R-Com 1Q profit rises 34pc

The Pak Banker - - COMPANIES/BOSS -

Re­liance Com­mu­ni­ca­tions Ltd , In­dia's fourth-big­gest mo­bile phone car­rier, an­nounced a 34% rise in quar­terly profit on Fri­day, but missed an­a­lyst ex­pec­ta­tions as reg­u­la­tory changes hit its core voice busi­ness.

The com­pany's do­mes­tic tele­coms busi­ness was hurt by the reg­u­la­tor's de­ci­sion to re­duce in­ter-net­work call charges and cap roam­ing tar­iffs, Gur­deep Singh, chief ex­ec­u­tive of Re­liance Com­mu­ni­ca­tion's con­sumer busi­ness, told Reuters by tele­phone.

Con­sol­i­dated rev­enue in the first quar­ter ended 30 June was al­most un­changed from a year ear­lier at Rs5,540 crore ($852.53 mil­lion).

The com­pany, con­trolled by bil­lion­aire Anil Am­bani, said its to­tal net profit rose to Rs177 crore for the quar­ter. That was well short of av­er­age an­a­lyst es­ti­mates of Rs269 crore, ac­cord­ing to Thom­son Reuters data.

How­ever, the com­pany con­tin­ued to see strong growth in its data busi­ness as more sub­scribers used smart­phones to ac­cess the In­ter­net and ex­ist­ing cus­tomers used more data.

The pro­lif­er­a­tion of cheap smart­phones, led by Chi­nese brands, has prompted more In­di­ans to use their hand­sets to ac­cess the In­ter­net and de­mand faster down­loads.

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