ITV

Category: Cable TV

  • Den Network gets board nod to include primary market route for foreign investment

    Den Network gets board nod to include primary market route for foreign investment

    MUMBAI: Den Network’s board of directors has given its nod for filing of application to Foreign Investment Promotion Board (FIPB) for modification of the approval to include the primary market route as well. 

     

    The primary market route could  include issuance of long term securities including equity, quasi equity, GDR, QIP, FCCB, preferential allotment, bonds or any other appropriate securities, subject to the approval of the shareholders and all other applicable laws and statutory approvals as may be required.

     

    The board considered that the company has already got the approval from FIPB, Ministry of Finance on 14 August, 2015 to increase foreign investment limit in the company beyond 49 per cent and up-to 74 per cent by FIIs, NRIs, FPls and other eligible foreign investors through the route of secondary market and open market purchase. 

     

    It may be recalled that late last month, the Reserve Bank of India (RBI) too gave the company its approval for foreign investors to raise their stake in the company up to 74 per cent.

     

    At the end of the September quarter (Q2-2016), foreign portfolio investors (FPIs) held a 22.79 per cent stake in the company, whereas the promoters’ stake in the cable operator was 40.05 per cent.

     

    The company’s Board of Directors, at its meeting held on 3 November, also approved the resignation of nominee director of the company Shahzaad S Dalal. 

     

    Den also approved the appointment of Krishna Kumar as non executive nominee director of the company.  

     

    Den Network will also seek approval from the Ministry of Information and Broadcasting (MIB) and statutory authorities for the appointment of Archana Hingorani as non-executive nominee director.

  • Shift to broadband in US cable industry will mitigate TV subscriber loss: Moody’s

    Shift to broadband in US cable industry will mitigate TV subscriber loss: Moody’s

    BENGALURU: Rising demand for broadband services will compensate for the loss in TV video subscribers and help sustain industry growth through 2016, says Moody’s Investors Service. As a result, the rating agency maintains its stable outlook on the US cable industry.

     

    Broadband gaining ground, video slides, voice stable

     

    Key takeaway:

    The key takeaway is that the broadband offset is substantial, and much higher than in the past couple of years. In 2013, for every video subscriber lost, cable signed up 1.4 broadband customers. In 2016, Moody’s are projecting a 2.4x multiple.

     

    Broadband subscribers outnumbered total video subscribers in Moody’s rated universe for the first time at the end of 2014, and the agency forecasts that this spread will widen to seven per cent by the end of 2016 as demand for broadband continues to grow.

     

    “This change in subscriber demand represents a fundamental shift in consumer appetite and the economics of the cable business model,” said Moody’s vice president and senior analyst Jason Cuomo. “The loss of video subscribers is a fundamental weakness, but broadband demand and pricing actions are more than fully offsetting the negative video trends.”

     

    The report says that broadband demand continues to grow faster than pay-TV subscriber losses. Companies in Moody’s rated universe had a little more than 126 million (12.6 crore) Revenue Generating Units (RGU – equal to the number of subscriptions at a service level) at the end of last year. Moody’s project that RGUs will grow to over 130 million (13 crore) by the end of 2016, representing a CAGR of approximately 1.7 per cent. Broadband is now the leading product, as video continues to slide and the number of phone customers holds steady.

     

    Moody’s says that the number of pay-TV subscribers in its universe has gone done from 50 million (5 crore) in 2013 at the rate of about 1 million (10 lakh) per year and its predicts that by 2016, the number will reduce to 46 million (4.6 crore). During the same period, broadband subscribers would increase from 49 million (4.9 crore) in 2013 to 57 million (5.7 crore) by 2016. Voice subscribers in 2013 at 25 million (2.5 crore) would increase to 27 million (2.7 crore) by 2016.

     

    Phone subscribers have also been growing between three – four per cent, but the report says that the pace is trending down and could moderate to below two per cent by 2016.

     

    Lower revenues, better margins

     

    This mix shift has changed the economics of the business, with the top line suffering from the loss in video revenues, while creating opportunities to grow EBITDA and margins that are better in broadband.

     

    The industry continues to raise prices for broadband services, driving average revenue per unit higher. Demand is being largely driven by video consumption, which requires more and faster bandwidth, positioning cable companies to further monetize their high-speed distribution system. At the centre of this transformation is streaming content “over-the-top” to deliver video-on-demand services, which is growing quickly, according to the report “Pricing, Broadband Demand Ease Pressure from TV Subscriber Losses.”

     

    The report says that Broadband generates much lower revenues than residential TV, (roughly half, on average) but much higher margins and EBITDA per customer. In addition, the business is growing much faster than the rate of loss in video subscribers (more than 2:1,) which supports both revenue and profits.

