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Q409: MTNL Wireline, Mobile Revenues Decline; Broadband Subscribers Up; Q4 Net Loss

  The point to notice about MTNLs financials, is how heavily they are dependent on their wireline business for revenues, and how badly it is performing. At Rs. 8458.13 million for the full year ending March 31st 2009, MTNLscellular revenues are a fraction of their wireline revenues at Rs. 36882.68 million. At the same time, both cellular and wireline business have witnessed a decline in revenues - though Cellular remains profitable. The wireline segment reported an EBITDA loss of Rs. 1447 million for the quarter. This essentially means that the company will need to focus on retaining its wireline user base - if not grow it, then at least stem the decline. A growth in MTNLs cellular business is tricky since it operates only in Delhi and Mumbai - both saturated. What can MTNL do? Well, probably merge with BSNL.  Details: Release | Financials Staff expenses for the company also increased during the year by Rs.4611.10 Million, because of a merger of 50% of DA with basic pay which was implemented with effect from 1st January 2007. This has resulted in an increase in allowances, particularly House Rent Allowance (HRA). Broadband And Mobile Performance Broadband: MTNL added 49,716 broadband customers during the quarter, much more than the 42,379 custmers the company added in Q3. MTNLs broadband base grew by 22% during FY09, to a total of 6,95,500 subscribers.  Mobile: MTNL added 2,76,815 mobile subscribers during the quarter, reporting a growth of 29% for the fiscal. This is an improvement over Q3,…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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