected to grow at 14.2 per cent compared to...

Television TV Channels Regional

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories