Hopeful voices on the Sify Technologies earnings call, but the situation continues to be bleak for the companys consumer services division: the segment reported a decline in revenue of 11% when compared with last quarter, and 27% when compared with the same quarter last year.
A significant majority of Sify’s $32 million in revenues comes from its enterprise division, which accounted for $23.51 million in revenues. Enterprise business grew by 13% year on year, 2% quarter on quarter. The company expects the domestic enterprise business to continue to grow, but at a reduced pace.
Consumer Access Business
What continues to compound Sify’s problems is the continued decline in their access business: their cyber café network saw fewer active subscribers at 594,000, down 46.39% in 9 months, and the number of operations “e-ports” (as they’re now calling their cybercafes), down 13.2% since the beginning of this fiscal. This is despite an expansion of e-ports to 12 new cities, and the conversion of 30 mom and pop cybercafes to e-ports. During the earnings call, the company said that they’re reducing operating costs – bandwidth and manpower and support function costs. Also evaluating some verticals which are not making sense.
Sify is trying to stimulate e-port usage with 15 minute free trial packs. They’re also trying to attract Indic language users for the e-ports, allowing them to send email, chat and browse in 10 Indian languages – Hindi, Punjabi, Bengali, Telugu, Tamil, Marathi, Urdu, Malayalam, Gujarati and Kannada.
On the broadband front, despite a decline subscribers, Sify signed up 15 new broadband partners, and despite this, they registered an 8.1% decline in subscriber base. Sify has also signed up 33 wireless broadband partners across India, and also did a deal with YouTube, providing Indian Idol videos to YouTube.