Category: Cable TV

SITI Networks elevates Anil Kumar Malhotra to CEO

MUMBAI: SITI Networks has elevated Anil Kumar Malhotra as the new CEO of the company. Malhotra’s appointment will be effective from 1 September. He joined SITI Networks as chief operating officer in 2011.

Malhotra holds over 34 years of rich experience across the cable television industry with deep expertise across various facets of media distribution like technology, content, regulatory compliances and sales operations.

He also played a critical role in the successful implementation of new tariff order framework at SITI Networks and was instrumental in the transformation of SITI Networks from an analog player to a digital multiple system operator.

Malhotra had various successful entrepreneurial stints, including serving as president (North India) for In-Cable. He realised the potential of cable TV & distribution, long before the emergence of MSOs, and ventured into hardware manufacturing for the industry and later setup his multiple Master Control Rooms & Head-ends.

He has been an active member of various government & industry bodies including MIB task forces for implementation of DAS regulations, new tariff order, etc.

August 30, 2019
IMCL sees 11% revenue growth in FY19

MUMBAI: IndusInd Media & Communications Ltd (IMCL) is hoping to achieve a positive profit after tax for the financial year 2019-20. In FY 2019, the company’s subscription revenue grew by 11 per cent and subscriber base by 10 per cent over FY 2018.

Hinduja Venture Chairman Ashok P Hinduja commented in its annual report 2018-19, “IMCL along with its subsidiary companies has an active subscriber base of 5.1 million. This is expected to grow substantially in the coming years. With all these positive developments, IMCL is expected to return a positive profit after tax in the years ahead.”

During the year gone by in 2018-19, the NXT Digital and IN Digital – distribution platforms of IMCL have taken giant strides not only in terms of the subscriber base but also in terms of its subscription revenue.

Sharing his view on the TRAI new tariff order, Hinduja said, “Mandating a minimum assured distribution fee to the distribution platforms like IMCL from the broadcasters, NTO brings in a new regime that largely benefits digital platform operators (DPO) like IMCL to retain an operating margin as against the previous model wherein IMCL was effectively subsidising the broadcaster costs to the consumers.”

He further said that the successful implementation of the new tariff order by IMCL while simultaneously ensuring that there is least disruption to customer service has been very well recognised by the industry and all its stakeholders.

During the year 2018-19, the company introduced hybrid high definition set top boxes in the market for the first time. It also introduced VAS services channels – branded “NXT Services” across multiple genres and for all age groups – a bouquet which is very popular among consumers.

IMCL has already signed up half a million subscribers on managed services model whereby small DPOs can operate profitably by using the infrastructure of IMCL on an opex model.

During the year under review, IMCL posted a positive operating profit in the last quarter of the year. The company also informed that it has achieved a collection to billing ratio at 99.5 per cent which is highest in the industry.

August 26, 2019
Hinduja Ventures Ltd announces reorganisation of its media & communications business

MUMBAI: The Board of Directors of Hinduja Ventures Limited ("HVL") at its meeting held today have accorded In-Principle approval for reorganization of Media and Communications undertaking of Induslnd Media & Communications Limited ("IMCL"), into HVL subject to all statutory/ regulatory approvals and approval of the shareholders.

The media business of IMCL consists of digital content distribution business carried out through multiple platforms including satellite and fibre and also the Broadband business carried out through its subsidiary.

IMCL – A handsome turnaround

IMCL, the only integrated digital platform operator ("DPO") in the country, with delivery via digital cable, satellite ("HITS" or Headend-ln-The-Sky) and fibre; has seen a handsome turnaround in the quarter due to the successful implementation of the New Tariff Order by the Company from February
2019 till date and holds very good promise for improved operating results going forward. The
Company also benefitted from successfully converting its customer base to a fully prepaid model.

"IMCL has posted a positive Operating profit and positive Profit after tax for the first quarter of the current year. We expect this positive trend to continue, buoyed by cutting-edge technology that will spawn a series of innovative products and solutions, a robust inclusive model with all our cable operator partners and a customer-centric approach"says Vynsley Fernandes, Chief Executive Officer, IMCL.

The successful implementation of the New Tariff Order by IMCL; while simultaneously ensuring that there is least disruption to customer service has been very well recognized by the industry and all stakeholders. In appreciation of this, IMCL has won two prestigious awards at the Annual BCS Ratna Awards- "Best NTO implementation by a DPO" and "Best LCO and Consumer management services."