     

    Pay-TV produces the highest revenue per customer among the three main service offerings, significantly exposing the top line when subscribers defect. To put the risk in context, Charter’s annual video revenue per residential subscriber was $1,068 in 2014, much higher than the $540 for residential broadband and $235 for residential phone service. However, programming costs are high, and rising despite the loss of revenue, squeezing EBITDA and margins.

     

    The net effect of the mix shift is revenue growth of nearly four per cent, a rise in EBITDA of approximately three – four per cent, and relatively stable EBITDA margins of 38-39 per cent.

     

    “Despite the concerns that the cable industry is about to lose its competitive footing, it still maintains a steady share of the triple-play bundle — offering a package of video, broadband and phone services,” said Cuomo.

     

    Growth drivers are new subscribers, SMEs

     

    The large majority of growth is coming from new residential customers. Commercial is only a small contribution but growing quickly. Small to medium-sized business demand for broadband is growing and cable is attracting their business with competitive speeds. Time Warner Cable and Charter, for example, have reported growth rates over the last four years that average 15 per cent and 22 per cent, respectively.

     

    Although their commercial businesses are less than five per cent of total revenues, for both companies, new commercial broadband subscribers represented approximately eight per cent of all new broadband subscribers in 2014.

     

    Video going over-the-top, but on cable’s terms

     

    In video, the big story continues to be consumer demand for viewing content ‘Over-the-Top’ (OTT) on multiple devices — arguably the number one threat facing cable. OTT is the epicentre of risk in an industry at the very early stages of a rapid transformation. The speed of broadband, proliferation of devices, and emergence of content streamers such as Netflix Inc. have made this type of “non-linear” alternate possible. The pace is accelerating (Netflix now has over 40 million subscribers, starting from zero in 2007 when it was first introduced in the US) as the awareness of alternate viewing options grows. This may also be at least partially responsible for driving subscriber losses — although Moody’s believes the great majority of users are also pay-TV subscribers that migrated OTT as a complimentary service.

     

    Content companies facing huge challenge

     

    Rapid development of new content, more widely distributed through new media channels, over a larger number of devices, and at lower cost, is a huge challenge for content owners struggling to maintain market leverage by controlling content rights. Extracting value from every property they own is easier when it’s all sold in a bundle. This neat and simple packaging model is beginning to break down, however, as content is offered in skinnier bundles and a la carte. In this model, the value shifts to the highest-quality content assets, exposing those with lower viewer ratings and therefore lesser value.

     

    As the industry transforms, the friction of change could temporarily slow video-subscriber defections. The move to OTT can be stalled by a rise in broadband price or recognition that stacking OTT content is more costly than expected, especially when buying sports and other high-value content. Content unbundling and programming offered via apps may also create confusion and inconvenience for the customer. Issues including new bills to manage, more frequent ID authentications, and the need to search, find, and switch between apps may end up being more cumbersome than simply switching channels on a cable remote. Until addressed, these issues will help cable buy time.

     

    Cable’s pricing power is driving ARPU higher

     

    The industry has consistently raised prices as they continue to pass through most of the rising programming costs and charge higher rates for more services. This pricing power could rise further once pending acquisitions are completed. Based on Moody’s forecast for ARPU of $837 by the end of 2016, the CAGR will be approximately 2.5 per cent from 2013 with a slope in ARPU that has been essentially linear, despite the rise in competitive threats. This has been largely driven by the rise in content costs, but can also occur as owners attempt to reprice OTT programming on the same, or similar, terms as current pay-TV economics.

     

    Moody’s expect this trend to continue given cable’s strong market position. In particular, we think the cable industry is positioning itself to charge higher prices for broadband to offset the loss in video ARPU. This could come in the form of higher prices for more data consumption, faster speeds, data limits that force customers to pay for higher speeds, or a fee for the use of Wi-Fi hot spots, which so far has been free. Given the high cost of mobile broadband and limited coverage of mobile Wi-Fi, viewing streaming video in-home, on cable Wi-Fi is currently one of the lowest-cost/highest-quality experiences available — and ripe for price increases.

     

    While there is healthy growth in prices, competition will keep growth rational. Another major constraint to higher broadband pricing is regulation, now that broadband is subject to Title II of the Communications Act of 1934. Price hikes are likely to be tolerated by regulators, but only as long as they are reasonable and customary. The government has stated that they are disinterested in pricing regulation, but their position would likely change if prices rose aggressively and consumer complaints mount. Moody’s outlook assumes no regulatory intervention.

     

    Industry Consolidation

     

    Moody’s notes that industry consolidation resulted in a number of transformative deals over the past year, but further consolidation is unlikely through 2016 given the size and concentration of the largest and smaller players.

