ITV

Category: Cable TV

  • LCOs to get unique TRAI number to ensure fair deals, says advisor Gupta

    NEW DELHI: Despite claims of major achievements in all parts of the country in digital addressable system, a meet held recently in Chandigarh presented a dismal picture with many local cable operators complaining that the switching off of analogue had badly affected their business.

    In the seminar organised by the Telecom Disputes Settlement Appellate Tribunal, even Tribunal chairman Justice Shiva Kirti Singh said the operators should approach the government for solutions.

    Information and broadcasting ministry joint secretary (broadcasting) Manoj Kumar Pingua talked about the achievements of digitisation and referred to the transparency leading to greater tax collections by the centre as well as state governments.

    The seminar, on ‘Digitisation: Achievements Issues and the Way Forward’, was attended by the judges of different courts, lawyers, multi-system operators broadcasters and LCOs.

    Telecom Regulatory Authority of India principal advisor S K Gupta said there was a plan to issue a unique number to each LCO and keep a track of his Interconnection Agreements to ensure he gets a fair deal.

    One LCO from the Chamba in Himachal Pradesh said that he had lost all his business because broadcasters had switched off analogue signals and multisystem operators were not prepared to supply him digital signals.

    Another LCO from Punjab said his investments of Rs seven million in a HITS headend and STBs have gone waste as Jain HITS has closed its business. The government has made no policy to compensate cable operators in such conditions. He said that HITS was not working in the present circumstances as broadcasters create hurdles in providing content.

    Earlier, Zee HITS had also closed down. Now only NeXT Digital of Hindujas is operating but he said LCOs were losing faith in the technology.

    Another LCO said MSOs were not giving signed copy of the Interconnection Agreement to LCOs and exploited them every now and then by raising subscriptions. He said there is no security in the business, and since all regulations are challenged in the courts, even the regulator is unable to help.

    While GST had been cleared and Cable and DTH services will attract 18% tax and STBs and other digital equipment will be taxed at 28%, the speakers said they were worried about the negative impact of GST on the business as neither ‘Make in India’ will succeed nor the dream of a ‘Digital India’ will be fulfilled.

  • Rajesh Sethi succeeds Wadhwa as ED & CEO of SITI Networks

    NEW DELHI: Senior media expert Rajesh Sethi has been appointed Executive Director CEO of SITI Networks Limited, as V D Wadhwa is stepping down.

    Wadhwa has been asked by the management to help in smooth transitioning by being with Sethi over the next couple of months.

    Sethi has over 22 years of experience in varied industries like Media, Insurance and Automotive sector across India and South East Asia.

    Sethi joined Ten Sports (Taj Television – a then subsidiary of Zee Entertainment) in July 2013 as Chief Executive Officer, where he spearheaded the turnaround and divestment of Ten Sports from multi year losses to a profitable entity and has placed the Distribution & Placement Business on a consistent growth path.

    Before joining Zee Entertainment, Sethi has been associated with large conglomerates like Tata, General Electric and Allianz with a proven track record of progressive leadership and entrepreneurial success. He specializes in enhancing Stakeholder value through large-scale Business Transformation, Leadership Development, Innovation, Organization change management and Customer strategies.

    Sethi completed his under graduation in Mechanical Engineering and received his Executive Education from Harvard Business School, Kellogg School of Management & INSEAD and is a GE certified Quality Green Belt.

    He has been conferred with prestigious awards of “Rashtriya Udyog Ratna” by N.E.H.R.D.O. and “Global Indian Achievers Award for Business Excellence 2012″ by Economic Development Forum.

    Speaking on his tenure at SITI Networks, Wadhwa said, “It was one of my most satisfying careers at SITI. Under the guidance of the Board, we have managed to establish SITI as one of the leading profitable players today. I thank the Board for the opportunity and wish Rajesh and his team all the success.”

    Commenting on his new role, Sethi said “Post our very successful turnaround & divestment of Tensports and thereafter implementation of Digitisation of our broadcasting business, I am very excited to further transform our Delivery Platform with SITI Networks which has immense growth possibilities & opportunities. The sector is on the cusp of reinventing itself with smarter Business Models and ways of delivering & connecting to customers with varied products and services”.

    In a statement, the Board placed on record its appreciation for the role played by Wadhwa during his tenure in turning around the business profitably and inculcating the highest ethical standards and professional work culture in the Company.

