ITV

Category: Cable TV

  • FY-2015: Time Warner Cable adds net video customers, revenue up 3.9%

    FY-2015: Time Warner Cable adds net video customers, revenue up 3.9%

    BENGALURU: This the first time since 2006 that Time Warner Cable Inc., (TWC) has reported year-over-year nett video subscriber additions. The company closed the year and quarter ended 31 December, 2015 (FY-2015, current year and Q4-2015, current quarter) with 10.821 million video subscribers, 32,000 (0.3 per cent increase) more than the 10.789 million at the close of FY-2014. The additions were made in Q4-2015, when the company added 54,000 subscribers, hence wiping out the fall of 22,000 until 30 September, 2015. In Q4-2015, TWC reported 10.821 million video customers as compared to 10.727 million in Q3-2015 (0.5 per cent increase).

     

    The company closed the current year with 681,000 more customer relationships than in the previous year. Total customer relationships at the end of FY-2015 and Q4-2015 were 15.129 million as compared to 14,511 million (4.3 per cent increase) at the end of FY-2014 and Q4-2015, and 14.929 million (1.3 per cent increase) in the immediate trailing quarter.

     

    Overall revenue and income

     

    The company reported 3.9 per cent growth in revenue in FY-2015 at $23,697 million as compared to $22,812 million in FY-2014. For Q4-2015, TWC reported 4.9 per cent YoY revenue growth at $6,072 million as compared to $5,790 million. Operating income in FY-2015 however declined 8.5 per cent YoY to $4,239 million as compared to $4,632 million in the previous year. Operating Income in the current quarter declined by 8.2 per cent YoY to $1,125 million as compared to $1,226 million.

     

    Company speak

     

    Time Warner Cable chairman and CEO Rob Marcus said, “I’m incredibly proud of everything we achieved this quarter and in 2015. We made our network more reliable, our products more compelling and our customer service better. And, importantly, our subscriber improvement over the last eight quarters, including our record subscriber performance in 2015, has begun to show up in our financial results. As we begin 2016, we intend to continue to improve the customer experience and build value for our shareholders.”

     

    Segment numbers

     

    Residential video: Residential video revenue in the current year declined 0.9 per cent to $9,907 million as compared to $10,002 million in the previous year. Video revenue in Q4-2015 increased 0.3 per cent YoY to $2,471 million as compared to $2,464 million in Q4-2014. Video Subscription numbers have been mentioned above.

     

    High Speed Data: High Speed Data revenue increased 9.3 per cent in FY-2015 to $7,029 million as compared to $6,428 million in FY-2014. For Q4-2015, the segment’s revenue increased 10.6 per cent YOY to $1,819 million as compared to $1,644 million in Q4-2014. High Speed Data subscribers in FY-2015 increased 8.6 per cent to 12.675 million as compared to 11.675 million in FY-2014. QoQ, relationships increased by 2.3 per cent as compared to 12.394 million in Q3-2015.

     

    Voice: Voice revenue declined 0.1 per cent in FY-2015 to $1,931 million as compared to $1,932 million in FY-2014. In Q4-2015, Voice revenue increased 5.7 per cent YoY to $497 million as compared $470 million. Voice subscribers increased 19.6 per cent in FY-2015 to 6.23 million as compared to 5.284 million in FY-2014. QoQ Voice subscribers increased 3.7 per cent in Q4-2015 as compared to 6.093 million in the immediate trailing quarter.

     

    Multi-Play: In FY-2015, while single play customers increased 2.2 per cent to 5.75 million from 5.63 million and triple play customers increased 21.9 per cent to 5.31 million from 4.356 million, double play customers declined 10.1 per cent to 4.067 million from 4.525 million in FY-2014. QoQ, Single play customers increased 0.8 per cent, triple play customers increased four per cent, while double play customers declined 1.2 per cent.