Highlights of IMCL:

IMCL has many firsts to its credit. Some of these are listed below:

•   Only MSOJDigital Platform Operator (DPO) to operate in all the states and union territories of the country.
•   HITS satellite services connected to 1,500+ physical points-of-presence in India – covering
2,000+ pin codes across the country.
•   Only DPO to have a dual digital delivery platform – Digital caple through fibre and HITS
through satellite.
•   First DPO to introduce the prepaid collecQon model- 99.5% of the customer base on prepaid
•   The Company has:
o    Introduced multiple types of Set Top Boxes (STBs) ranging from low-cost Standard Definition (SD) STBs to Hybrid High Definition (HD) STBs, that allow conversion of any TV set into a "Smart" TV.
o    Introduced VAS services channels – branded "NXT Services" across multiple genres and for all age groups – a bouquet which is very popular among consumers
o    Became the provider of most number of channels across DPOs – offering 730+ TV
channels in key cities and 700+ TV channels via satellite on the HITS platform.
o    Introduced the "Managed Services" Model whereby small MSOs and LCOs are able to operate profitably by using the infrastructure of IMCL on an opex model. IMCL has already signed up half a million subscribers on this model -only DPO providing this service as of now
o    Successfully transitioned to the New Tariff order
o    Is the DPO with the highest number of packages for customers to choose from in the NTO regime – 800+ packages; including specially curated packages in 11languages.

This reorganization is in line with the growth plans of IMCL – as a leading player in the digital space;
and is expected to be value accretive to all stakeholders.

August 13, 2019
Tamil Nadu CM drops minister from cabinet due to cable TV tariff spat

MUMBAI: While Tamil Nadu’s state-run cable operator Arasu Cable revised down its subscription rates recently, the move has led to a political crisis in the state. Chief Minister Edappadi K Palaniswami has dropped former IT minister Dr Manikandan from his cabinet.

After the recent announcement of price revision, Manikandan accused Palaniswami of unilaterally taking the decision of reducing the cable TV monthly subscription as per a report from The Hindu. “I was not consulted. The chief minister announced it. A meeting will happen soon,” Dr Manikandan said. He also alleged that the government declined to fund the government cable network Arasu Cable.

“When we approached the government to bear the cost of STBs, the then finance secretary and present chief secretary K Shanmugam declined to accept. As a result, we repaid ₹400 crore of the total debt (towards providing free STBs) of Rs 619 crore from our (TACTV) revenue. When we were in distress, neither the government nor anyone came to our rescue. If the government comes forward to provide the balance of Rs 219 crore or gives the amount as loan, we can even fix the Arasu Cable tariff at ₹100 a month,” he said.

On July 22, Animal Husbandry minister Udumalai Radhakrishnan was appointed as the chairman of the cable network which did not make Manikandan happy either. He also pointed out the conflict of interest by saying that the latter should first shift two lakh subscribers who are currently under his cable TV network Akshaya Cable to Arasu Cable.

Radhakrishnan recently said that the 11 lakh STBs provided by Arasu Cable which had been switched off, needed to be brought back online as Arasu Cable had now lowered its tariffs.

August 9, 2019
GTPL Hathway acquires SCOD18 Networking to expand footprint in Maharashtra

MUMBAI: Cable TV and broadband service provider GTPL Hathway has acquired 100 per cent shares of SCOD18 Networking Pvt Ltd on Monday. The company informed the exchanges about the acquisition in a filing on Tuesday.

While the company has a strong presence in Gujarat, the acquisition has been done with an object of enhancing its footprint in neighboring state Maharashtra. SCOD18 which has now become wholly-owned subsidiary of GTPL Hathway, had a turnover of Rs 305.64 million as on 31 March.

GTPL Hathway posted a net profit of Rs 29.4 crore for the quarter ended 30 June as against a net loss of Rs 28.1 crore in the trailing quarter ended 31 March. EBITDA was up 6 per cent at Rs 115.6 crore compared to Rs 103.6 crore in Q4 FY19.

August 6, 2019
Arasu Cable revises subscription rates

MUMBAI: Tamil Nadu’s state-run cable operator Arasu Cable has revised down its subscription rates, with effect from 10 August. Under the new subscription rate, package of 190 channels will be available for Rs 154.

“Based on requests from the people, the cable television tariff for Tamil Nadu [except Vellore] under Arasu Cable has been fixed at Rs 130, plus GST,” Tamil Nadu Chief Minister Edappadi K Palaniswami said.

After the new price regime kicked in at the beginning of this year, Arasu Cable had to revise its packages. It had three packages — a basic package at Rs 120 plus GST with all free-to-air (FTA) channels, a package at Rs 200 plus GST and another that offered 191 channels at Rs 220 plus GST.

