ITV

Category: Cable TV

  • Operating margin, sub revenue prop up Siti financials

    Operating margin, sub revenue prop up Siti financials

    BENGALURU: Backed by higher subscription and carriage revenue, Indian multi-systems operator (MSO) Siti Networks Ltd (Siti) has posted 19.4 percent higher consolidated total income for the quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the corresponding year ago quarter. Total comprehensive loss (TCL) for the quarter was slightly lower as compared to the year ago and the immediate trailing quarters. Siti’s consolidated total income in Q3 2018 was Rs 364.85 crore as against Rs 305.54 crore for Q3 2017. TCL, including non-controlling interest during the quarter under review, was Rs 32.51 crore as compared with Rs 33.15 crore in Q3 2017.

    Siti’s subscription revenue in Q3 2018 increased by 43.6 percent year-on-year (yoy) to Rs 211.8 crore from Rs 147.5 crore. Carriage income for the period improved by 14.2 percent to Rs 82.9 crore from Rs 72.6 crore. The company’s activation and broadband revenue, however, declined yoy. Activation revenue in Q3 2018 at Rs 27.7 crore was 40.8 percent lower yoy than the Rs 46.8 crore in Q3 2017.

    Siti’s overall EBIDTA, including other income during the quarter under review, increased by 24.9 percent yoy to Rs 77.56 crore from Rs 62.09 crore. Operating EBIDTA (EBIDTA excluding activation) in Q3 2018 more than doubled yoy (increased by 2.26 times) to Rs 49.86 crore from Rs 15.29 crore.

    Siti’s cable TV (video) subscriber base increased by 22,000 in Q3 2018 to 1.132 crore from 1.110 crore in Q3 2017. The company added 4.6 lakh digital subscribers during the quarter. Its HD subscriber base increased by 46,000 to 2.90 lakh whereas the broadband subscriber base grew by 9,000 to 2.47 lakh in Q3 2018.

    While commenting on the results, Siti chief business transformation officer, Rajesh Sethi, said, “Our sustained focus on building operating efficiencies at SITI, coupled with an agile and process-driven work force, has driven our EBITDA growth this quarter to Rs 77.5 crore. Our operating EBITDA margin has expanded 2.5 times yoy to 14.8 percent, which is a testament to the successes we have been achieving in this transformation.”

    “We are hopeful about the impending implementation of the new tariff order, which will give our customers the right to choose while improving profitability through cost optimisation,” added Sethi.

    Let us look at the other numbers reported by Siti

    Total expenditure increased by 17.6 percent yoy to Rs 402.11 crore from Rs 341.97 crore. Finance costs reduced by 13.1 percent yoy to Rs 31.26 crore from Rs 35.97 crore. Carriage sharing, pay channel and related costs rose by 18.2 percent yoy to Rs 1170.62 crore in Q3 2018 from Rs 144.40 crore. Employee benefits expense in the quarter under review increased by 18 percent yoy to Rs 22.50 crore from Rs 19.07 crore in the corresponding year ago quarter. Other expenses grew by 16 percent y-o-y in Q3 2018 to Rs 92.79 crore from Rs 79.96 crore.

  • Subscription revenue drives up Den’s PAT

    Subscription revenue drives up Den’s PAT

    MUMBAI: Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.

    Consolidated Q3 EBITDA (earnings before interests, taxes, depreciation and amortisation) stood at Rs 81 crore, 54 per cent higher than the Rs 53 crore reported a year ago but lower than the Rs 82 crore reported in the previous quarter. This EBITDA does not include the Rs 14 crore pertaining to entities that are not getting consolidated as per INDAS or else the overall consolidated EBITDA is Rs 95 crore.

    The MSO has been able to get higher subscriptions from phase III and IV markets with revenue growth from cable subscription 21 per cent higher than Q3 2017 and 6 per cent higher than Q2 2018. This was aided by 10 per cent higher average revenue per user (ARPU) collection from phase III areas on a quarter-on-quarter basis.