     

    Business Services: Business services contribution to TWC’s revenue increased to 13.9 per cent in FY-2015 from 12.4 per cent in FY-2014. Overall Business Services Revenue (BSR) in the current year increased 15.7 per cent to $3,284 million from $2,838 million in FY-2014. Total revenue in Q4-2015 increased 14.4 per cent YoY to $864 million (18 per cent of overall revenue) as compared to $755 million (16.4 per cent of overall revenue). A major portion (a little less than 50 per cent) of BSR comes from high speed data and almost 90 per cent of TWC’s business services subscribers opting for this service.

  • FY-2015: Time Warner Cable adds net video customers, revenue up 3.9%

    FY-2015: Time Warner Cable adds net video customers, revenue up 3.9%

    BENGALURU: This the first time since 2006 that Time Warner Cable Inc., (TWC) has reported year-over-year nett video subscriber additions. The company closed the year and quarter ended 31 December, 2015 (FY-2015, current year and Q4-2015, current quarter) with 10.821 million video subscribers, 32,000 (0.3 per cent increase) more than the 10.789 million at the close of FY-2014. The additions were made in Q4-2015, when the company added 54,000 subscribers, hence wiping out the fall of 22,000 until 30 September, 2015. In Q4-2015, TWC reported 10.821 million video customers as compared to 10.727 million in Q3-2015 (0.5 per cent increase).

     

    The company closed the current year with 681,000 more customer relationships than in the previous year. Total customer relationships at the end of FY-2015 and Q4-2015 were 15.129 million as compared to 14,511 million (4.3 per cent increase) at the end of FY-2014 and Q4-2015, and 14.929 million (1.3 per cent increase) in the immediate trailing quarter.

     

    Overall revenue and income

     

    The company reported 3.9 per cent growth in revenue in FY-2015 at $23,697 million as compared to $22,812 million in FY-2014. For Q4-2015, TWC reported 4.9 per cent YoY revenue growth at $6,072 million as compared to $5,790 million. Operating income in FY-2015 however declined 8.5 per cent YoY to $4,239 million as compared to $4,632 million in the previous year. Operating Income in the current quarter declined by 8.2 per cent YoY to $1,125 million as compared to $1,226 million.

     

    Company speak

     

    Time Warner Cable chairman and CEO Rob Marcus said, “I’m incredibly proud of everything we achieved this quarter and in 2015. We made our network more reliable, our products more compelling and our customer service better. And, importantly, our subscriber improvement over the last eight quarters, including our record subscriber performance in 2015, has begun to show up in our financial results. As we begin 2016, we intend to continue to improve the customer experience and build value for our shareholders.”

     

    Segment numbers

     

    Residential video: Residential video revenue in the current year declined 0.9 per cent to $9,907 million as compared to $10,002 million in the previous year. Video revenue in Q4-2015 increased 0.3 per cent YoY to $2,471 million as compared to $2,464 million in Q4-2014. Video Subscription numbers have been mentioned above.

     

    High Speed Data: High Speed Data revenue increased 9.3 per cent in FY-2015 to $7,029 million as compared to $6,428 million in FY-2014. For Q4-2015, the segment’s revenue increased 10.6 per cent YOY to $1,819 million as compared to $1,644 million in Q4-2014. High Speed Data subscribers in FY-2015 increased 8.6 per cent to 12.675 million as compared to 11.675 million in FY-2014. QoQ, relationships increased by 2.3 per cent as compared to 12.394 million in Q3-2015.

     

    Voice: Voice revenue declined 0.1 per cent in FY-2015 to $1,931 million as compared to $1,932 million in FY-2014. In Q4-2015, Voice revenue increased 5.7 per cent YoY to $497 million as compared $470 million. Voice subscribers increased 19.6 per cent in FY-2015 to 6.23 million as compared to 5.284 million in FY-2014. QoQ Voice subscribers increased 3.7 per cent in Q4-2015 as compared to 6.093 million in the immediate trailing quarter.

