Anil Ambani-led ailing telco Reliance Communications (RCom) said that its net loss has come down sharply by over 95% to Rs 130 crore in the third quarter ended December 31, 2017, largely helped by the planned exit from consumer business which comprised wireless, direct to home and PCO. The telco had reported Rs 2,712 crore net loss in the second quarter of the ongoing fiscal.
During the quarter, RCom had announced to exit from RBI’s SDR Framework. RCom on Monday also said that its strategic transformation to cut debts is well underway.
As part of its strategic transformation, RCom had signed an agreement with Mukesh Ambani-led Reliance Jio to sale wireless assets, spectrum (excluding 4G spectrum under sharing), tower business, fiber and Media Convergence Node (MCN) assets. “The asset monetisation is on track to close by March 2018, subject to lenders’ consents and other regulatory approvals,” the telco said
“RCom’s planned exit from the consumer business has achieved more than the desired results. RCom has reduced its net loss by over 95%. RCom expects to deliver even better financial performance in the coming quarters,” Anil D Ambani, Chairman, Reliance Communications Limited said in a statement.
RCom said that its new business portfolio reported consolidated revenues of Rs 1,176 crore and EBITDA of Rs 252 crore. The EBITDA margin was at 21.4%. Indian operations’ revenues and EBITDA stood at Rs 596 crore and Rs 95 crore respectively; while Global business contributed revenues and EBITDA of Rs 709 crore and Rs 157 crore, respectively.
RCom’s new business portfolio comprises Business to Business (B2B) businesses namely Global and Indian enterprise, internet data centres (IDC), global submarine cable network and international long distance voice with ~40,000 Global and Indian customers.