RCom quietly announced its results yesterday [if you run a company and have bad results to announce, do so on a holiday, only if you are worried about huge SELL OFF in your stock] and the numbers look way too ugly. Employees at the Wireless division must be singing Queen’s song – Under Pressure 😉 Look at Wireless ARPU Rs 161 [GSM + CDMA + FWP] it has dropped 24% QoQ. EBITDA down 20% and Net profit has halved. Awesome!!! Quick peek into the results,
- Subscribers rise to 86.11 mn
- Wireless MOU is the only which hasn’t seen sharper decline – at 340 compared to 365 a quarter ago
- Globalcomm Business [Long Distance, Bulk bandwidth, Enterprise Solutions] continues to grow QoQ reporting an EBITDA of INR 5.2 bn. Bharti Airtel is also stepping into this business now.
- Reliance Broadband – Congratulations on wiring 1.07 mn buildings in CBDs of 44 cities with state of the art Metro Ethernet and serving 1.44 mn customers [mere addition of 17,000 customers]. Broadband ARPU increases to 1794 from 1626. They don’t talk anything about Reliance NetConnect broadband+ EVDO broadband which is doing really good according to our channel checks [maybe to suppress competition]
- Reliance BIG TV getting bigger but slower. Has 1.95 mn customers or 13% market share.
With the forthcoming 3G Auction and Reliance most likely to participate in both GSM & CDMA, balance sheet will be stretched and can’t really guess about the results for the next few quarters. But, hey the Show is run by Mr. Ambani who is all set to dump Reliance Infratel to strategic investors or probably an IPO. Stay tuned for more.
Disclosure – Hold negligible interest via stocks in RCom.