    Cable revenue stood at Rs 312 crore versus Rs 272 crore in the year ago quarter, up by 15 per cent. Cable EBITDA was Rs 82 crore, up from Rs 53 crore from Q3 2017, led by subscription growth and rationalisation of costs.

    Subscription revenue drove up consolidated PAT to Rs 2 crore from negative Rs 37 crore in Q3 FY2017 and Rs 1 crore in Q2 2018.

    The company stated that its broadband business was on track and that it managed to add 10,000 new subscribers during the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion. Cost optimisation initiatives have helped the broadband segment to break even which was negative Rs 1 crore in the previous quarter.

    Den Networks CEO SN Sharma said, “Den has been able to improve operational performance consistently every quarter with constant focus on increasing the subscription collections on the ground with a much controlled cost base. It is a time of pride and joy as we announce that as per the Trust Research Advisory research, Den has outshone all its competing brands and has emerged as the ‘Most attractive brand of 2017’ in the cable TV segment.”

    Also Read:

    Higher subscription & activation lead Den’s turnaround in Q2  

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    Den Networks buys 51% in VBS Digital

  • Hinduja Ventures board okays amalgamation with Grant Investrade

    Hinduja Ventures board okays amalgamation with Grant Investrade

    MUMBAI: Hinduja Ventures Ltd’s (HVL) the board of directors  has approved the amalgamation of Grant Investrade Ltd (GIL), a wholly owned subsidiary, into the company. 

    The appointed date for the scheme of amalgamation is 1 October 2017.

    The approval has been granted subject to the approval of the National Company Law Tribunal (NCLT) at Mumbai, the approval of the shareholders and other such approvals as may be required.

    HVL has business interests in media, real estate and treasury while GIL is in the business of running channels on cable TV and treasury.

    Earlier, GIL housed the headend in the sky (HITS) business of HVL. The HITS business has now been merged with the cable TV business under IndusInd Media and Communications Ltd (IMCL), which is also a subsidiary company.

    HVL’s revenue from operations in financial year 2017 was Rs 201.7 crore while the paid-up capital is Rs 20.55 crore. GIL, whose paid-up capital is Rs 6.78 crore, had earned revenue of Rs 22.7 crore during the year.

    Since the transaction falls within the related party transaction no shares will be issued to GIL.

    Also Read:

    HVL reports lower loss for fiscal ’17, media & communications segment revenue up

    HVL receives NCLT nod for GIL’s HITS to de-merge into Indusind Media

  • Kolkata cable operators want cable TV GST at 5%

    Kolkata cable operators want cable TV GST at 5%

    MUMBAI: The plea of cable TV operators in Kolkata to reduce the goods and services tax (GST) from the current 18 per cent to 5 per cent has been heard.

    The West Bengal government’s state municipal affairs minister Firhad Hakim was quoted by the Cable TV Equipments Traders & Manufacturers Association (CTMA) as saying, “Cable television services are essential services and should not have 18 per cent GST, which is in effect at present.” He went on to say that he will, on behalf of the cable TV operators, present the issue to the finance minister Amit Mitra, who is a member of the GST council.

    Siticable, Manthan and GTPL-KCBPL are the main players in the West Bengal market. GST is divided into various slabs right now – 5 per cent, 12 per cent, 18 per cent and 28 per cent.

    Bengal Broadband to offer cable TV & broadband services in W Bengal

    A bumpy ride for gross billing in Kolkata

    Kolkata MSO GTPL-KCBPL applies for broadband license

  • Den Networks buys 51% in VBS Digital

    Den Networks buys 51% in VBS Digital

    MUMBAI: Multi-system operator Den Networks Ltd (Den) has acquired 51 per cent stake in cable televison distributor VBS Digital Distribution Network Pvt Ltd (VBS Digital) for Rs 2.64 crore in cash. According to Den’s release to the Bombay Stock Exchange, the deal will strengthen the company’s cable TV network in Uttar Pradesh.