  • Q3-2015: Time Warner Cable – residential Internet data ascend, video slide; Business Services numbers up

    Q3-2015: Time Warner Cable – residential Internet data ascend, video slide; Business Services numbers up

    BENGALURU: The slide in retail or residential video numbers continues for the US television cable industry, if one were to go by the numbers reported by Comcast Cable Communications division and now by Time Warner Cable Inc., (TWC) for the quarter ended 30 September, 2015 (Q3-2015). Data, or more specifically high speed data continues its juggernaut, climbing YoY and QoQ.  The company’s Business Services segment reported increase in numbers across all parameters.

    TWC’s consolidated revenue in the current quarter increased 3.6 per cent (increased by $208 million) to $5922 million from $5714 million in Q3-2014, but declined marginally (declined by 0.1 per cent or $4 million) from $5926 million in the immediate trailing quarter.

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

    Subscription numbers have been mentioned in lakhs and revenue and other financial numbers in millions of US dollars.

    Time Warner Cable chairman and CEO Rob Marcus said, “I’m very excited about the operating momentum reflected in our third-quarter results. Subscriber growth was the strongest in years; revenue growth accelerated; and we continued to make significant investments in our network, equipment, products and customer service. Our ongoing transformation is a testament to the strength of our operating plan and the commitment of our entire team – all 55,000 employees – who work tirelessly every day to make Time Warner Cable an even better company.”

    Residential numbers

    Customer relationships

    For Q3-2015, TWC has reported amongst the best subscriber numbers over a long time, and this improvement is reflected by the low drop in video numbers of only 7000 that the company has reported. Residential High Speed Internet Data (Data) and Voice customers have both increased YoY and QoQ basis. Voice has shown the largest YoY and QoQ growth in terms of number of subscribers as well as in percentage terms.  

    Overall, TWC’s total customer relationships (including business services) increased 3.3 per cent (increased by 472,000) in Q3-2015 to 156.63 lakh from 151.31 lakh in Q3-2015 and by 1.1 per cent (increased by 163,000) from 155 lakh in the previous quarter. Please refer to Fig A below.

    Residential or retail customer relationships improved to an all-time high of 149.29 lakh in the current quarter as compared to the 144.57 lakh in Q3-2014 or the 147.82 lakh in the previous quarter.  

    Business Services saw increase across all three plays, both YoY and QoQ. Business Services customer relationships increased 8.9 per cent (increased by 60,000) YoY to 734,000 in Q3-2015 from 674,000 in Q3-2014 and increased by 2.2 per cent (increased by 16,000) from 718,000 in Q2-2015.

    Video Numbers

    Please refer to Fig B below.

    Video revenue declined 1.8 per cent (declined $44 million) YoY in Q3-2015 to $ 2453 million from $2497 million and declined 2.4 per cent from $2514 million in the immediate trailing quarter. Video customer relationships declined 0.6 YoY to 107.67 lakh from 108.27 lakh and declined QoQ from 107.74 lakh.

    Within TWC’s Video segment, six products or sub-segments contribute to revenue. The major segment is Programming tiers, which contributed $1566 million or about 64 per cent to Video revenue and more than 26 per cent to TWC’s consolidated revenue in the current quarter. The other sub-segments are Premium networks ($216 million, about nine per cent of video revenue in Q3-2015); Transactional Video-on-demand ($45 million, about two per cent of video revenue in Q3-2015); Video equipment rental and installation charges ($362 million, about 15 per cent of Video revenue in Q3-2015); Digital video recorder service ($150 million, about six per cent of Video revenue for Q3-2015) and Franchisee and other fees ($114 million, about five per cent of Video revenue for Q3-2015).

    Except for Premium tiers and Video equipment rental and installation charges, revenue from all the other sub-segments declined both YoY and QoQ. 

    High Speed Internet (Data) numbers

    Data revenue increased 9.4 per cent (increased $152 million) in the current quarter to $1772 million from $1620 million in Q3-2014 and increased 1.7 per cent (increased $30 million) from $1742 million in the immediate trailing quarter.

    TWC’s Data customer relationships in the current quarter increased 7.7 per cent YoY to 123.94 lakh from 119.90 lakh and 1.9 per cent QoQ from 121.62 lakh, while voice customers increased 22.1 per cent YoY to 60.93 lakh in the current quarter from 49.89 lakh in Q3-2014 and by four per cent from 58.56 lakh in the previous quarter. Please refer to C below.

    Voice Numbers

    TWC’s Voice revenue increased 1.5 per cent (increased $7 million) to $483 million in the current quarter from $476 million in Q3-2014 and increased one per cent (increased by $5 million) in the immediate trailing quarter.

    Voice subscribers increased 22.1 per cent (increased by 1,104,000) to 60.93 lakh in Q3-2015 from 49.89 lakh in Q3-2014 and increased four per cent (increased 237,000) from 58.56 lakh in Q2-2015.