     

    Multi-Play: In FY-2015, while single play customers increased 2.2 per cent to 5.75 million from 5.63 million and triple play customers increased 21.9 per cent to 5.31 million from 4.356 million, double play customers declined 10.1 per cent to 4.067 million from 4.525 million in FY-2014. QoQ, Single play customers increased 0.8 per cent, triple play customers increased four per cent, while double play customers declined 1.2 per cent.

     

    Business Services: Business services contribution to TWC’s revenue increased to 13.9 per cent in FY-2015 from 12.4 per cent in FY-2014. Overall Business Services Revenue (BSR) in the current year increased 15.7 per cent to $3,284 million from $2,838 million in FY-2014. Total revenue in Q4-2015 increased 14.4 per cent YoY to $864 million (18 per cent of overall revenue) as compared to $755 million (16.4 per cent of overall revenue). A major portion (a little less than 50 per cent) of BSR comes from high speed data and almost 90 per cent of TWC’s business services subscribers opting for this service.

  • Q3-2016: Den revenue up 31%, reports operating profit of Rs 43 crore

    Q3-2016: Den revenue up 31%, reports operating profit of Rs 43 crore

    BENGALURU: Den Networks Ltd reported 31 per cent YoY growth in consolidated Total Income from operations (TIO) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 352.18 crore as compared to Rs 268.81 crore. TIO increased 29.8 per cent QoQ as compared to Rs 271.29 crore. The company reported EBIDTA of Rs 42.99 crore (12.2 per cent margin) in the current quarter as compared to an operating profit of Rs 0.28 crore (0.1 per cent margin) in Q3-2015 and an operating loss of Rs 11.27 crore in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Den reported a lower YoY and QoQ consolidated loss of Rs 48.37 crore in the current quarter as compared to a loss of Rs 62.60 crore in Q3-2015 and a loss of Rs 75.23 crore in the immediate trailing quarter.

     

    Segment Revenue

     

    Three segments contribute to Den’s revenue: Cable distribution network segment (Cable); Broadband segment and Soccer segment

     

    Cable segment reported 26.3 per cent YoY revenue growth at Rs 326.43 crore as compared to Rs 258.55 crore and 24.1 per cent QoQ growth as compared to Rs 263.06 crore. The cable segment reported an operating profit of Rs 32.64 crore, an operating loss of Rs 0.35 crore in Q3-2015 and an operating loss of Rs 32.11 crore in the immediate trailing quarter.

     

    The company’s broadband segment revenue increased by over five times YoY (5.5 times) at Rs 11.96 crore (3.4 per cent of TIO) as compared to Rs 2.17 crore (0.8 per cent of TIO) and increased 58 per cent QoQ as compared to Rs 8.23 crore (three per cent of TIO). The segment’s YoY operating loss increased to Rs 19.57 crore as compared to Rs 12.37 crore, but reduced QoQ as compared to Rs 23.07 crore.

     

    Den’s Soccer segment reported revenue of Rs 13.97 crore as compared to Rs 8.09 crore in Q3-2015 and nil revenue in Q2-2016. Soccer segment reported lower YoY operating loss of Rs 26.11 crore as compared to Rs 35.21 crore, but higher QoQ than the Rs 8.57 crore.

     

    Den’s Total Expenditure in the current quarter increased 15.3 per cent YoY to Rs 365.23 crore (103.7 per cent of TIO) as compared to Rs 316.74 crore (117.8 per cent of TIO) and increased nine per cent QoQ as compared to Rs 335.04 crore (123.5 per cent).

     

    Content cost in Q3-2016 increased 19.9 per cent YoY to Rs 131.94 crore (37.5 per cent of TIO) as compared to Rs 110.06 crore (40.9 per cent of TIO), but reduced 3.5 per cent YoY as compared to Rs 136.77 crore (50.4 per cent of TIO).

