Sify Reports Net Profit Of $0.12 Million; iWays To Be Relaunched In Small Format; Focus On Services

Sify Technologies has reported revenues of $150.59 million for the financial year ending 31st March 2008 (FY08), 11 percent higher than the previous fiscal. However, net profit was just $0.12 million, despite a one-time benefit of $3.1 million due to change in depreciation policy, which was offset by $3.97 million paid by the company on legal fees. In the previous fiscal, Sify had earned a net profit of $6.25 million. This fiscal, the consumer business saw a decline in profits, at $43.88, down from $52.71 in the previous fiscal.

Portals: Sify revamped its “channels” during the quarter; Sify movies saw a 30 percent increase in page views. The company also offered a fantasy cricket game in partnership with Presino.com, and tied up with reality shows K for Kishore and Champion Chaalbaaz.

iWays/e-Port To Be Re-positioned; Smaller Formats: The iWay cybercafe will be launched as Sify e-Port, and Sify going to look at smaller formats for wider distribution and reach. They’re looking at establishing e-Port Xpress’, which will be a single PC with a kiosk chain offering services like travel ticket booking, bill paytment, mobile recharge and e-commerce transactions. These will be launched in high-footfall zones. In Q4, Sify added 50 new e-ports.

Sify has tied up with the Municipal Corporation of Greater Mumbai (MCGM) – around 200 e-ports will be set up, allowing people to pay property and water taxes, apply for shop renewals, birth certificates and other government services. Sify also tied up with Oxigen, which allows payments for DTH services and cash cards, as well as Reliance Money for financial products. Sify will also enable online shopping by paying cast at e-ports, and has tied up with over 3000 online merchants. Number of iWay subscribers declined – to 718,000 from 1,086,000. The number of iWays increased to 3,887 from 3,638, now covering 180 cities, up from 158 last fiscal.

Broadband: Sify launched Nights Unlimited packages, which probably helped the company retain customers – number of subs grew marginally to 219,000 from 216,000. Average Revenue Per User (ARPU) increased marginally as well to Rs. 336 from Rs. 335.

Note: The rather short Sify earnings con-call was abruptly cut short while paidContent Senior Correspondent David Kaplan was in queue. So our questions remain unanswered.

Release | Financials (not uploaded yet)

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