The profit of the infrastructure company was halved

The financial statements of Infrastructure Communications Company show that the company’s profit in 2022 has almost halved compared to the previous year.

This sharp decrease is due to the significant increase in the cost of operating income and other expenses of this company against the small increase in operating income and other income of the infrastructure company.

According to the IDEA, the financial statements of Infrastructure Communications Company have been published on the Kodal website, which shows a decrease in the net profit of this company in the financial year ending on March 29, 2022. The profit of this company has decreased by more than 475 billion tomans compared to the previous year.

We also see a significant increase in administrative and general expenses and other expenses. This is despite the fact that the increase in other incomes of this company does not compensate for the increase in expenses, and finally we see that the profit of the infrastructure company has decreased from one thousand billion tomans in 1400 to 572 billion tomans in 2022.

The need to adjust accounts

In addition to these reductions, in the report of the legal auditor of the infrastructure, there are clauses that directly affect the profit of this company. Including paragraph 3 of this report, which refers to the dispute between the infrastructure company and Sadid-Razavi consortium (Alcatel upgrade project).

Also, in paragraph 4 of this report, it is emphasized that contrary to the accounting standards, 286 billion and 100 million Tomans from the income of providing broadband services, providing infrastructure for conversation and providing ancillary services of the communication infrastructure of the previous year (2021) were included in the account of operating income of 2022 is. Also, the results of the financial dispute with the Iran Telecommunication Company in the amount of 79 billion and 100 million tomans have been allocated to the account of other operating expenses, and if the accounts are adjusted for this reason, the heading of trade accounts receivable and accumulated profit will be reduced to the amount of 207 billion tomans.

Sharp increase in costs

In the financial statements and the audit report of the infrastructure company, this company has provided explanations about why its costs increased in 2022, which, apart from the increase in employee salaries and general inflation, we can point to interesting cases in the purchase of foreign bandwidth, as well as the effect of the increase in the exchange rate did.

In the cost of operating income section, it is stated that due to the increase in bandwidth demand, the company’s expenses have increased, which mainly include payments to UAE companies of more than 3,200,000 euros, Italy more than 564,000 euros, Russia more than 615,000 Euro, Oman will spend more than 4 million 500 thousand euros and Qatar more than 706 thousand euros to buy 5 thousand 460 gigabits per second of international bandwidth capacity.

Due to the fact that during the period of the 13th government, the amount of international bandwidth of Iran was not announced from these financial statements, it can be concluded that Iran’s bandwidth at the end of last year was at least 5,460 gigs. In the report published by the Ministry of Communications in the last days of its work, the international broadband capacity in Iran at the end of June 1400 was mentioned as 5,489 gigabits per second.

Biggest customers

The main income of the infrastructure company is related to the provision of broadband services, which is more than 4 thousand 402 billion tomans. In the second place is the provision of infrastructure for establishing conversations, which is more than 505 billion Tomans.

The most important customers of the infrastructure company are mobile and fixed operators, in this field the first mobile alone provides more than 40% of the infrastructure company’s revenues. After that, Irancell is in the second place with more than 26% and Asiatech is in the third place by a great distance.

The important point is that the infrastructure revenues from Mobile First and Irancell in 2022 compared to the previous year were accompanied by a decrease, which is probably related to the disruption of mobile internet in the second half of last year.