     

    Finance costs in the current quarter reduced 15.7 per cent YoY to Rs 19.73 crore (5.6 per cent of TIO) as compared to Rs 23.41 crore (8.7 per cent of TIO) and reduced 7.2 per cent QoQ as compared to Rs 21.25 crore (7.8 per cent of TIO).

  • Q3-2016: Den revenue up 31%, reports operating profit of Rs 43 crore

    Q3-2016: Den revenue up 31%, reports operating profit of Rs 43 crore

    BENGALURU: Den Networks Ltd reported 31 per cent YoY growth in consolidated Total Income from operations (TIO) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 352.18 crore as compared to Rs 268.81 crore. TIO increased 29.8 per cent QoQ as compared to Rs 271.29 crore. The company reported EBIDTA of Rs 42.99 crore (12.2 per cent margin) in the current quarter as compared to an operating profit of Rs 0.28 crore (0.1 per cent margin) in Q3-2015 and an operating loss of Rs 11.27 crore in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Den reported a lower YoY and QoQ consolidated loss of Rs 48.37 crore in the current quarter as compared to a loss of Rs 62.60 crore in Q3-2015 and a loss of Rs 75.23 crore in the immediate trailing quarter.

     

    Segment Revenue

     

    Three segments contribute to Den’s revenue: Cable distribution network segment (Cable); Broadband segment and Soccer segment

     

    Cable segment reported 26.3 per cent YoY revenue growth at Rs 326.43 crore as compared to Rs 258.55 crore and 24.1 per cent QoQ growth as compared to Rs 263.06 crore. The cable segment reported an operating profit of Rs 32.64 crore, an operating loss of Rs 0.35 crore in Q3-2015 and an operating loss of Rs 32.11 crore in the immediate trailing quarter.

     

    The company’s broadband segment revenue increased by over five times YoY (5.5 times) at Rs 11.96 crore (3.4 per cent of TIO) as compared to Rs 2.17 crore (0.8 per cent of TIO) and increased 58 per cent QoQ as compared to Rs 8.23 crore (three per cent of TIO). The segment’s YoY operating loss increased to Rs 19.57 crore as compared to Rs 12.37 crore, but reduced QoQ as compared to Rs 23.07 crore.

     

    Den’s Soccer segment reported revenue of Rs 13.97 crore as compared to Rs 8.09 crore in Q3-2015 and nil revenue in Q2-2016. Soccer segment reported lower YoY operating loss of Rs 26.11 crore as compared to Rs 35.21 crore, but higher QoQ than the Rs 8.57 crore.

     

    Den’s Total Expenditure in the current quarter increased 15.3 per cent YoY to Rs 365.23 crore (103.7 per cent of TIO) as compared to Rs 316.74 crore (117.8 per cent of TIO) and increased nine per cent QoQ as compared to Rs 335.04 crore (123.5 per cent).

     

    Content cost in Q3-2016 increased 19.9 per cent YoY to Rs 131.94 crore (37.5 per cent of TIO) as compared to Rs 110.06 crore (40.9 per cent of TIO), but reduced 3.5 per cent YoY as compared to Rs 136.77 crore (50.4 per cent of TIO).

     

    Finance costs in the current quarter reduced 15.7 per cent YoY to Rs 19.73 crore (5.6 per cent of TIO) as compared to Rs 23.41 crore (8.7 per cent of TIO) and reduced 7.2 per cent QoQ as compared to Rs 21.25 crore (7.8 per cent of TIO).

  • Hathway launches dedicated online portal for LCOs

    Hathway launches dedicated online portal for LCOs

    MUMBAI: With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect.

     

    Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience.

     

    Hathway Cable & Datacom CEO and managing director Jagdish Kumar said, “In the era of technology and digitisation, the world is shrinking and we are living technology. The C&S industry in India has seen major changes in the last 5 years and as we move forward, technology will form an integral part of how the cable industry performs and matches customer expectations. Through Hathway Connect, we aim to empower our LCO partners with technology and business tools that will upgrade the way they do business on a daily basis and transform customer experience.”

