Mumbai – August 09th 2018 – Tata Communications today announces its financial results for the quarter ended June 30th, 2018.
Highlights | Q1 FY2019
- Data business was steady despite industry headwinds. Quarterly Data revenue grew by 3.9% YoY and declined by 0.3% QoQ, the growth was impacted due to operator consolidation in India, and IndAS 115 Impact.
- Data Services now contribute to 73.8% of the overall revenues up from 64.4% in June 2017.
- Data EBITDA grew by 3.1% YoY and 0.4% QoQ on the back of cost efficiencies. Data EBITDA margin expanded by 10 BPS on a QoQ basis.
- Consolidated revenues declined primarily because of lower volume and price compression in Voice business.
- Despite decline in revenue, EBITDA margins expanded; Consolidated EBITDA for the quarter came in at INR 555.4 Cr. The margins expanded by 30 BPS sequentially and 120 BPS on YoY basis due to cost optimisation and control.
- Change in treatment of one-time service revenue in accordance with IndAS 115 has impacted our data services portfolio including Growth Services.
- Traditional data services revenue was impacted by operator consolidation but witnessed a strong EBITDA margin of 30.8% for the quarter and expanded by 210 BPS on a YoY basis and 40 BPS on a QoQ basis on the back of sustained productivity initiatives.
- Growth Services EBITDA loss declined to USD 9.3 Mn as compared to USD 13.7 Mn in Q4.
- Capex for the quarter came in at USD 72.3 Mn, the capex was higher because of expansion in India access network.
- Consolidated PAT loss narrowed to INR 58.5 Cr. as compared to a loss of INR 121 Cr. in Q4 FY18.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Tata Communications’ clear focus on enabling customers’ digital transformation through integrated, globally-managed solutions is gaining real traction in the enterprise ecosystem. At the same time, we continue to innovate and scale our products and platforms. In doing so, we have kept at the front face of the changing technology landscape, and are transforming ourselves from a pure connectivity provider to a next-generation digital infrastructure provider. This transformation is improving our agility and efficiency already and will accelerate the deployment of our solutions and services. Going forward, our focus will be on bundling our services, further increasing product penetration, reskilling our employees and continuing to build operational efficiencies.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “EBITDA margin has expanded on the back of sustained productivity initiatives despite battling industry headwinds. The change in portfolio mix in favour of data services and the continued focus on productivity and digital transformation initiatives will continue to drive an improvement in our margin profile.”
Business highlights | Q1 FY2019
- Frost & Sullivan Recognises Tata Communications for its Remarkable Contribution to Enterprise Services at its 2018 India ICT Awards: Tata Communications received top honors at Frost & Sullivan’s 2018 India ICT Awards, with five awards in the Enterprise Telecom Services category and one award in the Enterprise Infrastructure category. Tata Communications took center stage at the awards ceremony and received three service provider awards for (1) Enterprise Data (2) Conferencing and (3) Enterprise Telecom—Large Enterprise Segment, along with awards for IoT New Product/Service Innovation Award; Third-Party Managed Hybrid Cloud Provider of the Year and SDWAN (Software defined WAN) New Product/Service Innovation award.
- Tata Communications launches service for Microsoft Teams Direct Routing: Tata Communications announced that it is one of the launch partners for the new Microsoft Teams Direct Routing capability. Calling In Microsoft Teams can be delivered over Tata Communications’ Tier-1 global network, helping enterprises worldwide offer their employees a reliable, high-quality collaboration user experience.
- Tata Communications helps Singapore IoT innovator W-Locate grow internationally while reducing capex by 35%: W-Locate, the Singapore-based Internet of Things (IoT) start-up, has selected Tata Communications to accelerate its international growth. W-Locate provides real-time location-based information to enterprises across Singapore, Hong Kong, Jakarta, and It is now looking to extend its presence to South Korea, Taiwan, Thailand, and other Asian countries by harnessing Tata Communications’ IoT and private cloud computing capabilities.
- Tata Communications provides secure and seamless connectivity to BlaBla Connect OTT subscribers: Tata Communications has been selected by global OTT solutions provider BlaBla Connect to underpin a first-of-its-kind OTT service that integrates its existing mobile wallet and voice services together with borderless connectivity. As a result, BlaBla Connect subscribers will enjoy peace of mind while on the move through seamless access to over 64 million secure hotspots in over 160 countries – integrated through one mobile application.
- Tata Communications helps drive kids’ smartwatch maker Doki Technologies’ international expansion: Tata Communications is working with Hong-Kong based start-up Doki Technologies to support the company’s expansion in the US and Canada, Europe, and Southeast Asia. The recently unveiled dokiWatch S will come with a Tata Communications MOVE™ SIM built in. So, when a parent or child switches on the dokiWatch S for the first time, the smartwatch is instantly connected to the Internet, anywhere in the world.
- Tata Communications and DTTech build new cloud-based network for African mobile and IoT providers: Tata Communications and South African ICT services provider Dreamtime Technologies (Pty) Ltd. (DTTech), have joined forces to build a new cloud-based virtual mobile network to serve African mobile and IoT providers. It will act as the foundation for next-generation mobile and Internet of Things (IoT) services in sectors such as healthcare, transport, mining, agriculture, banking, and DTTech will also use the new cloud-based network to give mobile network operators (MNO) the flexibility to introduce new services and extend their geographical reach, which will help them attract new customers and generate new revenue streams without large upfront investments.
- Tata Communications spearheads Centre for Digital Transformation with the Confederation of Indian Industry (CII): Tata Communications, selected as the principal partner by the Confederation of Indian Industry (CII) to help organisations in India unlock the true benefits of digital technologies. The newly formed CII – Tata Communications Centre for Digital Transformation will act as a catalyst to accelerate digital change for the nation by bringing the industry together to spur adoption of mobile, cloud, Internet of Everything and champion the cultivation of new talent that will drive innovation forward.
An Investor fact sheet providing a detailed analysis of the results for the quarter ended June 30th, 2018 has been uploaded on the Tata Communications website and can be accessed at:
 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.