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MTNL losses widened to Rs 768.32 crore during Q2 FY17

State-owned telecom operator MTNL has reported a net loss of Rs 768.32 crore for the quarter ended September 30th (Q2 FY17). Losses widened from Rs 718.02 crore in the preceding quarter, and from Rs 730.35 crore in the same quarter last year. The overall operational revenue for the company decreased marginally by 2.08% to Rs 729.20 crore for the quarter, from Rs 744.72 crore in the previous quarter. In the same quarter last year, MTNL posted overall revenues of Rs 774.18 crore.

Since Q1 FY15, only once has MTNL posted a profit, in Q4 FY16. That profit, of Rs 174.58 crore, was because MTNL surrendered 800 Mhz of CDMA spectrum for Rs 428.95 crore.

Basic Services revenue

Revenues from Basic (Fixed line and Broadband) services continues to dominate MTNL’s revenues, with the segment reporting revenues of Rs 573.69 crore for the quarter, down 5.95% from Rs 609.99 crore in the same quarter last year, and down 6.37% from Rs 612.74 crore in the previous quarter.

Basic services contributed for 78.67% of MTNL’s overall income for the quarter, as compared to 82.3% contribution in the preceding quarter. The company’s loss before tax for the basic services segment increased marginally to Rs 380.15 crore for the quarter, from Rs 332.25 crore loss in the same quarter last year.

Cellular Services revenue

Revenues from Cellular services declined significantly to Rs 127.81 crore for the quarter, down 21.59% from Rs 163.01 crore in the previous quarter. Cellular services accounted for 17.52% of MTNL’s net income for the quarter, as compared to 17.09% in the same quarter last year. For most telecom operators, it is the other way around: cellular services revenues are higher than fixed line.

The segment reported a loss before tax of Rs 147.73 crore for the quarter, compared to the loss of Rs 116.90 crore in the preceding quarter. In the same quarter last year, cellular service losses stood at Rs 142.74 crore.

MTNL tie ups

To allows users to pay their broadband and landline bills online, MTNL tied up with payments platform FreeCharge last month. This facility is currently available for MTNL users in Mumbai and Delhi circles. FreeCharge users can also pay their monthly MTNL bills automatically using Auto Pay, which is FreeCharge’s recently introduced recurring payments feature.

In October, state telcos BSNL and MTNL had signed a deal with the Union Tourism Ministry to equip 100 tourist destinations across the country with high speed public WiFi hotspots. The deal has a contract period of 7 years, and the Tourism Ministry will bear the operational costs for the first 3 years.

Download: Financials

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