The state-run operator has distributed 35.12 lakh set-top boxes free of cost to its subscribers till date. But recently, it found that out of the 35 lakh STBs that were distributed, only 24 lakh were active. The sudden increase in pricing caused the churn in customers. To prevent the churn, the new move has been taken.

August 2, 2019
Cable TV subscription drives Hathway revenue growth in Q1 FY 2020

BENAGLURU: Hathway Cable and Datacom Ltd (Hathway) reported 38 percent growth in subscription revenue from its cable TV business (CATV) for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q1 2019. CATV subscription revenue for Q1 2020 grew 28 percent as compared to the immediate trailing quarter Q4 2019 (q-o-q). CATV subscription revenues for the period under review, the corresponding year ago quarter and the immediate trailing quarter were Rs 216.7 crore, Rs 157.4 crore and Rs 169.9 crore respectively.

Placement revenue in Q1 2020 grew 5 percent y-o-y to Rs 78.7 crore from 75.2 crore and grew 35 percent q-o-q from Rs 58.2 crore. Activation revenue declined 13 percent y-o-y to Rs 15.3 crore from Rs 17.6 crore and declined 3 percent q-o-q from Rs 15.7 crore. The split of placement and activation revenues for iCATV and Broadband business has not been mentioned.

Overall, CATV business revenue in Q1 2020 grew 24 percent y-o-y to Rs 315.97 crore from Rs 254.91 crore and grew 27.1 percent q-o-q from Rs 248.51 crore. The company reported an operating profit (segment result) of Rs 2.82 crore from CATV business for Q1 2020 as compared to an operating loss of Rs 31.16 crore in Q1 2019 and an operating loss of Rs 333.89 crore for Q4 2019. The high losses for Q4 2019 were due to exceptional items to the extent of Rs 410.74 that included impairment of trade receivables, advances and exposure to certain entities including joint ventures, write down to property plants and equipment and expenses relating to equity infusion. The exceptional items for Q4 2019 were a one time expense and had non-routine material impact on financial statements says the company. Q1 2020 is the first full quarter after the implementation of Telecom Regulatory Authority of India (TRAI) New Tariff Order.

Comparatively, the broadband business revenue of the country’s now fourth largest wired broadband internet services provider grew 3.1 percent y-o-y and 1 percent q-o-q. Hathway reported Rs 133.81 crore, Rs 129.8 crore and Rs 132.43 crore as broadband revenue for Q1 2020, Q1 2019 and Q4 2019 respectively. Hathway reported less than half the operating profit (segment result) from its Broadband business at Rs 9.14 crore for Q1 2020 as compared to an operating profit of Rs 19.89 crore for Q1 2019. The company had reported an operating loss of Rs 18.11 crore for the immediate trailing quarter from its broadband business.

The company says that it has deployed 60 lakh (6 million, 0.06 crore) set top boxes and claims 8.4 lakh (0.84 million, 0.084 crore) broadband internet subscriber base at the end of the quarter under review in an investor presentation. Comparative broadband subscribers for Q1 2019 and Q4 2019 were 7.7 lakh (0.77 million, 0.077 crore) and 8.1 lakh (0.81 million, 0.081 crore) respectively. While data consumption per user has gone up, broadband ARPU has declined in Q1 2020 to Rs 650 in Q1 2020 from Rs 690 in Q1 2019 and from Rs 662 in Q4 2019. It says further that FTTH markets will be leading growth in customer acquisition and that its focus will be on doubling net additions momentum Q2 2020 onward.

Let us look at the other numbers reported by the company

All numbers in this report are consolidated unless stated otherwise.

Hathway’s total operating revenue for Q1 2020 grew 16.9 percent y-o-y to Rs 449.78 crore from Rs 384.71 crore and grew 18 percent q-o-q from Rs 381.04 crore. Total income or revenue for Q1 2020 grew 29.2 percent y-o-y to Rs 506.68 crore from Rs 392.18 crore and grew 20 percent q-o-q from Rs 422.10 crore. The company reported a loss of Rs 9.38 crore for Q1 2020 as compared to a loss of Rs 51.72 crore for Q1 2019 and profit after taxes (PAT) of Rs 6.61 crore in Q4 2019.

The company reported EBITDA growth of 15 percent y-o-y in its investor presentation for Q1 2020 to Rs 104.38 crore (23.2 percent margin) from Rs 90.5 crore (23.5 percent margin) and growth of 37 percent q-o-q from Rs 76.1 crore (20 percent margin). Simple EBITDA calculated from the company’s numbers reported to the bourses was Rs 93.14 crore (20.7 percent margin) for Q1 2020 which was 30.6 percent higher y-o-y than Rs 71.32 crore (18.5 percent margin) reported for Q1 2019 and was 11.2 percent more than the Rs 83.73 crore (22 percent margin) for Q4 2019.

