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Reliance Q3 profits plunge

Reliance Communications reported a 61% drop in its net profits to $37.69 million for its third fiscal quarter ended Dec. 31, 2011, compared with the same quarter in 2010.

This was the company’s 10th straight quarter of declining earnings. RCom’s total revenues in Q3 stood at $1.02 billion compared to $1.01 billion in the same quarter of the previous year.

The company, India’s second largest mobile operator in terms of users, saw its subscriber base grow from 147 million in Q2 to 150 million by the end of last year.

Media reports in the past have revealed that RCom was in talks with U.S.-based Blackstone and Carlyle on selling its telecom tower business for around $3 billion.

In its efforts to decrease the company’s huge debt burden, RCom had announced last month that it had secured loans worth $1.18 billion from Chinese banks. The company’s net debt at the end of Q3 stood at $7.45 billion.

RCom’s average revenue per user stood at $2.03 at the end of Q3 and its revenue per minute was at 91 cents.

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