     

    The digitisation era has raised several questions about the existence of the LCO in the cable value chain. With this disruptive move, Hathway aims to strengthen the role of the LCO even further in reaching out to its subscribers and delivering world-class entertainment with unmatched customer service levels.

     

    Hathway Cable & Datacom president – video business TS Panesar added, “Our LCO partners have been the backbone of this industry, the heart of our business, which we truly recognise and appreciate. Through the new online portal, we aim to empower them to run their business independently and upgrade customer experience levels, thus, becoming competitive with the industry.”

     

    Some salient features that the online portal offers are: online activation of new customer (E-CAF), pack management, balance management including integration with bill desk, customer prepaid option, sending customised notifications to subscribers, specialised LCO help desk and self-care through mobile app amongst many others.

     

    Panesar said that these features will help LCOs scale up operations, create efficient and seamless processes with the overall objective of giving customers the best offering.

  • Hathway launches dedicated online portal for LCOs

    Hathway launches dedicated online portal for LCOs

    MUMBAI: With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect.

     

    Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience.

     

    Hathway Cable & Datacom CEO and managing director Jagdish Kumar said, “In the era of technology and digitisation, the world is shrinking and we are living technology. The C&S industry in India has seen major changes in the last 5 years and as we move forward, technology will form an integral part of how the cable industry performs and matches customer expectations. Through Hathway Connect, we aim to empower our LCO partners with technology and business tools that will upgrade the way they do business on a daily basis and transform customer experience.”

     

    The digitisation era has raised several questions about the existence of the LCO in the cable value chain. With this disruptive move, Hathway aims to strengthen the role of the LCO even further in reaching out to its subscribers and delivering world-class entertainment with unmatched customer service levels.

     

    Hathway Cable & Datacom president – video business TS Panesar added, “Our LCO partners have been the backbone of this industry, the heart of our business, which we truly recognise and appreciate. Through the new online portal, we aim to empower them to run their business independently and upgrade customer experience levels, thus, becoming competitive with the industry.”

     

    Some salient features that the online portal offers are: online activation of new customer (E-CAF), pack management, balance management including integration with bill desk, customer prepaid option, sending customised notifications to subscribers, specialised LCO help desk and self-care through mobile app amongst many others.

     

    Panesar said that these features will help LCOs scale up operations, create efficient and seamless processes with the overall objective of giving customers the best offering.

  • Q3-2016: Ortel Communications’ YoY revenue up 22%

    Q3-2016: Ortel Communications’ YoY revenue up 22%

    BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported YoY revenue (Total Income from Operations or TIO) of 21.8 per cent at Rs 48.03 crore in the current quarter (quarter ended 31 December, 2015, Q3-15) as compared to Rs 39.44 crore and 4.9 per cent QoQ growth as compared to Rs 45.79 crore.

     

    The company reported PAT in Q3-2016 at Rs 3.89 crore (8.1 per cent margin) as compared to a loss of Rs 0.1 crore in Q3-2015 and 37.5 per cent higher QoQ PAT as compared to Rs 2.83 crore (6.2 per cent margin).

     

    Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

     

    Notes: 100,00,000 = 100 lakh = 10 million = 1 crore

    The numbers mentioned in this report are standalone.

     

    The company’s cable segment reported 17.3 per cent YoY growth in revenue at Rs 31.99 crore in the current quarter as compared to Rs 27.27 crore and 3.4 per cent QoQ growth as compared to Rs 30.93 crore. This segment reported 46.6 per cent YoY growth in operating profit of Rs 13.61 crore in Q3-2016 as compared to Rs 9.28 crore and 4.1 per cent QoQ growth as compared to Rs 13.08 crore.

     

    Ortel’s broadband segment reported 16.3 per cent higher revenue at Rs 8.28 crore as compared to Rs 7.12 crore in the corresponding year ago quarter and 1.7 per cent more than the Rs 8.14 crore in Q2-2016. The broadband segment reported an operating profit of Rs 4.78 crore in the current quarter as compared to Rs 4.52 crore in Q3-2015 and 9.1 per cent higher than the Rs 438 crore in Q2-2016.

