R-Com 1Q profit rises 34pc
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.