Total expenditure in Q1 2020 grew 16.1 percent y-o-y to Rs 519.61 crore from Rs 447.52 crore and grew 19.2 percent from Rs 435.97 crore.

Pay channel cost during the period under review declined 15.5 percent y-o-y to Rs 130.06 crore from Rs 153.88 crore and declined 1 percent q-o-q from Rs 131.41 crore. Employee cost in Q1 2020 grew 15.6 percent y-o-y to Rs 23.63 crore from Rs 20.45 crore and grew 6.3 percent q-o-q from Rs 22.22 crore. Operational cost in Q1 2020 grew 29.6 percent y-o-y to Rs 77.13 crore from Rs 59.51 crore and grew 16.5 percent q-o-q from Rs 66.23 crore. Finance cost grew 58.7 percent y-o-y to Rs 81.79 crore from Rs 51.53 crore and grew 47.7 percent q-o-q from Rs 83.28 crore. Other expenses in Q1 2020 grew 58.2 percent y-o-y to Rs 125.82 crore from Rs 79.55 crore and grew 62.5 percent q-o-q from Rs 77.45 crore.

July 16, 2019
GTPL cable TV business pushes revenue, profits up in Q1 2020

BENGALURU: GTPL Hathway Ltd (GTPL) reported 31.9 percent growth in revenue for the quarter ended 30 June 2019 (Q1-2020, quarter or period under review) and almost three times the operating profit for its cable TV business (CATV business) as compared to the corresponding year ago quarter Q1 2019. The company’s consolidated revenue from operations for the quarter under review grew 50 percent year on year (y-o-y) while consolidated total income expanded 30.3 percent in Q1 2020 as compared to Q1 2019. Consolidated profit after tax more than doubled (grew 164.3 percent) to Rs 33.23 crore in Q1 2020 as compared to Rs 12.57 crore in Q1 2019.

GTPL reported consolidated revenue from operations at Rs 445.47 crore in Q1 2020 as compared to Rs 296.91 crore in Q1 2019. Consolidated total income for the period was Rs 454.30 crore as compared to Rs 296.91 crore in the corresponding year ago quarter. CATV business revenue was Rs 344.16 crore in Q1 2020 as compared to Rs 260.93 crore in Q1 2-19. CATV business reported operating result of Rs 30.49 crore for the period under review as compared to Rs 10.17 crore for Q1 2019.

The company’s internet services business (Ex-EPC Project numbers) revenue grew 9.2 percent to Rs 39.29 crore in Q1 2020 from Rs 35.98 crore in Q1 2019. The segment incurred a small loss of Rs 0.14 crore in Q2 2020 as compared to an operating profit of Rs 2.40 crore in the corresponding year ago quarter. The company had been awarded Package B of the prestigious Bharat Net Phase-II project from the Gujarat Fibre Grid Network Ltd under Digital India Initiative (EPC Project) last year. GTPL reported revenue of Rs 62.02 crore an operating profit of Rs 2.89 crore from the EPC Project.

GTPL reported revenue (Ex EPC Project) of Rs 391.1 crore, which was 29 percent more y-o-y. The company says in an earnings release that its CATV subscription revenue increased 47 percent y-o-y to Rs 247.2 crore. EBITDA Ex EPC Project increased 32 percent y-o-y to Rs 110.3 crore. Ex EPC Project PAT doubled to Rs 26.6 crore.

On the operational front, GTPL says that it has seeded 200,000 STBs and added 300,000 digital paying subscribers in Q1 2020. The company says that it had 97 lakh (9.7 million, 0.97 crore) digital paying subscribers as on 30 June 2019. Phase-wise seeding as on June 30, 2019 for Phase 1, Phase 2, Phase 3 and Phase 4 were at 8.6 lakh (0.86 million, 0.086 crore); 22.6 lakh (2.26 million, 0.226 crore); 30 lakh (3.00 million, 0.3 crore) and 35.8 lakh (3.58 million, 0.358 crore) respectively.

Further, GTPL says that two thirds or 10,000 of the 15,000 new broadband internet subscribers were FTTX subscribers. Consumption per customer at 120 GB/month as on June 2019 was up from 38 GB/month in March 2017, or data consumption increased 3x over two years’ period.

Company speak

Commenting on performance, GTPL managing director Anirudhasinhji Jadeja said, “Q1FY20 was the first full quarter with New Tariff Order (NTO), which has led to significant growth in subscription revenue. Subscription revenue grew by 47percent on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry’s first dual service product ‘GTPL GIGAHD’ to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and broadband business in FY 2019 – 20.”