  • DEN Networks exits TV home shopping channel business

    MUMBAI: It’s focusing on its core competence: cable TV distribution and broadband. Three years after it announced its intention to get into TV home shopping, the Samir Manchanda-promoted multi systems operator Den Networks Ltd is now exiting from it.

    The company had launched a channel called DEN Snapdeal Home Shop in 2016 (in partnership with the ecommerce site) only to have its partner exit from it in March 2017.

    DEN Networks has now signed a deal with Noida-based Vijender Singh promoted Pimex Broadcast under which the latter will be acquiring 100 per cent of Macro Commerce – the company which runs the home shopping channel. Singh is also one of the directors of Pantel Technologies which manufacture telephones, mobile handsets, and tablets and computers.

    Pimex will take over all the existing liabilities and dues of Macro and both together aspire to be one of the significant players in the TV shopping business, says the DEN Networks press statement to the Bombay stock exchange (BSE). The name of DEN and Snap deal will be dropped off from the branding.

    DEN has already made provisions for its investment in Macro in its books of accounts in the previous financial year and hence, there will not be any further impact in the profit and loss account, points out the company’s statement to the BSE.

  • GTPL Hathway gets SEBI nod for Rs 600-cr June IPO, to repay loans, expand cable & b’band with new tech

    MUMBAI: GTPL Hathway, a part of Hathway Cable and Datacom which offers cable TV and broadband services, is preparing to raise around Rs 600 crore through an initial public offer (IPO) in June.

    Proceeds from the IPO will be utilised towards repayment of loan and other general corporate purpose, PTI reported.

    A company statement stated that they had received capital markets’ regulator SEBI approval to float the IPO.

    According to the Draft Red Herring Prospectus (DRHP), the company’s public issue comprises fresh issuance of equity shares worth Rs 300 crore and offer for sale of 1.8 crore scrips by the existing shareholders.

    BNP Paribas, JM Financial Institutional Securities, Motilal Oswal Investment Advisors Pvt Ltd and Yes Securities will manage the public issue.

    By 30 September last year, GTPL Hathway’s digital cable TV services reached 169 towns across India, including towns in Gujarat, Maharashtra, Bihar, West Bengal, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh.

    With around 5.41 million active digital cable subscribers, the company is now preparing to expand both its cable TV and broadband services with newer technology.

    The company is gradually phasing out analogue services so as to comply with the government’s policy on digitisation, which will provide it an opportunity to expand products with broadband services and additional high definition channels.

  • Don’t place a TV channel under multiple genres, TRAI warns MSOs

    NEW DELHI: Coming down heavily on the practice of listing television channels under multiple genres (LCN), the Telecom Regulatory Authority today told multisystem operators to strictly comply with the regulatory framework in letter and spirit.

    The regulator warned MSOs that action would be taken against MSOs under the TRAI Act if they failed to comply with the regulations in this regard.

    TRAI said that the MSOs have been mandated to create genres in the electronic programme guide (EPG) and to place the channels in the genres as directed by the broadcaster.

    The press note said this makes it easier for the subscriber to find the channel of his or her choice and is therefore consumer friendly.    

    At the outset, the regulator said it had taken several measures from time to time to protect the interests of consumers as well as service providers of the broadcasting and cable services sector. For providing a level playing field to service providers and to ensure orderly growth of the sector, the Authority issues regulations, orders and directions from time to time.

    For the cable TV service  provided through digital addressable systems,  the technology provides for a ‘Electronic  Programme  Guide  (EPG)”  wherein  the channels being carried  on the operator’s network  can  be arranged  and  indexed  in a simple. easy  to understand  manner  so that the consumer  can easily  go through this guide and select the channel  of his choice instead of  flipping  through a ll the  channels. This display of channels in EPG can be genre-wise where all the channels of  a particular  genre  are  listed under that genre.  

    The extant regulatory  framework provides that every  broadcaster  is required  to declare the genre of its channel  and such genre shall be either ‘News and Current Affairs’  or  ‘Infotainment’  or  ‘Sports’  or ‘Kids’ or ‘Music’ or   ‘Lifestyle’ or ‘Movies’ or ‘Religious or Devotional’ or ·General Entertainment  (Hindi)’  or ‘General Entertainment (English)’ or ‘General  Enter1ainment (regional language)’.  The MSOs carrying a channel on its network, has been mandated to place that channel in the genre so declared by the broadcaster of that channel.  The MSO is required to ensure that a ll the channels falling in a particular genre appear in its network’s EPG under that genre. 

