Tata Comm reports third straight FY loss

Dylan Bushell-Embling
24 May 2012
00:00

India's Tata Communications has recorded its third straight year of annual net losses, after its fourth quarter loss widened by over 66%.

The subsea cable and tier-1 IP network operator reported a net loss for the year of 7.95 billion rupees ($142.1 million), up from 7.77 billion rupees in FY11.This marks the company’s third annual loss in a row, Reutersreported.

For the fourth quarter, Tata Comm's loss grew to 2.61 billion rupees from 1.56 billion rupees in the same quarter a year earlier.

But the company, part of the Tata Group, revealed that gross group revenues for the year increased nearly 16% to 141.96 billion rupees. Consolidated ebitda meanwhile grew 46%.

Revenue from global voice services increased 16% in FY12, while income from global data services swelled by 18%.

Tata Comm's South African venture Neotel, which has been a drain on the company's finances, ended the year ebitda positive for the first time.

Revenue from Tata's start-up business – which comprises primarily of the 56% stake in Neotel – also nearly tripled to 17.38 billion rupees.

In March, Tata Comm launched two new subsea cables in Eurasia and the Middle East, revealing it has now completed the first ever round-the-world fiber ring.

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