World VoIP NewsRCOM net profit tumbles as tariff war takes holdRCOM net profit tumbles as tariff war takes hold

RCOM net profit tumbles as tariff war takes hold


Voip, mobile network, mobile network operator, cellco, subscriptions
Indian mobile network operator Reliance Communications (RCOM) has released its financial results for the three months ended 31 December 2009, posting a lower than expected drop in quarterly net profit.
Indian mobile network operator Reliance Communications (RCOM) has released its financial results for the three months ended 31 December 2009, posting a lower than expected drop in quarterly net profit.

According to the telco, three-month net profit came in at INR11.077 billion (USD239 million), down 21% against the INR14.1 billion it reported for the same period a year earlier. The drop was attributed to a significant decline in call charges on the back of a tariff war that has enveloped the Indian wireless sector, although the drop was offset by lower costs and foreign exchange gains.

Revenue for the operator’s third financial quarter also slumped as a result of heightened competition, with RCOM posting sales of INR53.098 billion, a 9.2% year-on-year decline from INR58.5 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) were 22.9% lower than the corresponding period in 2008 at INR18.126 billion.


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