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  • Hathway reports improved performance

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 18.5 per cent growth in consolidated Total Income  (Total Revenue) for the fiscal ended 31 March 2017 (FY-17, current year or fiscal) as compared to FY-16. The company’s consolidated operating profit increased 58.9 percent in fiscal 2017 as compared to fiscal 2017.

    Hathway reported consolidated Total Revenue of Rs 13,682.3 million for FY-17 as compared to Rs 11,550.4 million in the previous year. Consolidated Income from Operations increased 18.9 percent in the current year to Rs 13,371.2 million from Rs 11,241.8 million in the previous year.

    Consolidated simple EBIDTA including operating and other income increased to Rs 2,210.7 million (16.2 percent of Total Revenue) in the current year as compared to Rs 1,391.1 million (12 percent of Total Revenue) in fiscal 2016.

    Hathway’s consolidated net loss for FY-17 reduced to Rs 1,929.4 million from Rs 2,376.8 million in FY-16.

    Let us look at the other numbers reported by the company

    Consolidated total expenses for the year increased 14.6 percent to Rs 15,636.6 million (114.3 percent of Total Revenue) as compared to Rs 13,646.3 million (121.4 percent of Total Revenue) in FY-16.

    Pay channel cost went up by 8.8 percent in FY-17 to Rs 4,716.9 million (34.5 percent of Total Revenue) from Rs 4,335.6 million (38.6 percent of Total Revenue) in the previous year. Employee Benefits Expense increased 8.1 percent to Rs 931.5 million (6.8 percent of Total Revenue) in fiscal 2017 from Rs 862 million (7.7 percent of Total Revenue) in the previous fiscal.

    Other operational expense in FY-17 increased 25.9 percent to Rs 2,564.7 million (18.7 percent of Total Revenue) from Rs 2,036.5 million (18.1 percent of Total Revenue) in the previous year. Other expenses increased 11.4 percent to Rs 3,258.5 million (23.8 percent of Total Revenue) in FY-17 from Rs 2,925.2 million (26 percent of Total Revenue) in the previous year.

    Finance costs increased 23.3 percent in the current year to Rs 1,107.5 million (8.1 percent of Total Revenue) from Rs 898.4 million (8 percent of Total Revenue) in the previous year.

    The company has stated in its financial results: Pursuant to the approval of the internal restructuring by the board of directors and the shareholders and after seeking in-principle prior approvals from the lenders, Hathway transferred its Cable Television business by way of slump sale to its wholly owned subsidiary Hathway Digital Private Limited (earlier known as Hathway Datacom Central Private Limited) (said Subsidiary) with effect from close of business hours as of March 31, 2017 for a total consideration of Rs. 302 crore (Rs 3,020 million). In view of the same, all assets and liabilities including borrowings attributed to the cable television business got vested in the said subsidiary.

  • MSOs urged to make payments for registration online only

    NEW DELHI: All multi-system operators can make the payment of Rs 100,000 towards Processing Fee to the Information and Broadcasting Ministry from January 2O17 through Bharat Kosh only and not in physical form of payment (Bank Draft or cheque)..

    This is part of the move to implement ‘Digital India’ Initiative with the launch of the “Online Non-Tax Revenue Portal (NTRP) for collection of Non-Tax Revenue Receipts.”

    All applicants seeking multi system operator (MSO) registration were informed on 13 January 2017 about this.

    However, the Ministry said today that some app|ications are sti|| being received a|ong with Bank Drafts.

    The Ministry said these are being returned with the request to make the payment through Bharat Kosh.
    For making payments through NTRP, applicants may visit bharatkosh.gov.in. User guide is available under bharatkosh.gov.in/Static/Template/Userguide/pdf.

    Application for MSO registration can also be-submitted online and details are available under broadcastseva.gov.in.

  • Siti revenue up across all streams

    BENGALURU: Siti Networks Limited (Siti) reported 4.4 percent growth in revenue for the year ended 31 March 2017 (FY-17, current year or fiscal) as compared to the previous fiscal. Consolidated revenue growth was driven by revenue growth in all the streams that contribute to Siti’s numbers. The company in its earnings release says that its broadband internet services revenue doubled to Rs 970 million, Subscription revenues grew 39 percent to Rs 5,690 million and Carriage revenues increased 17 percent to Rs 3,000 million in the current year vis-à-vis the previous year.

