Aksh Optifibre, a franchisee of BSNL and MTNL in India, has reported losses (before Interest and Tax) of Rs. 81.58 million for its Services (IPTV and VoIP) segment for the quarter ending June 30th 2009. The losses are up 21.18 percent from 67.32 million reported last quarter, even as the company reported a 52.15 percent increase in revenue quarter on quarter. The company continues to increase its investment in the business, even as it seeks to raise $10-15 million in funding.
Last quarter, Aksh Optifibre MD Dr. Kailash Choudhuri had told MediaNama about plans to raise subscription rates, which might have helped grow revenues. At that point in time, the company had a net ARPU (Average Revenue Per User) of Rs. 150 per customer for its Services (IPTV and VoIP) segment. The company has set itself a target of 80,000 subscribers for IPTV, and 25,000 for VoIP by the end of the 2009-10 fiscal. More from that interview: Part 1, Part 2.
Aksh is one of the franchisees for BSNL and MTNL for two services: VoIP service Pigeon, and IPTV service iControl. It competes with HFCL-related company Smart Digivision (MyWay). The status of other competitors – Time Broadband and BSE listed IOL Netcom, is not known.
Parent Company Financials
On a standalone basis, Aksh Optifibre reported a net loss of Rs. 10.89 million, down significantly from the 130.21 million loss the company had reported last quarter, and the Rs. 98.57 million loss it had reported during the same quarter last year. This is on account of both an increase in net sales, and hence revenues, and a quarter on quarter reduction in expenditure, raw material cost and Employee cost. The company reported a negative EPS of Rs. -0.18 – which has become something of a norm for the company – but an improvement over the Rs. -2.26 EPS reported last quarter.
— Q409 Interview: Aksh Optifibre Looks To Raise $10-15M; Targets IPTV, VoIP OpEx Break Even By FY10 End
— Aksh Optifibre On Time Shift TV, Adverts On IPTV, Raising Rates 20-30%, Carriage Fees
— Q4-09: Aksh Optifibre Reports Loss Of Rs. 67.32M For IPTV & VoIP Biz