Another IPTV Provider looking to raise money, after Aksh announced its plans: IOL Netcom is raising funds through preferential basis and/or non-convertible debentures, it has informed the BSE. This is, however, is not new: last year, there were reports of IOL looking to raise money through QIB placement.
For the year ending March 31st, 2009, the company posted a net loss of Rs. 140.46 million over revenues that rose 77.2% to Rs. 371.2 million from last fiscal. In FY 08, losses amounted to Rs. 246.84 million. In the two previous quarters, IOL Netcom made a turnaround in fortunes and posted a net profit of Rs. 10.1 million in Q3 and Rs. 7.31 million in Q2.
Expenses during the year rose by 8% to Rs. 506.2 million from last fiscal. Basic Earnings per share have risen from -Rs.10.11 to -Rs.5.14. Besides IPTV, IOL Netcom provides Voice over IP services and is also a WiMAX player. Its website shows signs of abandonment with no updates since December 2008, broken links and even the registration module for IPTV service is kaput.
Questions for IOL Netcom
Post the announcement of the Q3 results, MediaNama had contacted IOL Netcom, requesting information on rollouts and details of how the company managed to turn a profit. The other listed IPTV company – Aksh Optifibre – hasn’t broken even yet. IOL Netcom Director AS Oberai declined to comment, suggesting we talk to company CFO Hemang Dave. Dave declined to comment immediately, insisting that we email our questions to him. We never received a response to the following questions, sent to him on Jan 29, 2009:
— What is the status of IOLs IPTV services – where have the services been launched and how many subscribers does the company have?
— IOL turned a profit for the last 2 quarters – what has changed, and which sectors (IPTV, Broadband) have contributed how much to revenues
— Which service providers does IOL have franchise agreements with for IPTV, and what is the status of the rollout? What are the rollout plans like?
— Status of CDMA services franchise agreement with MTNL
— Comments on the issue of fully convertible debentures to HT Media Ltd
— For what will the money being raised from QIBs be used, and what is the cost of rollout of IPTV services?
— How much of your cost is content licensing?
We have sent the same questions again to Dave, requesting an interview.