Tata Communications Delivers Steady Performance in Q1 FY2019

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 Malaysia. 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.
 MyRepublic joins forces with Tata Communications for a new range of mobile services & disruptive plan offerings: Tata Communications is working with the Singaporean TelcoTech platform company MyRepublic as it looks to expand its offering from home broadband to mobile services. The cloud-based Tata Communications MOVE™ platform helps MyRepublic become a mobile virtual network operator (MVNO) without having to make any capital investments in its own mobile network infrastructure or service management.
 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.
 NEP and Tata Communications complete the remote production of VIVO Indian Premier League 2018 for Star Sports: NEP Broadcast Solutions, a division of NEP Group, and Tata Communications, have successfully completed the remote production and broadcast of VIVO Indian Premier League (IPL) for Star Sports, the number one sports broadcaster in India and subsidiary of 21st Century Fox. This marks the first time that a sports series of IPL’s scale has been produced remotely in India by harnessing superfast connectivity.
 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 retail. 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 and Primestream partner to deliver enterprise-grade Media Asset Management in the cloud: Tata Communications, and Primestream®, have joined forces to launch an enterprise-grade Media Asset Management (MAM) solution in the cloud. The new platform enables broadcasters, content owners and enterprises to capture, produce, manage and deliver media content on a global scale.
 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.
 Mahanagar Gas Limited teams up with Tata Communications to deploy 5,000 smart gas meters in Mumbai: Tata Communications is working with Mahanagar Gas Limited (MGL), one of India’s leading natural gas distribution companies, to deploy 5,000 smart gas meters in Mumbai. The new smart meters will give households and businesses unprecedented visibility and control over their gas usage, and enable MGL to enhance operational efficiencies. – CT Bureau