    Den provides cable TV distribution and broadband services in 13 states, including Delhi, Uttar Pradesh, Karnataka, and Maharashtra. Incorporated in 2015, VBS Digital posted revenue of Rs 5.82 crore in the financial year ended March 31, 2017.

    Promoters and Goldman Sachs together hold about 61.28 per cent stake in Den. In June 2017, Den had sold its entire stake in TV merchandise channel Macro Commerce Pvt Ltd to focus on the core business.

    Also read:

    Higher subscription & activation lead Den’s turnaround in Q2

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    Nakul Chopra is new BARC chairman

  • TiVo’s next-gen solution to help cable operators retain customers

    TiVo’s next-gen solution to help cable operators retain customers

    MUMBAI: TiVo Corporation has launched Next-Gen Platform, a range of cloud-based products with a unified backend to help operators stay ahead of the game. The platform can be deployed for QAM, hybrid and IPTV to anticipate and quickly address customer needs.

    “Consumers face a fragmented, ever-changing media landscape as new services, content sources and devices continue to proliferate,” said TiVo senior vice president and general manager for user experience Michael Hawkey. “Media companies are compelled to evolve. TiVo’s Next-Gen Platform is specifically designed to meet the consumer’s insatiable desire for entertainment while enabling operators to maintain market share and remain relevant amid growing competition.”

    Customers can be assured of services like hyper-personalisation, recommendations, voice control, seamless integration of content across linear, OTT, on-demand and DVR platforms for multiscreen purposes. Content can be driven wherever it is watched such as managed set top boxes such as Linux and Android TV, unmanaged devices like Apple TV, Amazon Fire TV, mobile and web.

    Service providers will be able to reduce churn, boost customer engagement, capture and retain market segments, stay ahead of competition and own customer experience.

    “User experience defines the operator’s video services for consumers,” said Parks Associates senior director of research Brett Sappington. “Every pay-TV service and streaming video service is working to capture and maintain consumer attention in order to drive ongoing use and monetisation. As a result, operators need a flexible platform that allows them to innovate rapidly and meet or surpass connected experiences offered elsewhere.”

    The solution also helps operators in their transition to IPTV considering capital expenditure, networking and rights constraints of the operator while maintaining support for QAM

    Also Read :

    Japan’s KDDI adopts TiVo’s remote-recording service

    TiVo brings comprehensive personalised content discovery platform with voice search

    Turner selects TiVo to provide enhanced electronic programme services

     

  • Ortel to move broadband business to new entity

    Ortel to move broadband business to new entity

    MUMBAI: Multi-system operator Ortel Communications Ltd plans to incorporate a new wholly owned subsidiary, Ortel Broadband Ltd, in order to operate the broadband business separately. 

    In a release to the Bombay Stock Exchange today, Ortel Communications stated that the board of directors had approved the decision. The company will transfer the broadband business to this new entity subject to requisite approvals.

    The restructuring of the business comes on the back of the company facing severe competition in its core market Odisha and a shortfall in collections and repayment of debt.

    Ortel, with its operations focused in Odisha, Chhattisgarh, Andhra Pradesh, Telengana, West Bengal, and Madhya Pradesh, has been a trendsetter in offering customer-centric broadband plans. 

    Taking a big step towards recovery, the company unveiled its new unlimited data plans starting from Rs 99 per month last week.

    Also read:

    Ortel takes on competition with new broadband plans

    Multiple challenges weaken Ortel numbers in second quarter

  • DEN Networks tops as most attractive Cable TV brand: TRA Research

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    DEN Networks Ltd, one of the largest cable MSOs in India, is the top cable brand according to the “Most Attractive Brands 2017” report by Trust Research Advisory (TRA), a brands insight company. S.N. Sharma, CEO, DEN Networks said, “We are delighted to be recognised as the most attractive Cable TV brand in the country by TRA. This recognition reflects our enduring efforts to fulfill customer satisfaction and quality service. As a dynamic and technologically driven company, we have been the leading innovator in the digital cable TV industry in India. From being the first national MSO to launch its own OTT app – DEN TV+ to launching premium international gaming service “DEN Playin’ TV” on our network and introducing special HD Set-top box with accessories to enjoy audio and video streaming over internet on non-smart TVs, our initiatives have been aimed at delighting our customers, attuned to their changing preferences and lifestyle needs. We hope to cement our leadership position by continually redefining and improving the industry benchmarks in TV viewing experience.”