    Single Play, double play and triple play

    The company’s residential single play customer relationships have been slowly increasing over time. Single play relationships in the current quarter increased by 0.6 per cent (35,000) to 57.09 lakh YoY from 56.74 lakh and by 0.9 per cent (50,000) from 56.59 lakh. Please refer to Fig D below.

    Double play customers have been declining over time, with the decline steepening even further since Q3-2014. In the current quarter, double play customer declined YoY by double digits – 12.4 per cent (declined 585,000) to 41.14 lakh from 47 lakh and declined 2.9 per cent (declined 121,000) QoQ from 42.36 lakh.

    Triple play customers have been increasing, the increase becoming more rapid since Q3-2014, indicating to an extent that double play customers were adding one more play, rather than the company losing double play customers, besides adding more new customers for residential triple play. Triple play customers in Q3-2015 increased 25 per cent (increased 1,022,000) to 51.05 lakh from 40.83 lakh in the corresponding year ago quarter and increased 4.5 per cent (increased 218,000) from 48.87 lakh in Q2-2015.

    Business Services

    While TWC’s Business services segment had only 4.7 per cent of TWC’s overall customer relationships, it contributed 14.1 per cent to TWC’s consolidated revenue. As a matter of fact, its contribution to TWC’s revenue has been increasing much faster than the increase in its customer relationship share in the overall pie. BS revenue in the current quarter increased 15.5 per cent (increased by $112 million) in Q3-2015 to $836 million (14.1 per cent of consolidated revenue from 4.7 per cent of overall customer relationships) from $724 million (12.7 per cent of consolidated revenue from 4.5 per cent of overall customer relationships) in the corresponding year ago quarter and increased 4.1 per cent (increased by $33 million) from $803 million (13.6 per cent of consolidated revenue from 4.6 per cent of overall customer relationships) in the immediate trailing quarter. Please refer to Fig E below.

    Revenue from Business Services High Speed data was more than 4 times the revenue from Business services video sub-segment or product in Q3-2015.

  • Q3-2015: Comcast Cable revenue up 6.3%, loses 48K video subs; NBCU shines

    Q3-2015: Comcast Cable revenue up 6.3%, loses 48K video subs; NBCU shines

    BENGALURU: Comcast Corporation’s (Comcast) Cable Communications reported revenue growth of 6.3 per cent at $11,740 million in the quarter ended 30 September, 2015 (Q3-2015, current quarter) as compared to the $11,041 million in the corresponding year ago quarter. The segment’s revenue in the current quarter was almost flat (increased by 0.09 per cent) as compared to $11,729 million reported for the immediate trailing quarter.

     

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

    Subscription numbers have been mentioned in lakhs and revenue and other financial numbers in millions of US dollars.

     

    Operating cash flow of Comcast’s Cable Communications in Q3-2015 improved 6.4 per cent to $4748 million (40.4 per cent margin) as compared to the $4,464 million (40.4 per cent margin) in Q3-2014.

     

    In terms of decline in video customers, Comcast’s Cable Communication reported the best quarter among the last nine quarters. The company lost only 48,000 video customers in Q3-2015 as compared to the decline of 69,000 in Q2-2015.

     

    Comcast NBCUniversal segment reported a 20.8 per cent growth in revenue at $7,151 million in the current quarter as compared to the $5,921 million in Q3-2014. Operating cash flow of the segment in Q3-2015 improved 17 per cent to $1,657 million as compared to the $1,416 million in Q3-2014.

     

    Overall, Comcast reported a 11.2 per cent growth in consolidated revenue (excluding Olympics and Super Bowl) at $18,669 million as compared to the $16,791 million in the corresponding year ago quarter. Operating Income in Q3-2015 increased 6.9 per cent to $4001 million as compared to the $3745 million in Q3-2014, while Free Cash Flow increased 6.8 per cent to $2663 million as compared to $2494 million in Q3-2014. Earnings per share in the current quarter however declined 19.2 per cent to $0.80 as compared to $0.99 in Q3-2014.

     

    Comcast chairman and CEO Brian L Roberts said, ”I’m pleased to report that our businesses generated outstanding revenue and operating cash flow growth for the third quarter of 2015. At Cable Communications, overall customer relationships increased 156,000, a 90 per cent improvement compared to last year, video subscriber results were the best for a third quarter in nine years, high-speed Internet subscriber results were the best for a third quarter in six years, and churn across all product categories continues to improve. NBCUniversal also delivered terrific results, including another record-breaking box office quarter driven by Minions and Jurassic World, the highest summer attendance ever at our theme parks, and maintaining the #1 broadcast network ranking for five summers in a row. These outstanding results from our unique portfolio of complementary businesses underscore our confidence that we are well positioned to compete, continue our strong performance and drive shareholder value.”

