RCom reports Q3 net loss of Rs 531 cr, blames competition & shutdown of profitable CDMA biz

Anil Ambani-led Reliance Communications (RCom) reported a net loss of Rs 531 crore in the third quarter, while its revenue declined 4.3% at Rs 4,922 crore in the quarter, against Rs 5,142 crore in Q2. The telco said that it posted net loss on account of an unprecedented competitive intensity, complete shutdown of its profitable CDMA operations, and due to an increase in amortisation and interest expense aggregating Rs 278 crore on account of capitalisation of 850 MHz spectrum liberalisation fee.


RCom’s EBITDA in the third quarter went down 21.8% at Rs 1206 crore from Rs 1,542 crore in the second quarter.
The telco’s revenue from India operations went down 4.9% at Rs. 4,267 crore from Rs 4,488 crore in the second quarter. Its revenue from global operations stood at Rs. 1,132 crore, up 4.0% from Rs. 1,089 crore in Q2.

The telecom operator said that it is expecting “significant long-term benefits from its unique access to Reliance Jio’s extensive and state-of-the-art 4G LTE network at minimal capex and opex.”

RCom added that Jio’s 4G network is enabling it to provide differentiated and best-in-class 4G LTE services to its valued subscribers.

RCom posted RPM at 40 paisa, down 10.5% sequentially. The telco’s minutes of usage stood at 102.1 billion, up 4.3% sequentially, while ARPU went down 0.6% quarter-over-quarter at Rs 154
The total data customer base is 32 million including 23.4 million 3G/4G customers in Q3. The telco said that the total data traffic at 93.7 billion MB is down over 10% Q-o-Q. The traffic has decreased mainly due to severe competitive intensity, it added.

During the quarter, RCom launched the ‘149 Unlimited’ Calling Plan, offering customers unlimited calling talk-time to any phone on any telecom network across the country, including STD calls, at just Rs 149 per month. It also rolled out a new post-paid plan named the JALSA plans targeted to acquire high value Voice & 4G Data customers.

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43 Comments on "RCom reports Q3 net loss of Rs 531 cr, blames competition & shutdown of profitable CDMA biz"


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Vivek Pawar
February 13, 2017 10:46 pm 10:46 PM

They fooled Customer by promising 1GB free every Month on recharge of 3001 /- & on upgrading network they took U-turn . Customer will surely give them the result they deserve !!

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Parsi Zoroastrian
February 12, 2017 6:40 pm 6:40 PM

Jaisi karni waisi bharni. We have not forgotten the 2 month long pain given by RCOM for their 4G upgrade fraud. RCOM, such a poorly managed company didn’t even know that they had high paying CDMA customers not GSM users. The only option now left for RCOM is to give back entire infrastructure to Mukeshbhai and exit telecom forever.

February 12, 2017 11:01 pm 11:01 PM

You are absolutely right, Rcom was foolish to close RCDMA when it was running well . it should have improved and pumped in more money into RCDMA insread it closed down and harassed lot of its customers , to hell with RCOM , please close it down and give your spectrum to RJIO

February 13, 2017 12:04 pm 12:04 PM

To LAUNCH Jio, RCom’s CDMA shutdown was necessary. This is an odd thing to say because CDMA was declining in profits QoQ as seen in quarterly reports. RCom is doing well on 4G because they shut CDMA….