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Data business revenues grew 14% YoY ; Growth Services revenue grew 13% YoY; EBITDA increased 31% YoY

Tata Communications, a leading global digital infrastructure provider reported its consolidated financial results for the quarter ending December 31st, 2018.

Mumbai – WEBWIRE

Highlights | Q3 FY2019

  • Consolidated revenue at INR 4,269.5 crore: grew 4.9% QoQ and 3.0% YoY with data services contributing 78% of the overall revenue (+8% YoY).
  • EBITDA at INR 842.6 crore: increased by 33.7% QoQ, 31.0% YoY with a margin of 19.7%.
  • PAT at INR 173 crore as compared to INR 1.6 crore in Q2 FY19.
  • Data business saw strong growth across all parts of the portfolio: Revenues grew 8.4% QoQ and 14.1% YoY. EBITDA at INR 766.7 crore: +42.6% QoQ and +35.2% YoY.
  • Growth Services[1] revenue witnessed solid momentum: +4.6% QoQ and 13.2% YoY. EBITDA was marginally negative due to upfront costs for a large deal and lower usage-based revenue as a result of a traditionally seasonally slower quarter. There is a strong deal pipeline and contracts under execution that give us a strong visibility on future growth.
  • Traditional Services[2] stabilised with revenue growth of 4.2% QoQ. Operator consolidation in India has affected this portfolio. While the revenue impact is largely over, we are still affected by higher access and co-location cost.
  • CAPEX at USD 69 Mn compared to USD 65 Mn in last quarter.

Commenting on the results, Vinod Kumar, MD and Group CEO, Tata Communications said, “The platform business model exhibited by 70% of the world’s top ten valuable companies is synonymous with digital transformation – one that many businesses around the world are making a shift to. Our digital infrastructure services enable this shift and our relevance is reflected in our sales funnel, order book, and in the steady increase in adoption of our growth and innovation services. These trends show that the strategy we have adopted is steering us on the right course towards our financial goals.”

Pratibha Advani, CFO, Tata Communications continues, “We have seen a steady ramp-up in our financial performance over the past year and have delivered strong numbers across all parameters. Our Data business continues to be strong and our Growth Services have been instrumental in our overall revenue growth. Despite operator consolidation headwinds our Traditional services business is steady. As we grow scale we are confident of an upward momentum in our revenue growth and profit trajectory in coming quarters.”

Business highlights | Q3 FY2019

  • Tata Communications brews a hybrid network for Carlsberg to underpin digitised operations and new innovative servicesTata Communications, has deployed a next-generation software-defined hybrid network for Carlsbergto support the digital transformation of the global brewer’s operations in 130 sites across Western Europe. The new infrastructure is a key part of Carlsberg’s Next 2.0 programme, which harnesses the power of the Internet and cloud computing to boost agility, increase efficiencies and reduce costs
  • Tata Communications and NEP pioneer remote production of VIVO Pro Kabaddi League 2018 for Star SportsTata Communications and NEP Broadcast Solutions, a division of NEP Group, together enabled the remote production of VIVO Pro Kabaddi League(PKL) for Star Sports, subsidiary of 21st Century Fox. Now in its sixth season, this is the first time that PKL is being produced remotely by harnessing superfast connectivity
  • VivoHub teams with Tata Communications to launch a one-stop suite of mobile services tailored for Singapore’s migrant workers: VivoHub, the Singapore-based mobile services provider selected Tata Communications, to turn its VivoBee mobile app into a one-stop suite of mobile services designed to meet the needs of Singapore’s one million migrant workers. With the help of the cloud-based Tata Communications MOVE™platform, VivoHub has now become a mobile virtual network operator (MVNO) without having to make capital investments in its own mobile network infrastructure or service management
  • Tata Communications recognised with three awards by MEF: MEF 2018 Awards, the largest awards program in the world focusing on emerging dynamic network services powered by LSO (Lifecycle Service Orchestration), SDN, NFV, SD-WAN, and Carrier Ethernet technologies recognised Tata Communications for: Best Carrier Ethernet Enterprise Application – Financial; Best Carrier Ethernet Enterprise Application – Retail and Wholesale Ethernet Service Provider of the Year
  • World-first technology test by the European Tour and Tata Communications shows how virtual reality could transform golf: The European Tourand Tata Communications completed the world’s first test of live 360° video in 8K Ultra High Definition – the highest resolution in digital television today. The ground-breaking technology test at Sky Sports British Masters shows how the most immersive 360° video and virtual reality (VR) applications could enable fans at home and at the course to engage with the action in new ways.

For more information, download Tata Communications’ FY19 Q3 investor fact sheet here.

[1] 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.

[2] 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

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