     

    Cable Communications numbers

     

    Six sub-segments contribute to Comcast’s Cable Communications – Video; High Speed Internet; Voice; Business Services; Advertising; and ‘Other.’

     

    Growth in revenue was driven by increases of 10.2 per cent in high-speed Internet revenue, 19.5 per cent in business services and 3.3 per cent in video. The company says that the increase in Cable revenue reflects increased customer relationships, customers receiving higher levels of service and customers taking additional services, as well as rate adjustments.

     

    Customer relationships

     

    Overall, Cable Communications customer relationships in Q3-2015 increased to 274.21 lakh as compared to 268.57 lakh in Q3-2014. During Q3-2015, the segment saw net addition of 156,000 customer relationships as compared to the net addition of 82,000 in the corresponding year ago quarter.

     

    Single, double and triple play customers

     

    While the number of single product customers in the current quarter was lower at 83.67 lakh, it grew by 24,000, as compared to the 84.44 lakh in Q3-2014, which saw a decline of 66,000. Double Product customers were higher at 90.66 lakh in Q3-2015 as compared to 86.50 lakh in Q3-2014. In Q3-2015, the number of double product customers increased by 130,000 as compared to the increase of 76,000 in Q3-2014. Triple Product customers in Q3-2015 increased to 99.88 lakh as compared to 97.63 lakh in the corresponding year ago quarter. Q3-2015 saw the number of triple product customers’ increase by a mere 1,000 as compared to the increase of 72,000 n Q3-2014.

     

    Video

    Revenue from Video improved 3.3 per cent to $5,348 million in Q3-2015 as compared to the $5,179 million in Q3-2014. For the current quarter, the company reported a net loss of 48,000 customers, while its customer base declined by 118,000 to 222.58 lakhs as compared to the 223.76 lakh customers in Q3-2014.

     

    High Speed Internet

    High Speed Internet revenue in the current quarter increased 10.2 per cent to $3,129 million as compared to the $2,840 million in Q3-2014.

     

    The company added 320,000 high speed internet customers in Q3-2015 and reported a customer base of 228.68 lakh. In Q3-2014, Cable Communications had added 315,000 customers and reported a high spend internet customer base of 215.86 lakh.

     

    Voice

    Despite a higher customer base, Voice revenue in Q3-2015 declined 1.4 per cent to $900 million as compared to the $913 million in the corresponding year ago quarter.

     

    Voice customer base in Q3-2015 increased to 113.36 lakh as compared to the 110.70 lakh in the corresponding quarter of last year. In Q3-2015, Cable Communications added only 17,000 customers as compared to the 68,000 in Q3-2014.

     

    Business Services revenue in Q3-2015 increased 19.2 per cent to $1,208 million as compared to the $1,011 million in Q3-2014.

     

    Advertising revenue in the current quarter was almost flat (declined 0.2 per cent) to $593 million as compared to $596 million in the corresponding year ago quarter.

     

    ‘Other’ revenue increased 11.2 per cent to $562 million in Q3-2015 as compared to the $ 502 in Q3-2014.

     

    NBCUniversal

     

    As mentioned above, NBCUniversal division revenue increased 20.8 per cent YoY in the current quarter, while Operating Cash Flow increased 17 per cent driven by strong results at Filmed Entertainment and Theme Parks.

     

    Four sub-segments add to NBCUniversal’s revenue – Cable Networks; Broadcast Television; Filmed Entertainment; and Theme Parks.

     

    Cable Networks reported seven per cent growth in operating revenue at $2,412 million in Q3-2015 as compared to the $2,255 million in the corresponding year ago quarter, driven by an 8.6 per cent increase in distribution revenue and a two per cent increase in advertising revenue, partially reflecting the introduction of NASCAR on Comcast’s sports network, NBCSN, as well as a 17.6 per cent increase in content licensing and other revenue. Operating cash flow decreased 3.9 per cent to $835 million compared to $868 million in Q3-2014, reflecting higher revenue, more than offset by increased sports programming costs, driven by the impact of NASCAR., informs the company.

     

    Broadcast Television revenue in the current quarter increased 11.3 per cent in Q3-2015 at $1,971 million as compared to the $1,770 million in Q3-2014 reflecting a 33.5 per cent increase in content licensing revenue, higher retransmission consent fees, and a 2.8 per cent increase in advertising revenue. Operating cash flow increased 6.1 per cent to $150 million compared to $142 million in Q3-2014, reflecting higher revenue, partially offset by an increase in programming and production costs associated with the timing of content provided under NBCUniversal’s licensing agreements and studio production costs.

