MTNL FY profits fall 39%

26 Apr 2006

State-owned telco Mahanagar Telephone Nigam Ltd (MTNL), which offers fixed and mobile services in Mumbai and Delhi, has posted a 39% decline in its fiscal full year net profit. Income for the twelve months ended 31 March 2006 fell to INR5.787 billion (USD128.4 million), down from INR9.484 billion a year earlier. Revenues were down 5% to INR57.856 billion, from INR 60.841 in 2004/05. Chairman and Managing Director RSP Sinha said lower tariffs, the loss of the access deficit charge (ADC) subsidy and increased interconnect charges with sister company BSNL all contributed to the fall in profits and revenues.

At the end of March 2006 MTNL had 3.877 fixed line customers (including WiLL-F users) and 105,665 WiLL-M subscribers. Broadband customers reached 211,935 and the mobile subscriber base reached 1.941 million. Monthly fixed line ARPU fell from INR819 in 2004/05 to INR805 a year later, whilst mobile ARPU fell from INR358 to INR280 for pre-paid customers and INR482 to INR308 for contract users.

India, Mahanagar Telephone Nigam Limited (MTNL)