     

    Ortel president and CEO Rath said, “I am delighted to share that our key strategy of LCO buyout is receiving huge response in our markets. Healthy addition to RGUs has led to strong growth of 38 per cent in bottom-line on a Q-o-Q basis. Given the strong pipeline of RGUs yet to be integrated, we are confident of improving upon this solid performance in the coming quarters.”

     

    “Broadband business continues to do well and remains a key focus area for us. We are working towards delivering notable growth in subscriber base, which would further augment our performance and overall profitability,” he added.

     

    “FY2016 will be one-of-the-best-years in the history of Ortel Communications backed by record RGU additions and solid visibility for LCO buyouts in the coming year. With more than 90 per cent subscribers on ‘last mile,’ we remain committed to this model and strongly believe it will create tremendous value for all stakeholders going forward,” Rath said.

     

    Ortel’s YoY revenue generating units (RGU) grew 19 per cent to 626,475 as compared to 526,551 and increased 9.6 per cent QoQ as compared to 571,834 in Q2-2016.

     

    Cable TV RGUs increased 19.3 per cent YoY in Q3-2016 to 558,766 as compared to 468,274 and increased 10 per cent as compared to 508,171 in Q2-2016.

     

    Ortel’s YoY primary digital cable RGUs grew 33.9 per cent to 127,098 in Q3-2016 as compared to 94,926 and grew 8.3 per cent QoQ to 117,401. The company says that its Cable TV penetration stood at 23.7 per cent and penetration in the current quarter.

     

    Broadband customers in the current quarter grew 16.2 per cent YoY to 67,709 as compared to 58,277 and grew 6.4 per cent QoQ as compared to 63,663.

     

    Ortel reported a slight drop in digital and analogue cable ARPUs in the current quarter. Digital cable ARPU in Q3-2016 was Rs 181; in Q3-2015 it was Rs 186 and Q2-2016 it was Rs 183. Analogue cable ARPU in Q3-2016 was Rs 141, in Q3-2015 it was Rs 147 and in Q2-2016 it was Rs 143. Broadband ARPU in Q3-2016 was higher at Rs 396, while in Q3-2015 it was Rs 394 and in Q2-2016 it was Rs 395.

     

    Cable Subscription, Connection and Channel carriage fees

     

    The company’s cable subscription fees in Q3-2016 increased 6.5 per cent to Rs 21.2 crore as compared to Rs 19.9 crore and was 3.2 per cent more than the Rs 20.6 crore in Q2-2016. Connection fees increased 32.7 per cent to Rs 1 crore as compared to Rs 0.70 crore and increased 33.8 per cent as compared to Rs 0.7. Channel carriage fees in the current quarter increased 48.3 per cent to Rs 9.8 crore as compared to Rs 6.6 crore in Q3-2015 and increased 1.4 per cent as compared to Rs 9.7 crore in Q2-2016.

     

    Let us look at the other numbers reported by Ortel:

     

    Total Expenditure in Q3-2016 increased 16.2 per cent YoY Rs 39.78 crore (82.8 per cent of TIO) as compared to Rs 34.24 crore (86.8 per cent of TIO) and was 2.8 per cent more than Rs 38.72 crore (84.6 per cent of TIO) in Q2-2016.

     

    The company’s programming cost in the current quarter increased 9.7 per cent to Rs 9.1 crore as compared to Rs 8.3 crore in Q3-2015, but declined 3.3 per cent as compared to Rs 9.44 crore in Q2-2016.

     

    Bandwidth cost in Q3-2016 increased 25.4 per cent to Rs 2.1 crore as compared to Rs 1.7 crore and increased 9.1 per cent as compared to Rs 1.92 in Q2-2016.