    ‘Most Attractive Brands’ is an annual study conducted by TRA. The rankings are based on a primary research conducted across 16 Indian cities among 2,456 consumers. The study generated nearly 5 million data points and 5,000 unique brands mentions of which 1000 brands are listed in the list. The research is based on TRA’s proprietary 36-attribute Attractiveness Matrix.

  • Government to once again make MHA clearance compulsory for MSOs?

    Government to once again make MHA clearance compulsory for MSOs?

    MUMBAI: Are there more regulatory controls coming on the cable TV industry? If reports emerging in the media (The Asian Age) are to be believed, then they probably are. According to the newspaper, every multisystem operator (MSO) which is licensed with the ministry of information & broadcasting (MIB), will now have to also seek the ministry of home affairs’ security (MHA’s) clearance. A notification to this effect is being planned and passed by the Narendra Modi government.

     Hitherto, broadcasters and satellite service providers had to go through this procedure. MSOs could just get a licence from the post office to operate in the country, following which they had to get a digital licence from the MIB. The security clearance from the MHA requirement was discontinued a couple of years ago to speed up the  pace of cable TV digitalisation.

     The newspaper says the government was forced to take such a step for MSOs as well because the MIB had received complaints that several cable TV operators are continuing to retransmit channels which showed content that was potentially harmful to the nation’s security and was deemed as objectionable.

     The government is seeking to make it compulsory for MSOs to get annually vetted by the central intelligence and government security agencies to prevent this from occurring.

     No confirmation, from the MIB or government sources, was available at the time of writing this report.

  • MSOs move Madras HC seeking relief on inter-connect pacts

    MSOs move Madras HC seeking relief on inter-connect pacts

    MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime announced in 2016.

    The tariff order, along with guidelines on quality of services, was stayed by the Supreme Court pending a final directive from the Madras High Court.

    Pleading that renegotiating inter-connect agreements on expiry at this point of time could lead to losses to the MSOs and subscribers, in general, the apex body of digital MSOs in India has sought judicial relief.

    Telecoms and broadcast regulator TRAI, Star India and its affiliate Vijay TV have been made respondents in the case that, according to industry sources, has not yet been listed for an initial hearing at Tamil Nadu’s top court.

    Madras HC, which was hearing a case pertaining to TRAI’s validity to have jurisdiction over matters relating to copyrights, is yet to announce its final verdict. The petition was filed by Star India and Vijay TV in late 2016, which effectively put a stop to the implementation of a new tariff regime announced by TRAI in October 2016 for the broadcast sector and distribution platforms.

    Apart from the tariff order, originally issued on 10 October 2016, the regulator had also issued the DAS interconnect regulations and the standards of quality of service and consumer protection regulations. These guidelines, after being debated and allowed by Chennai and Delhi courts initially were finally stayed by the Supreme Court earlier this year till Madras High Court disposed off the Star India-Vijay TV case questioning TRAI’s jurisdiction over certain matters relating to copyrights and freedom to carry on business.

    ALSO READ:

    http://www.indiantelevision.com/regulators/high-court/orders-reserved-by-madras-hc-on-trai-jurisdiction-case-170731

    http://www.indiantelevision.com/regulators/trai/star-vijay-tv-amend-plea-trai-asked-by-madras-hc-to-file-response-170317

    http://www.indiantelevision.com/regulators/trai/trai-qos-implementation-stayed-by-delhi-hc-awaiting-madras-hc-verdict-170830

    http://www.indiantelevision.com/regulators/trai/star-trai-case-hearing-in-madras-high-court-starts-170627