     

    Filmed Entertainment revenue increased 64 per cent to $1,946 million in Q3-2015  as compared to the $1,186 million in the corresponding year ago quarter driven by higher theatrical revenue from the record performances of Minions andJurassic World, continuing on the earlier success of Furious 7. Operating cash flow increased $225 million to $376 million compared to $151 million in Q3- 2014, reflecting higher revenue, partially offset by an increase in the amortisation of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

     

    Theme Parks revenue increased 14.1 per cent to $876 million as compared to the $786 million in the corresponding year ago quarter reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley, as well as Fast and Furious: Supercharged at the Hollywood park. Q3-2015 operating cash flow increased 14.1 per cent to $458 million compared to $402 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support new attractions and $18 million of transaction-related costs associated with the development of a theme park in China.

  • Den Network gets RBI nod for increase in FDI to 74%

    Den Network gets RBI nod for increase in FDI to 74%

    BENGALURU: After receiving Foreign Investment Promotion Board’s (FIPB) permission to increase its foreign direct investment (FDI) limit from the existing 49 per cent to 74 per cent a few months ago, Den Network Limited has now received approval for the same from the Reserve Bank of India (RBI).

     

    A letter from Den Network’s company secretary Jatin Mahajan to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) says that the company has received approval from the RBI for increase in FDI limit beyond 49 per cent and up-to 74 per cent by Foreign Institutional Investors (FII), Non Resident Indians (NRI), Foreign Portfolio Investors (FPI) and other eligible foreign investors.

     

    The approval is subject to compliance Regulation 5(2) of FEMA Notification No 20/2000 RBI dated 3 May, 2000 (as amended time to time) issued under FEMA 1999 and conditions specified in FDI Policy circular dated 12 May, 2015.

     

    As was reported earlier by Indiantelevision.com, with this, the company which is currently building its broadband base and also working towards digitisation in phase III and IV areas, is looking at attracting overseas capital into the company.

     

    It can be noted that Den Networks had sought for increase in FDI limit beyond 49 per cent and up to 74 per cent by FIIs, NRIs, FPIs, and other eligible foreign investors through route of secondary market and / or open market purchase.

     

    Earlier in March this year, the Board of Directors of Den Networks had approved this proposal to increase foreign investment limit. The decision was subject to shareholder approval (through postal ballot), FIPB nod and adherence to all other statutory requirements.

     

    Currently, FIIs hold 22.79 per cent stake in Den Networks.

  • DEN networks to use Alcatel-Lucent’s GPON tech for broadband services

    DEN networks to use Alcatel-Lucent’s GPON tech for broadband services

    MUMBAI : DEN Networks will deploy Alcatel-Lucent’s GPON and IP routers to enable DEN Networks to launch ultra-broadband access services in India.

     

    DEN Networks is offering services in the fast-growing broadband market, where cable and satellite pay-TV subscribers are estimated to rise to 175 million by 2019, from 139 million today. With a customer base 13 million cable TV service over 200 cities, DEN Networks plans to use fiber-optic access technology to expand its ‘DEN Boomband’ broadband service to 8.5 million city homes within three years.

     

    Since September 2015, Alcatel-Lucent has been deploying its GPON (gigabit passive optical networking) fiber-to-the-home, Ethernet aggregation and Broadband Network Gateway IP routing technologies with DEN Networks, delivering services to new customers as well as those already served by the existing DOCSIS-based network. In some areas of the network Alcatel-Lucent’s technology is providing backhaul connectivity, with the existing coaxial cable being used for ‘last-mile’ service delivery.

     

    Alcatel-Lucent is providing its GPON technology, which includes the 7360 Intelligent Service Access Manager (ISAM) FX, the 7368 Intelligent Services Aware Manager ONT and the 5520 Access Management System (AMS) to enable high-speed ultra-broadband access for homes and businesses using both fiber-to-the-home and fiber-to-the-node technologies to serve individual and multi-dwelling residences.

     

    Alcatel-Lucent will also provide its IP routing and switching portfolio to Den Networks. The 7210 Service Access Switch will provide layer three aggregation and the 7750 Service Routers will act as a broadband network gateway for residential services. Network management and subscriber level reporting will be provided by the 5620 Service Aware Manager and 5670 Reporting and Analysis Manager respectively.

     

    Pradeep Parameswaran of DEN Networks said, “We are committed to delivering the fastest high speed experience to our business and residential subscribers in India. Broadband is our key thrust area and we constantly strive to make the experience fast and consistent for our customers. With Alcatel-Lucent’s fiber and IP routing solutions we now extend our high-speed Internet connectivity and services superfast surfing experience to more people and businesses around the country.”

     

    Srini Sundararajan of Alcatel-Lucent said, “Working with the DEN Networks on an in-depth study and trials, we were able to show how our IP routing and GPON technology would help it scale to better meet the growing demands of their customers.”