    Overall, Siti reported consolidated total income of Rs 12,208.01 million and Rs 11,691.56 million in the current and previous years respectively. Operating revenue in FY-17 grew 4.3 percent to Rs11,949.16 million from Rs 11,460.40 million in FY-16.

    The company says that it deployed more than 2.1 million set top boxes during the year despite the delay in implementation of phase 3 digitization due to litigation. It says that its digital video base was about 10 million at the exit of March 2017. Siti says that during the year 0.11 million of its customers adopted HD services taking the total HD customer base to 0.16 million by exit FY-17.

    Siti has bolstered its local channels content with tie-ups with Eros, Ultra, Cineprime, ADB Mobile and Entertainment and now has a portfolio of 130 plus local channels on a pan-India basis. It is also looking to add 7 to 8 new local channels for its North India viewers under certain genres and languages.

    The company says that Siti-Ditto OTT services grew strongly with the addition of 29,000 customers during the quarter – 1 January to 31 March 2017, taking the total customer base to 60,000.

    The company’s bottom line however showed some declines. Consolidated loss was higher at Rs 1,792.31 million in the current year as compared to a loss of Rs 412.91 million in the previous year. Consolidated EBIDTA including other revenue in fiscal 2017 at Rs 2,286.94 million (19.1 percent of Total Income) declined 15 percent from Rs 2,690.57 million (23.5 percent of Total Revenue).

    Company speak

    Siti executive director and CEO V D Wadhwa said: “Our tenacious execution has ensured stellar growth in our video revenue whereas broadband growth is falling short of our expectations. The management is highly committed towards improving monetization and operating profit across all phases, during the current year. We are well positioned to reap the benefits of improved monetization across phases as we simultaneously continue to expand our Broadband reach. The implementation of GST is expected to simplify the collection process, bring in greater transparency and will provide a boost to the growth of the sector.”

    Let us look at the other numbers reported by Siti

    Consolidated Total Expenditure increased 6.4 percent y-o-y to Rs 13,607.36 million (111.5 percent of Total Income) in FY-17 from Rs 12,054.82 million (103.1 percent of Total Income) in FY-16

    Consolidated Employee Benefit Expense increased 32 percent to Rs 832.90 million (6.8 percent of Total Income) in the current quarter from Rs 630.90 million (5.4 percent of Total Income) million in FY-16. 

    Consolidated Carriage sharing, pay channel and related costs in FY-17 increased 5 percent to Rs 5,971.33 million (48.9 percent of Total Income) from Rs 5,686.36 million (48.6 percent of Total Income) in the previous year.

    Consolidated Finance costs in the current year reduced 8.9 percent to Rs 1274.47 million (10.4 percent of Total Income) from Rs 1,399.29 million (12 percent of Total Income).

    Consolidated Other expenses increased 28.4 percent to Rs 2,954.67 million (24.2 percent of Total Income) in FY-17 from Rs 2,302.03 million (19.7 percent of Total Income) in FY-16.

  • Den Networks cable operations revenue up; broadband revenue doubles

    BENGALURU: Indian multi system operator (MSO) Den Network reported 21.8 percent increase in operating revenue for its Cable distribution (cable) business  for the year ended 31 March 2017 (FY-17) at Rs 1,075.54 crore as compared to Rs 883.24 crore in the previous year (FY-16). The company’s broadband internet revenue in FY-17 more than doubled to Rs 81.80 crore from Rs 39.80 crore in FY-16.

    The company claims in its earnings release that Cable business EBIDTA increased to Rs 144 crore in FY-17 from Rs 18 crore in the previous year. The company’s EBIDTA in FY-17 doubled to Rs 254 crore from Rs 127 crore in FY-16. Broadband business EBIDTA reduced to a loss of Rs 10 crore versus a loss of Rs 66 crore in the previous year. Pre-activation EBIDTA in FY-17 grew to Rs 135 crore as compared to a loss of Rs 107 crore in FY-16.

    Overall, Den Networks revenue increased 19.1 percent in fiscal 2017 to Rs 1198.26 crore from Rs 1,005.87 crore in the previous fiscal. Cable subscription revenue grew 33 percent to Rs 646 crore in FY-17 from Rs 487 crore in FY-16. Den Networks reported a lower net loss of Rs 189.57 crore in FY-17 as compared to a loss of Rs 431.30 crore in the previous year.

    The company says that it has focused largely on cash collections during the year which has brought down the net debt of the company to Rs. 181 crores as at March 31, 2017, thereby deleveraging its balance sheet.

