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RCom net plunges 85%

17 Aug 2010
00:00
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Reliance Communications (RCom) has become the latest Indian operator to report a sharp slump in earnings as a result of intense mobile price competition.

The no. 2 Indian telco said forex losses also contributed to the 85% fall in Q2 net to 2.5 billion rupees ($54m), compared with 16.4 billion rupees in the same period last year.

Revenue declined 17% to 51.1 billion rupees, with ebitda down 33% and the ebitda margin off eight percentage points to 31.9%.

Reliance Globalcom, the bandwidth and enterprise services group which has been on the sale block since last year, also posted a weaker result.

Ebitda fell 26% to 3.32 billion rupees, with revenue down 3.5% year-on-year and 10.6% sequentially.

RCom now has 111 million mobile customers, up from 102 million at the end of Q1.

MORE ARTICLES ON EARNINGS, INDIA, RCOM, RELIANCE GOBALCOM

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