  • Comcast & Cartoon Network team up on new voice remote searches

    Comcast & Cartoon Network team up on new voice remote searches

    MUMBAI: Speech recognition technology is more popular than ever and in the past few months alone with related announcements from Amazon, Apple, and Google.

     

    Comcast launched the cable industry’s first voice controlled TV remote earlier this year and the response has been terrific with nearly 1.5 million homes now having one. What’s more Comcast is distributing about 70,000 new remotes each week.

     

    “Users are speaking aloud to find titles, channels, actors and actresses as well as to record, tune, fast forward and rewind. Last month alone, there were 20 million voice commands made using our new remote.

     

    We’ve added some fun features too: quoting certain movies gets you to the film just as fast as a title search, Taylor Swift talks back when you search for her songs, and our remote happens to speak perfect Minionese,” said Comcast Cable executive director, product management Jeanine Heck.

     

    Now Comcast has added another interactive component in partnership with the Cartoon Network, which will be especially entertaining for kids.

     

    “It turns out that one of our most ‘voice-searched’ titles is Teen Titans Go!, a Cartoon Network fan favorite. Now, just by saying ‘Hello Beast Boy’ or ‘Boy Wonder,’ viewers are taken to the show’s homepage on X1 and will hear a special audio greeting from one of the characters. They also can say the names of other Titans like Cyborg, Robin and Raven and hear responses unique to each character,” Heck added.

     

    Comcast is planning add more new functions to its voice remote over time.

  • Q2-2016: Ortel YoY revenue up 24.6 percent, PAT more than doubles

    Q2-2016: Ortel YoY revenue up 24.6 percent, PAT more than doubles

    BENGALURU: The Bibhu Prasad Rath-headed regional cable television and broadband internet player Ortel Communications Ltd  (Ortel) has reported a 24.6 percent growth in revenue from operations (TIO) at Rs 45.79 crore as in the quarter ended 30 September 2015 (Q2-2016, current quarter) as compared to the Rs 36.74 crore in the corresponding year ago quarter. TIO in the current quarter was also higher by 12.8 percent as compared to the Rs 40.6 crore in the immediate trailing quarter. 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 reported more than a doubling of PAT (up 2.3 times) to Rs 2.83 crore (5.9 percent margin) as compared to the Rs 1.23 crore (3 percent margin) in Q2-2015, and 15.9 percent more than the Rs 2.44 crore (5.7 percent margin) in the immediate trailing quarter.

     

    Ortel President and CEO Rath said, “I am glad to report a strong operational and financial performance for the quarter ended   September 30, 2015. Performance during the quarter was driven by healthy addition in revenue generating units (RGUs) which stood at 571,834. We are witnessing encouraging traction to our LCO buyout strategy in emerging markets like Andhra Pradesh and Chhattisgarh, and I am confident that this would sustain going forward. Going forward, we would continue with our strategy of aggressive LCO buyouts across all our markets and diligently integrate the new  subscribers into Ortel’s last mile network. Healthy contribution from new RGUs along with ongoing focus on the high margin Broadband business would enable us to deliver strong financial performance in the forthcoming years.”

     

    The company’s EBIDTA (TIO plus Depreciation and Amortisation plus Other Income plus Fixed assets written off minus Total Expenditure) increased 31.3 percent to Rs 17.29 crore (37.8 percent margin) in the current quarter as compared to the Rs 13.17 crore (35.8 percent margin) and increased 8.8 percent as compared to the Rs 15.89 crore (39.1 percent margin) in Q1-2016.

     

    Ortel’s YoY RGUs grew 9.2 percent to 571,834 in Q2-2016 from 523,833 in Q2-2015 and increased 5.5 percent from 542,217 in Q1-2016.

     

    Cable TV RGUs’ increased 9 percent in Q2-2016 to 508,171 from 466,305 in Q2-2015 and grew 5.6 percent from 481,317 in Q1-2016.

    Ortel’s YoY primary digital cable RGUs grew 33.2 percent to 117,401 in Q2-2016 from 88,106 and grew QoQ to 4.5 percent from 112,296 in Q1-2016. Analogue cable RGUs’ increased to 330,739 from 322,175 in Q2-2015 and from 307,923 in Q1-2016. The company says that its Cable TV penetration stood at 23.7 percent and penetration in select 10 towns where company offers digital services stands at 71 percent.

     

    Broadband customers grew 8.9 percent to 63,663 in the current quarter from 57,528 in Q2-2015 and grew 4.5 percent from 60,900 in Q1-2016.

     

    The company has reported a slight drop in digital and analogue cable and broadband ARPUs’ in the current quarter. Digital cable ARPU in Q2-2016 was Rs 183 in Q2-2016; Rs 187 in Q2-2015 and Rs 185 in Q1-2016. Analogue cable ARPU in Q2-2016 was Rs 143; in Q2-2015 it was Rs 147 and in Q1-2016, it was Rs 144. Broadband ARPU in Q2-2016 was Rs 183, in Q2-2015, it was Rs 187 and in Q1-2016, it was Rs 185.

