Reliance Communications (RCOM) today revealed its strategies have assisted the telecom operator to reduce net loss to Rs 130 crore in Q3 fiscal 2018 against net loss of Rs 2,712 crore in the same quarter previous fiscal.
Anil Ambani-promoted Reliance Communications had decided to stop its consumer telecom services including wireless, DTH and PCO business to improve its financial conditions that were affected by the entry of Reliance Jio. During the process, Reliance Communications has also slashed several thousands of jobs.
“RCOM’s planned exit from the consumer business has achieved more than the desired results. RCOM has reduced its net loss by over 95 percent. RCOM expects to deliver even better financial performance in the coming quarters,” said Anil Ambani, chairman of Reliance Communications.
Reliance Communications is now focusing on 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.
RCOM’s new business reported consolidated revenues of Rs 1,176 crore and EBITDA of Rs 252 crore with EBITDA margin of 21.4 percent.
Revenue from Indian operations was Rs 596 crore with EBITDA of Rs 95 crore. Revenue from global business was Rs 709 crore with EBITDA of Rs 157 crore.
As part of the company strategy, RCOM signed agreements with Reliance Jio Infocomm, a company promoted by Mukesh Ambani, to sell wireless, spectrum (excluding 4G spectrum under sharing), cellular tower, fiber and media convergence node (MCN) assets.