To say that it’s been a good quarter for IOL Netcom would be an understatement – the IPTV company which is also in the WiMax and Voice over IP businesses, for the first time in many-a-quarter turned a profit. IOL Netcom has reported a net profit of Rs. 73.11 lakhs, coupled with a substantial jump in revenues – at Rs. 14.19 crores, up from Rs. 3.04 crores last quarter. Remember that they had reported a net loss of Rs. 9.68 crores last quarter.
The reason for this substantial jump in revenues is not known, but going through IOL Netcom’s annual report, I did notice that they were owed Rs. 5.18 crores last fiscal. We’ve contacted IOL Netcom for more colour on this substantial increase in revenues. Remember that Lehman Brothers owns around 1.46% in the company, while Videocon has picked up around 14% in the company – 12.26% through Shree Dhoot Trading & Agencies Ltd. and 1.83% through Videocon Realty and Infrastructure Ltd.
QIB Placement IOL Netcom intends to raise money through Qualified Institutional Buyers, and has convened a board meeting for the same on November 12th. The amount to be raised is not mentioned. According to a report last month, IOL was in the process of raising money via a GDR (Global Depositary Receipt) issue, but there’s no update on that, and the share swap (no cash) deal with a local cable operator. IOL has only around 10,000 IPTV subscribers, and wanted to leverage the cable infrastructure
Developments during the quarter
— MTNL Franchise Agreement: IOL Netcom, during the quarter, had signed a franchise agreement with telecom operator MTNL to provide CDMA services in Mumbai and Delhi – much like the agreement that Virgin Mobile has signed with Tata Teleservices.
— Alottment of 60 lakh equity warrants of face value Rs. 10 each at a price of Rs. 120 to “specified investors” — Formation of a Committee for the acquisition of a company in the wirline / wireless services & infrastructure with last mile access