Growth services witness robust 25% growth Y-O-Y led by Cloud enablement services
Mumbai (BSE), July 25, 2017
Mumbai (BSE) – July 24, 2017
Tata Communications announces its financial results for the quarter ended June 30th 2017.
Highlights | Q1 FY2018
- Data services revenues improved by 4.6% YoY. In USD terms Data revenue growth improved by 8.5% YoY. Growthservices continue with their upward trajectory growing at 25% YoY. Traditional services grew by 7% YoY.
- Core revenues grew 0.4% QoQ reflecting impact due to currency translation; in USD terms core revenues improved by 4.4% QoQ. EBITDA was higher by 12.6% QoQ with margins at 13%, up 140 bps.
- On a YoY basis core revenues declined, as expected, primarily due to de-growth in the Voice business; in-line with the industry trends.
- Free Cash flow after capex, interest and tax was at INR 107 Crore (USD 17 Mn); a 45% increase YoY.
Core Nos.* | INR Crore | QoQ Growth | YoY Growth | USD Mn | QoQ Growth | YoY Growth |
Gross Revenue | 4310 | 0.4% | (3.3%) | 668 | 4.4% | 0.3% |
EBITDA | 559 | 12.6% | (15.6%) | 87 | 17.2% | (12.5%) |
EBITDA margin | 13.0% | 140 Bps | (190 Bps) | 13.0% | 140 Bps | (190 Bps) |
PAT | 32 | 5 |
* All the prior period numbers have been re-cast without data centre to enable like to like comparison.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Digitalisation continues to create new avenues for growth across our entire business portfolio, and our investments in digital competencies hold us in good stead for the future. Having established a broad and deep portfolio that enables digital and global transformations, we are now pivoting our customer engagement around business themes rather than just technology. We are also proactively investing into futuristic workflows and systems that will boost our productivity and enhance the customer experience. These investments will positively impact the medium to long term margins.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “Our free cash flow generation remains robust notwithstanding investments into new growth services and for our in-house business transformation projects. We are at the forefront of digital transformation and fully geared to capitalise on this opportunity.”
Business highlights | Q1 FY2018
- Tata Communications ushers in a new era for VICE Media with global cloud-based media platform: Tata Communications is building for VICE Media, a high-performance, completely cloud-based platform for global media asset management, storage, content contribution and distribution. It will enable VICE Media to capture content anywhere in the world, and quickly make it available to hundreds of editors in production centres in New York City, Los Angeles, Washington DC, Toronto and London, for publishing and broadcasting across VICE Media channels.
- Tata Communications and Mercedes-AMG Petronas Motorsport explore the potential of the Internet of Things to boost team performance: Tata Communications launched the 2017 F1® Connectivity Innovation Prize and unveiling the first challenge of this year’s competition – with a focus on the Internet of Things (IoT). The first challenge, set by Mercedes-AMG Petronas Motorsport, asks F1® fans and technology enthusiasts to come up with ideas for IoT solutions that could be used by the team to deliver peak performance at each Grand Prix.
- Tata Communications and Alibaba Cloud partner to empower and transform global businesses: Tata Communications announced a partnership with Alibaba Cloud, the cloud computing arm of Alibaba Group, to enable customers from over 150 countries, including India, to connect to Alibaba Cloud’s ExpressConnect via Tata Communications’ IZO™ Private Connect service.
- Tata Communications expands IZO™ Private Cloud footprint in Europe, Middle East and Asia Pacific to address enterprises’ data sovereignty concerns: Tata Communications launched three new nodes for its IZO™ Private Cloud service to support enterprises’ hybrid cloud adoption while ensuring regulatory compliance. The new private cloud nodes in Germany, United Arab Emirates (UAE)1 and Malaysia enable CIOs to gain unprecedented control over all their applications by creating a truly hybrid, high-performance IT infrastructure where different cloud, colocation and managed hosting environments work together as one.
An Investor fact sheet providing a detailed analysis of the results for the quarter ended June 30th 2017 has been uploaded on the Tata Communications website and can be accessed at: FIN-investorfactsheet-PDF-20170724
Ends…
Tata Communications was the Official Connectivity Provider of Formula 1® between 2012 and 2019. Tata Communications was also the Official Managed Connectivity Supplier to Mercedes-AMG Petronas Motorsport, and Official Digital Transformation Partner to ROKiT Williams Racing until the end of the 2019 season.
FOR IMMEDIATE RELEASE |
PRESS RELEASE |
---|---|
Natalie Chak Tata Communications +44 (0)7833 043 779 natalie.chak@tatacommunications.com |
Neil Thomas Hill & Knowlton Strategies +44 207 413 3454 neil.thomas@hkstrategies.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 and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
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 over 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation 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. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
https://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.
www.tatacommunications.com | @tata_comm
http://tatacommunications-newworld.com | www.youtube.com/user/tatacomms
© 2017 Tata Communications Ltd. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries.