Rising staff costs affect MTNL’s profitability

13 Aug 2010

Indian state-owned operator Mahanagar Telephone Nigam Ltd (MTNL) has posted a net loss of INR4.51 billion (USD96.3 million) for the three months ended 30 June 2010, with the operator attributing the loss to increased staffing costs and the one-off payment for 3G and broadband wireless access (BWA) spectrum. Revenues for the three-month period stood at INR10.339 billion, down 4.7% year-on-year from the INR10.854 billion it generated in 1Q 2009, while total expenses rose to INR14.846 billion compared to INR11.58 billion a year earlier. Staffing costs accounted for the bulk of MTNL’s outgoings, rising from INR5.45 billion in 1Q 2009 to INR7.18 billion in the same period a year later.

India,Mahanagar Telephone Nigam Limited (MTNL),



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