     

    Employee Benefits Expense in the current quarter increased 31.6 per cent to Rs 5.7 crore as compared to Rs 4.3 crore in Q3-2015 and increased 0.6 per cent as compared to Rs 5.64 crore e in Q2-2016.

     

    Lower interest costs

     

    SREI Equipment Finance Limited, the largest lender of the company, extended a prompt payment rebate (PPR) of one per cent on the company’s borrowings with effect from 1 October, 2015. This is in addition to the earlier rebate of 0.75 per cent, which would bring down the effective interest rate to 14.25 per cent.

  • Q3-2016: Ortel Communications’ YoY revenue up 22%

    Q3-2016: Ortel Communications’ YoY revenue up 22%

    BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported YoY revenue (Total Income from Operations or TIO) of 21.8 per cent at Rs 48.03 crore in the current quarter (quarter ended 31 December, 2015, Q3-15) as compared to Rs 39.44 crore and 4.9 per cent QoQ growth as compared to Rs 45.79 crore.

     

    The company reported PAT in Q3-2016 at Rs 3.89 crore (8.1 per cent margin) as compared to a loss of Rs 0.1 crore in Q3-2015 and 37.5 per cent higher QoQ PAT as compared to Rs 2.83 crore (6.2 per cent margin).

     

    Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

     

    Notes: 100,00,000 = 100 lakh = 10 million = 1 crore

    The numbers mentioned in this report are standalone.

     

    The company’s cable segment reported 17.3 per cent YoY growth in revenue at Rs 31.99 crore in the current quarter as compared to Rs 27.27 crore and 3.4 per cent QoQ growth as compared to Rs 30.93 crore. This segment reported 46.6 per cent YoY growth in operating profit of Rs 13.61 crore in Q3-2016 as compared to Rs 9.28 crore and 4.1 per cent QoQ growth as compared to Rs 13.08 crore.

     

    Ortel’s broadband segment reported 16.3 per cent higher revenue at Rs 8.28 crore as compared to Rs 7.12 crore in the corresponding year ago quarter and 1.7 per cent more than the Rs 8.14 crore in Q2-2016. The broadband segment reported an operating profit of Rs 4.78 crore in the current quarter as compared to Rs 4.52 crore in Q3-2015 and 9.1 per cent higher than the Rs 438 crore in Q2-2016.

     

    Ortel president and CEO Rath said, “I am delighted to share that our key strategy of LCO buyout is receiving huge response in our markets. Healthy addition to RGUs has led to strong growth of 38 per cent in bottom-line on a Q-o-Q basis. Given the strong pipeline of RGUs yet to be integrated, we are confident of improving upon this solid performance in the coming quarters.”

     

    “Broadband business continues to do well and remains a key focus area for us. We are working towards delivering notable growth in subscriber base, which would further augment our performance and overall profitability,” he added.

     

    “FY2016 will be one-of-the-best-years in the history of Ortel Communications backed by record RGU additions and solid visibility for LCO buyouts in the coming year. With more than 90 per cent subscribers on ‘last mile,’ we remain committed to this model and strongly believe it will create tremendous value for all stakeholders going forward,” Rath said.

     

    Ortel’s YoY revenue generating units (RGU) grew 19 per cent to 626,475 as compared to 526,551 and increased 9.6 per cent QoQ as compared to 571,834 in Q2-2016.

     

    Cable TV RGUs increased 19.3 per cent YoY in Q3-2016 to 558,766 as compared to 468,274 and increased 10 per cent as compared to 508,171 in Q2-2016.

     

    Ortel’s YoY primary digital cable RGUs grew 33.9 per cent to 127,098 in Q3-2016 as compared to 94,926 and grew 8.3 per cent QoQ to 117,401. The company says that its Cable TV penetration stood at 23.7 per cent and penetration in the current quarter.

     

    Broadband customers in the current quarter grew 16.2 per cent YoY to 67,709 as compared to 58,277 and grew 6.4 per cent QoQ as compared to 63,663.

