Global Cloud Xchange reports strong quarterly results

Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, has said its financial performance is on track as per the guidance for the financial year 2018-19.

During a call this week with bond investors, the company reported strong cash flow in Q3 FY19 at an increase of 55 per cent over the same quarter a year ago.

In addition, GCX's IFRS EBITDA less indefeasible right of use (IRU) revenue from deferred and one-off, has increased by 17 per cent in the quarter as compared to Q3 FY18.

IFRS EBITDA means earnings before interest, tax, depreciation, and amortisation under International Financial Reporting Standards.

"Our GCX business continues to operate at industry benchmarked levels for growth and profitability, despite the overhang of our parent company Reliance Communications' restructuring," said Bill Barney, Chairman and CEO of GCX.

"Our strong cash flow in FY19 reduces GCX's refinancing risks as our $350M 7.00 per cent senior secured notes come to maturity in July 2019."

As the maturity of bonds remains a priority for GCX, the company has retained Lazard as financial adviser to evaluate refinancing options for the company and ensure that the upcoming maturity is addressed on competitive terms as soon as possible.

GCX owns the world's largest private undersea cable system spanning more than 68,000 route km which, seamlessly integrated with RCom's 200,000 route km of domestic optic fibre backbone, provides a robust global service delivery platform.