    Den Networks CEO SN Sharma said, “The cable subscription revenues grew by 33 percent in the current financial year and contributed to the financial turnaround for the company. The EBITDA for DAS I has grown from 23 percent to 30 percent and the EBITDA for DAS II has grown from 11 percent to 18 percent this year. The company continues to focus on core businesses, while preparing for HD Box deployment, cost optimization and technology up gradation to enhance consumer experience and improve operational efficiency.”

    Let us look at the other numbers reported by Den Network

    Den’s total expenses in FY-17 reduced 1.8 percent to Rs 1,321.19 crore from Rs 1,344.83 crore in FY-16. Content Costs in FY-17 was almost flat at Rs 473.28 crore as compared to Rs 473.22 crore in the previous year. Placement fees costs in FY-17 reduced 6.2 percent to Rs 50.20 crore from Rs 53.50 crore in FY-16.

    Employee Benefits Expense in FY-17 was also almost flat (increased 0.3 percent) to Rs 123.37 crore from Rs 123.01 crore in the previous year. Other Expenses in fiscal 2017 declined 19.1 percent to Rs 331.68 crore from Rs 409.91 crore in fiscal 2016.

  • Change in provisions for bad debt reduces Ortel profits

    BENGALURU: The Bibhu Prasad Rath led Ortel Communications Limited (Ortel) reported less than one tenth profit after tax (PAT) for the year ended 31 March 2017 (FY-17) at Rs 1.43 crore (0.69 percent margin of Total Revenue or TIO) as compared to the Rs 11.93 crore (6.1 percent margin of TIO). Ortel reported 5.6 percent growth in total revenue at Rs 207.21 crore as compared to the Rs 196.29 crore for FY-16.

    During 2017, the company has changed the basis of estimating the provision for doubtful receivables from retail customers. Because it has ventured into new geographies, the company has now made provision for doubtful retail receivables based on the management’s best estimate as compared to the previous practise of making provisions for receivables for more than 6 months. The company has provided for Rs 24.9 crore in FY-17 as compared to Rs 16 crore in FY-16. In its earnings presentation, the company has shown a longer period for receivable days for 2017 at 115 days as compared to 61 days in the case of 2016.

    Other factors that affected the company’s profitability in FY-17 were lower Average Revenue per User (APRU) for Ortel’s cable (Rs 147 in FY-17 as compared to Rs 151 in FY-16) as well as broadband businesses (Rs 375 in FY-17 as compared to Rs 398 in FY-16).  

    Further, the company’s broadband bandwith cost more than doubled to Rs 17 crore in FY-17 from Rs 8.32 crore in the previous year which Ortel says is a result of higher intercity carrying costs for expansion of digital services.

    Ortel’s cable subscriber base in FY-17 increased to 7,50,471 from 6,28,710 in FY-16. Broadband subscriber base in FY-17 increased to 73,087 from 72,482 in FY-16.

    Ortel’s revenue growth was due to 22 percent growth in Cable TV revenues in FY-17 to Rs 159.6 crore from Rs 130.5 crore in FY-16 while Broadband revenues reported a growth of 7 percent at Rs 35.3 crore in FY-17 from Rs 32.9 crore in FY-16. EBIDTA for fiscal 2017 was 55.1 crore as compared to Rs 70.3 crore in the previous year.

    Total expenditure for FY-17 increased 13.5 percent higher at Rs 205.78 crore as compared to Rs 181.30 crore in FY-16. Programming cost increased 2.5 percent in FY-17 to Rs 38.45 crore as compared to Rs 37.51 crore in FY-16. Employee Benefits Expense in FY-17 increased 9.2 percent to Rs 24.56 crore from Rs 22.50 crore in FY-16.

    Company speak:

    Ortel CEO Rath said, “Second half of FY2017 has been a challenging period for the Company with key operating parameters performing below our expectations. However, I am happy to share that we have reported some improvement during Q4 and the management’s thrust in the coming quarters will be to significantly enhance the overall operational performance.
    We have sustained the positive EBITDA momentum in the Non-Odisha Markets. As we consolidate our new subscriber base in relatively new states like Andhra and Telangana and improve key metrics, we hope to continue delivering similar results.

    We have consciously slowed inorganic acquisitions as we look to first demonstrate the strength of owning and controlling the ‘last mile’ from the existing subscriber base. So on the back of our exceptional ‘last mile’ business model, we anticipate a marked improvement in financial and operational performance in FY18.”