Let us look at the other numbers reported by GTPL

Consolidated total expenditure increased 42.7 percent during the quarter under review to Rs 403.99 crore from Rs 283.11 crore in Q1 2019. Pay channel cost in Q1 2020 increased 42.5 percent to Rs 180.17 crore from Rs 126.44 crore in the previous year. Other operational costs increased 2.7 percent to Rs 21.39 crore from Rs 20.83 crore.

Employee benefits expense in Q1 2020 was almost flat (decreased 0.1 percent) to Rs 35.29 crore from Rs 35.32 crore in the correspond period of the previous fiscal. Finance costs reduced 20.7 percent during the querter under review to Rs 12.45 crore from Rs 15.70 crore. Other expenses in the period increased 29.8 percent to Rs 48.37 percent to Rs 37.26 crore in the corresponding quarter of the previous year.

July 12, 2019
Arasu Cable plans to launch an OTT service

MUMBAI: Tamil Nadu Arasu Cable TV Corporation (TACTV), the State-owned MSO of Tamil Nadu, is soon jumping on the OTT bandwagon. In addition to it, the MSO will also be providing IPTV services and internet connectivity to rural and urban households. The information was shared by the state minister for Information Technology M Manikandan in the assembly on Wednesday.

He also went on to mention that Arasu aims to get a loan of Rs 100 crore in 2019-2020 with a government guarantee. This loan is to cover up the cash flow deficit that the company is witnessing due to purchasing set top boxes. The investment into STBs led to a depletion of funds and so the company could not meet its financial obligations. There was also expenditure due to broadcasting services.

July 12, 2019
GTPL Hathway consolidated Q1 FY20 PAT at Rs 294 mn, up 121 per cent y-o-y

MUMBAI: GTPL Hathway Ltd (GTPL), India’s leading digital cable TV and broadband service provider, today announced the financial results for the first quarter of financial year 2019–20, as approved by its board of directors.

Commenting on performance, GTPL Hathway MD Anirudhasinhji Jadeja said, “Q1FY20 was the first full quarter with new tariff order (NTO), which has led to significant growth in subscription revenue. Subscription revenue grew by 47 per cent on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry’s first dual service product ‘GTPL GIGAHD’ to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and Broadband business in FY 2019 – 20.“

Q1 FY20 Consolidated Financial Performance Highlights (as per IND AS)

• Revenue (ex. EPC) at Rs 3,911 million, up 29 per cent y-o-y

• CATV subscription revenue at Rs 2,472 million, up 47 per cent y-o-y

• Broadband revenue at Rs 393 million, up 9 per cent y-o-y

• EBITDA (ex. EPC) at Rs 1,103 million; up 32 per cent y-o-y; EBITDA margin (ex. EPC) at 28.2 per cent up by 60 bps

• Profit after tax (ex. EPC) at Rs 266 million; up 100 per cent y-o-y

• Q1 FY20 EPC Contract revenue, EBITDA and PAT at Rs 632 million, Rs 52 Million and Rs 29 million

respectively.

Q1 FY20 Standalone Financial Performance Highlights (as per IND AS)

• Revenue at (ex. EPC) Rs 2,538 million; up 27 per cent y-o-y.

• CATV subscription revenue at Rs 1,631 million; up 45 per cent y-o-y.

• EBITDA (ex. EPC) at Rs 745 million up 31 per cent y-o-y; EBITDA margin (ex. EPC) at 29.4 per cent up by 90 bps

• Profit after tax (ex. EPC) came in at Rs 223 million; up 135 per cent y-o-y

Business Performance Highlights

CATV

• GTPL seeded 200,000 STBs during first quarter FY20, taking total seeded STBs as on June 30, 2019

to 9.70 million. Digital paying subscribers as on June 30, 2019 stood at 7.1 million, increased by

300,000 mainly due to reactivation of service by existing subscribers.

• Phase wise Seeded Boxes as on June 30, 2019 for Phase 1, Phase 2, Phase 3 and Phase 4 were at

0.86 million, 2.26 million, 3.00 million and 3.58 million respectively.

Broadband

• During Q1 FY20, the company added 240,000 Home Pass. Home Pass as on June 30, 2019 stood

at 2.66 million. ~50 per cent of Home pass are available for FTTX connections.

• Added 15,000 net broadband subscribers during Q1 and 10,000 FTTX subscribers (67 per cent of net

addition). Total subscribers as on June 30, 2019 were 340,000 of which 64,000 are FTTX

subscribers.

• The Broadband average revenue per user (ARPU) for Q1 FY20 was Rs 420.

July 11, 2019