     

    Ortel reported a slight drop in digital and analogue cable ARPUs in the current quarter. Digital cable ARPU in Q3-2016 was Rs 181; in Q3-2015 it was Rs 186 and Q2-2016 it was Rs 183. Analogue cable ARPU in Q3-2016 was Rs 141, in Q3-2015 it was Rs 147 and in Q2-2016 it was Rs 143. Broadband ARPU in Q3-2016 was higher at Rs 396, while in Q3-2015 it was Rs 394 and in Q2-2016 it was Rs 395.

     

    Cable Subscription, Connection and Channel carriage fees

     

    The company’s cable subscription fees in Q3-2016 increased 6.5 per cent to Rs 21.2 crore as compared to Rs 19.9 crore and was 3.2 per cent more than the Rs 20.6 crore in Q2-2016. Connection fees increased 32.7 per cent to Rs 1 crore as compared to Rs 0.70 crore and increased 33.8 per cent as compared to Rs 0.7. Channel carriage fees in the current quarter increased 48.3 per cent to Rs 9.8 crore as compared to Rs 6.6 crore in Q3-2015 and increased 1.4 per cent as compared to Rs 9.7 crore in Q2-2016.

     

    Let us look at the other numbers reported by Ortel:

     

    Total Expenditure in Q3-2016 increased 16.2 per cent YoY Rs 39.78 crore (82.8 per cent of TIO) as compared to Rs 34.24 crore (86.8 per cent of TIO) and was 2.8 per cent more than Rs 38.72 crore (84.6 per cent of TIO) in Q2-2016.

     

    The company’s programming cost in the current quarter increased 9.7 per cent to Rs 9.1 crore as compared to Rs 8.3 crore in Q3-2015, but declined 3.3 per cent as compared to Rs 9.44 crore in Q2-2016.

     

    Bandwidth cost in Q3-2016 increased 25.4 per cent to Rs 2.1 crore as compared to Rs 1.7 crore and increased 9.1 per cent as compared to Rs 1.92 in Q2-2016.

     

    Employee Benefits Expense in the current quarter increased 31.6 per cent to Rs 5.7 crore as compared to Rs 4.3 crore in Q3-2015 and increased 0.6 per cent as compared to Rs 5.64 crore e in Q2-2016.

     

    Lower interest costs

     

    SREI Equipment Finance Limited, the largest lender of the company, extended a prompt payment rebate (PPR) of one per cent on the company’s borrowings with effect from 1 October, 2015. This is in addition to the earlier rebate of 0.75 per cent, which would bring down the effective interest rate to 14.25 per cent.

  • Siticable & Fastway resolve dispute; yet to sign interconnect agreement

    Siticable & Fastway resolve dispute; yet to sign interconnect agreement

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked Siticable Services Pvt Ltd not to re-transmit the signals of any broadcasters in the area of Panchkula unless a proper interconnect agreement with Fastway Transmission comes into existence.

     

    Earlier, TDSAT chairtman Justice Aftab Alam and members Kuldip Singh and B B Srivastava were told that both sides had arrived at an agreement.

     

    TDSAT disposed of the petition after it was told that all that remained was the formal execution of the interconnect agreement.

     

    The petition had been filed by Fastway against Siticable and Star India.

  • Siticable & Fastway resolve dispute; yet to sign interconnect agreement

    Siticable & Fastway resolve dispute; yet to sign interconnect agreement

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked Siticable Services Pvt Ltd not to re-transmit the signals of any broadcasters in the area of Panchkula unless a proper interconnect agreement with Fastway Transmission comes into existence.

     

    Earlier, TDSAT chairtman Justice Aftab Alam and members Kuldip Singh and B B Srivastava were told that both sides had arrived at an agreement.

     

    TDSAT disposed of the petition after it was told that all that remained was the formal execution of the interconnect agreement.

     

    The petition had been filed by Fastway against Siticable and Star India.