Mumbai, India, February 03, 2016: Tata Communications has announced its financial results for the quarterand nine months ended December 31st 2015.
Highlights for Q3 FY2016
- Consolidated revenue stood at INR 50,995 million (USD 774 million @average INR/USD exchange rate of 65.90), up 3.8% YoY
- Consolidated EBITDA at INR 7,598 million (USD 115 million) resulted in EBITDA margin of 14.9%
- Consolidated PAT of INR 219 million (USD 3 million)
Highlights for 9M FY2016
- Consolidated revenue of INR 1,54,094 million (USD 2,380 million @average INR/USD exchange rate of 64.75), up 2.1% YoY
- Consolidated EBITDA was at INR 22,670 million (USD 350 million) resultingin EBITDA margin of 14.7%
The Core business (comprising of data and voice segments) reported yet another quarter of strong performance in revenues and profitability. Q3 FY16 Core business revenues increased by 6.1% while EBITDA was up 2.1% YoY. Q3 FY16 Core business PAT at Rs.910 million (USD 14 million), up 134.1% YoY.
Data has continued to drive Core business performance, with both network and managed services offerings showing enhanced traction. Enterprise business has grown by 21% YOY for the 9 month period on the back of strong demand for digital transformation solutions layered on top of our global infrastructure.Q3 FY16 data revenue increased by 16.7% YoY and EBITDA margins for the corresponding business stood at 21.7%, an expansion of 70 bps YoY. The data servicesportfolio coupled with improved profitability in the payment services business has been the key growth driver. The new services portfolio is also beginning to gain momentum.
Global voice segment continues to be adversely impacted by structural industry-level headwinds namely the growing acceptance of Voice over Internet Protocol (VoIP) delivered by over the top carriers (OTTs) coupled with a steep decline in tariffs.
Commenting on the Q3&9M FY16 results, Vinod Kumar, MD and CEO Tata Communications, says, “We are happy to have delivered yet another quarterof steady growth despite volatility in the macro-economic environment. We have seen a 16.7% YoY increase in Q3 data revenues. Data especially cloud enablement and collaboration services will continue to be the growth driver in the coming quarters.”
Commenting on the results, Pratibha K. Advani, CFO Tata Communications, says, “Our Q3 performance reflects continued business momentum in line with our strategic direction and investments.Our data business offering is growing at a significant pace ahead of the industry. This strong momentum in our data segment, both in traditional and growth services is driving our business performance. The robust and predictable data performance has provided headroom to absorb volatility in the voice segment.”
- Tata Communications positioned as a Leader in the Gartner Magic Quadrant for Network Services, Global for the third consecutive yearTata Communications has been positioned by Gartner as a ‘Leader’ in its 2016 Magic Quadrant for Network Services. 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’, 2016 marks the third year in a row that Tata Communications has been positioned in the Leader quadrant.
- Tata Communications launched its flagship Global SIP Connect service as a white-label solution for service providers:The Session Initiated Protocol (SIP) trunking offering will enable service providers to expand their voice services to customers through Tata Communications’ global network reach and unified communications portfolio without major up-front investment in building their own solution. In turn, their business customers will benefit from a new way to transform their voice network with a potential 55% network cost saving.
- SimbaNET drives business growth in East Africa with Tata Communications: SimbaNET, a member of Wananchi Group and a leading provider of internet connectivity to businesses in Eastern Africa is collaborating with Tata Communications, to provide a portfolio of technology and communication solutions for enterprises’ growing ICT requirements in East Africa.
- Tata Communications’ data centre earns CEEDA Gold for energy efficiency: Tata Communications announced that its data centre in BandraKurla Complex (BKC), Mumbai, had been recognised with the Certified Energy Efficient Datacenter Award (CEEDA) Gold Level Certification that honours energy efficient data centres globally. The BKC data centre is the first colocation facility in Asia to earn the CEEDA Colo Gold Level Certification. It is a fully secure facility offering domestic and international colocation and data centre value added services over a gross built up area of 160,000 sq. ft. The BKC data centre addresses four environmental aspects – CRAC/HVAC, humidity, temperature and fire suppression and implements each to ensure optimum efficiency and a lower cost of ownership.
- Tata Communications and Net Insight make live sports and music events a truly real-time, interactive and social TV experience: Tata Communications announced that it had joined forces with Net Insight, a specialist in the transport of live, interactive and on-demand content, to enable media organisations to manage and deliver live OTT content globally, in complete sync across all devices, for the first time.
- Tata Communications and Formula One Management successfully test the first ever delivery of a live track-side feed on an OTT platform: Tata Communications completed another successful proof of concept with Formula One Management during a recent Grand Prix, where a new technology test delivered a live trackside feed from the Singapore track to Formula One Management’s Technical HQ in Biggin Hill, UK – with no time lag between the live broadcast and the footage viewed on the app. Also known as an over-the-top (OTT) service, this test demonstrated how the Formula 1 fan experience could be enriched through new technology.The live OTT video feed was delivered using Tata Communications’ global fibre network and the company’s Media Ecosystem.
- Tata Communications debuts ultra-low power connectivity solution to pave the way for the Internet of Things in India: Tata Communications announced that it had successfully conducted trials of new Low Power Wide Area Network (LPWAN), based on LoRaTM technology for connected devices and cutting edge Internet of Things (IoT) applications across Mumbai and Delhi. These trials will bolster successful deployment of IoT applications in India, as Gartner forecasts that there will be 4.9 billion connected things globally in 2015, reaching 25 billion by 2020.
- Tata Communications’ IZO Private Cloud puts the CIO back in control: Tata Communications launched the IZO Private Cloud service to bring CIOs unprecedented control over their public and private clouds and their entire data centre estate. The solution is designed to empower enterprises to connect to the world’s biggest clouds, and to build a truly hybrid, high-performance IT infrastructure, where different cloud, colocation and managed hosting environments work together as one.