Press Releases

Tata Communications buoyed by global digitisation drive – races ahead as the digital infrastructure provider of choice

Registers PAT of INR 101 mn | EBITDA improved by 12%

Mumbai, India - February 08, 2018

Tata Communications today announces its financial results for the quarter and nine-months ended December 31st 2017.

 

 Highlights |Q3 FY2018

  • Data business revenues improved by 6.8% YoY, contributed to by a 5.7% YoY growth in Traditional Services[1] and a robust 38.5% YoY improvement in Growth Services[2]
  • Consolidated EBITDA grew by 12% on a YoY basis with a margin expansion of over 230 basis points as compared to the corresponding quarter last year. This expansion was posted on the back of a strong delivery by the Traditional Services which recorded robust margins of 31.6% this quarter
  • Q3 recorded a consolidated PAT of INR 10 Crore on the back of improved operating performance which saw substantially increased margins and higher PBT
  • Cloud services continued its upward trajectory across geographies synchronised with the digitisation drive across organisations globally. Traditional Services like VPN, ILL and Ethernet saw double-digit, industry-leading, growth this quarter as we continue to gain market share
  • Revenues from data businesses contribute to 70% of the overall revenue and 88% to the EBITDA

 

Consolidated Nos. INR Crore QoQ Growth YoY Growth USD Mn QoQ Growth YoY Growth
Gross Revenue 4,114.6 (2.4%) (5.6%) 635.2 (3.2%) (1.9%)
EBITDA 612.8 8.6% 11.9% 94.6 7.8% 16.5%
EBITDA margin 14.9% 150 Bps 230 Bps 14.9% 150 Bps 230 Bps
PAT 10.1 1.7    

 

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “We have delivered a robust performance across our portfolio in the period and have improved operating performance across our international geographies as well as in India. The run rate and mix of our data services clearly reflects our evolution from a traditional telco to our current standing in the market as a digital infrastructure provider with a rich portfolio of value added services.”

 

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “We are pleased with the industry-leading growth of our data services portfolio. This growth is driving a significant margin expansion of 230 BPs YoY which has resulted in improved profitability this quarter. Our results also reflect a healthy growth of 38.5% in our growth services portfolio which now contribute to 20% of the data business revenues.”

 

Business highlights | Q3 FY2018

  • Tata Communications’ Ultra Live Video Delivery Network ensures fans are able to enjoy immersive entertainment experiences on any device in sync with live TV broadcast: Tata Communications, announced that it has been chosen by Ultracast to power the international expansion of the company’s 360° video and virtual reality (VR) platform. The company will use Tata Communications’ Ultra Live Video Delivery Network (VDN) to bring this content from events globally to fans’ smartphones, tablets and VR devices in complete sync with live TV broadcasts.
  • Thai start-up ‘DRVR’ partners with Tata Communications to revolutionise Asia’s first smart fleet network: International fleet management application provider, DRVR has selected Tata Communications as its global IoT connectivity partner to help achieve its objective of making Asia’s vehicle fleets the smartest and most cost-efficient in the world. Leveraging Tata Communications’ mobility solution- MOVE™, DRVR can convert information collected from vehicles across Thailand, Myanmar, Philippines and Indonesia into actionable insights to help drive efficiencies and improve cost savings through smarter fleet management.
  • Cloudera and Tata Communications launch big data platform to tackle data deluge: Cloudera, (NYSE: CLDR), and Tata Communications, announced a strategic partnership that enables enterprises to unleash the power of their data to fuel business growth. Leveraging Tata Communications’ global cloud footprint, underpinned by the world’s largest Tier one network, and Cloudera’s machine learning and analytics capabilities offer enterprises to quickly capture, store and analyze data in various formats and across multiple sources with their managed services for Big Data offering.
  • Tata Communications’ new Asia chief to enable accelerated business growth for enterprises in the region: Tata Communications announced the appointment of Andrew Yeong as its head of sales for Asia region. In his new role, Andrew will be responsible for the growth of Tata Communications’ business across all industry verticals, focussing on providing transformation services to large corporations in the region. He will also support the company’s strategic efforts in growing and maintaining its leadership position in the network infrastructure market, as well as build deeper penetration with its cloud enablement and cybersecurity solutions.
  • Tata Communications makes its debut in the Gartner Magic Quadrant for Managed Hybrid Cloud Hosting, Asia/Pacific: Tata Communications, has been positioned for the first time by Gartner in its 2017 Magic Quadrant for Managed Hybrid Cloud Hosting, Asia/Pacific. Designed by Gartner to examine how effectively providers meet the current needs of business in terms of both ‘completeness of vision’ and ‘ability to execute’, 2017 marks Tata Communications’ debut in the report.
  • The European Tour joins forces with Tata Communications to usher in a new digital era for golf: The European Tour has partnered with Tata Communications, to build a best-in-class global technology platform that will help to underpin the digital transformation of the sport and help attract new, younger fans to the sport. As the Official Global Connectivity Supplier of the European Tour, Tata Communications will distribute the video feeds from 47 European Tour tournaments in 30 countries and across five continents to 40 broadcasters using its global superfast network and Media Ecosystem, reaching close to half a billion golf fans.
  • Tata Communications extends emerging markets reach to Brazil: Tata Communications has expanded to Brazil, connecting Latin America’s largest economy with international financial capitals such as New York, London, Mumbai and Singapore. By linking the new Seabras-1 cable system with Tata Communications’ global network, the company will harness its emerging markets expertise and digital transformation enablement capabilities to support the economic growth of Brazil and the rest of Latin America.
  • Tata Communications’ IZO™ Private Cloud achieves highest level of Singapore’s Cloud Service Provider (CSP) certification: Tata Communications’ IZO™ Private Cloud service has been awarded the Multi-Tier Cloud Security (MTCS) Level 3 certification[3], which is the highest level of Singapore’s Cloud Service Provider (CSP) certification. MTCS Level 3 certification is designed to serve regulated client organisations with specific requirements and stringent security requirements for their data hosting. The Singapore instance of the IZO™ private cloud is now able to service these organisations, host high impact data and offer the strictest security norms.
  • tv links with Tata Communications to deliver video seamlessly to any device across the globe: Motorsport.tv has entered the partnership to power the international growth of the network’s internet television platforms. Tata Communications will harness its global reach, media capabilities and motorsports expertise to bring the latest updates from major motorsport events seamlessly to Motorsport.tv viewers around the world.

 

An Investor fact sheet providing a detailed analysis of the results for the quarter and nine-months ended December 31st 2017 has been uploaded on the Tata Communications website and can be accessed at:

https://www.tatacommunications.com/wp-content/uploads/2018/02/tcom-quarterly-factsheet-q3fy18.pdf

 

 

 

[1] Traditional Services include Virtual Private Network, International Private Line, Internet Leased Line, Ethernet, Internet Protocol –Transit, Inmarsat, Content Delivery Network, National Private Line, Mobility, Data Centre, Unified Collaboration and Conferencing

[2] Growth Services include IZO™, Managed Hosting, Managed Security Services, Broadcast, Video Connect, SIP Trunking, Global Hosted Contact Center, Video Streaming, Mobile New Services, Healthcare, Media Management and Mobile Innovation

[3] Certified by the Certification Body of TÜV SÜD PSB Pte Ltd

Ends...


Media Contact:

Divya Anand
Tata Communications
+94 (0) 713361744
divya.anand@tatacommunications.com

Investor Contact:

Vipul Garg
Hill & Knowlton Strategies
+91 11 66257431
vipul.garg@tatacommunications.com



About Tata Communications


Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global network to deliver managed solutions to multi-national enterprises and communications service providers.


The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to more than 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and colocation space worldwide.


Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice communications. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.


www.tatacommunications.com




Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.




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