     

     

    Cable Subscription, Connection and Channel carriage fees

     

    The company’s cable subscription fees in Q2-2016 increased 4 percent to Rs 20.6 crore as compared to the Rs 19.8 crore in Q2-2015 and increased 3 percent as compared to the Rs 20 crore in Q1-2016. Connection fees declined to Rs 0.70 crore in the current quarter from Rs 1.1 crore in Q2-2015 and remained flat as compared to the Rs 0.7 crore in Q1-2015.Channel carriage fees in the current quarter increased 44.9 percent to Rs 9.7 crore from Rs 6.7 crore in Q2-2015 and increased 23.8 percent from Rs 7.8 crore in the immediate trailing quarter.

     

    Let us look at the other numbers reported by Ortel

     

    Total Expenditure in Q2-2016 increased 13.3 percent to Rs 38.72 crore as compared to Rs 34.17 crore in Q2-2015 and increased 12.5 percent as compared to the Rs 34.42 crore in the immediate trailing quarter.

     

    The company’s Programming cost in the current quarter increased 7.2 percent to Rs 9.44 crore from Rs 8.81 crore in Q2-2015 and increased 5.9 percent from Rs 8.91 crore in Q1-2016.

     

    Bandwidth cost in Q2-2016 increased 19.3 percent to Rs 1.92 crore from Rs 1.61 crore in Q2-2015 and increased 7.9 percent from Rs 1.78 crore in Q1-2016.

     

    Employee Benefits Expense in the current quarter increased 45.5 percent to Rs 5.64 crore as compared to the Rs 3.88 crore in Q2-2015 and was 15.4 percent more than the Rs 4.89 crore in Q1-2016.

     

    Last quarter, Ortel announced that it had introduced free broadband option for all Ortel Cable TV subscribers in the states of Odisha, West Bengal and Chhattisgarh as a complimentary special value added service in order to target to deeper penetrate into markets by making internet affordable. Ortel says that its offer includes a free data limit every month for a year. The subscriber will be charged a nominal amount after exceeding the free data usage for the month.

  • Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    BENGALURU: The Mukesh Ambani led Reliance Industries Limited (RIL) organised retail segment – Reliance Retail, continued its growth momentum and profitability in the quarter ended 30 September, 2105 (Q2-2016, current quarter).

     

    RIL chairman and managing director Ambani said, “Reliance Retail achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing. In Digital Services, we have substantially completed the network roll-out across the country and initiated the process of beta testing of our network and platforms.”

     

    “We achieved record levels of EBITDA and profits for the quarter, underscoring our ability to optimally utilise our assets across the value chain to leverage favourable market conditions. Refining business performance was notable, as it benefited from a combination of high utilisation levels, advantageous crude market opportunities and strong global fuels demand. Petrochemicals segment performance reflects strong volume growth, product mix improvement and lower energy costs,” he said.

     

    “We maintained a rapid pace of construction activity during the quarter. The company’s world-scale petroleum coke gasification facility and ethylene cracker complex remains on track for its planned 2016 start-up,” added Ambani.

     

    Revenues for Q2-2016 grew by 22 per cent Yo-Y to Rs 5,091 crore from Rs 4,167 crore and 8.4 per cent QoQ from Rs 4698 crore. RIL says that all format sectors grew through store additions as well as like for like growth ranging up to 16 per cent. The business delivered PBDIT growth of 12.9 per cent at Rs 210 crore in Q2-2016 as against Rs 186 crore in the corresponding period of the previous year, and PBIT growth of 3.4 per cent from Rs 203 crore in Q1-2016.

     

    Further, Reliance Retail expanded its reach with a net addition of 110 stores during the quarter. As on 30 September, 2015, Reliance Retail operated 2,857 stores across over 250 cities in India.

     

    The company says that Reliance Retail 2.0 initiatives encompassing fashion and lifestyle e-commerce, development of market place platform and building distribution ecosystem for Reliance Jio devices are on track and gearing up for rollout in a staged manner.

     

    Reliance Retail would soon launch its own brand of 4G LTE smartphones under the brand LYF. The brand built on the premise of unmatched user experience will offer high performance handsets that deliver a true 4G experience comparable to the best in the world. LYF range of smartphones with features like Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-FI), HD Voice and HD quality video calling will enable users to experience a new digital life.

     

    LYF phones will reach consumers across the country through one of the widest distribution and retail network for smartphones. The devices will soon be available at multi-brand outlets (MBOs) and modern trade including Reliance Retail stores across India.

     

    RIL numbers

     

    For Q2-2016, RIL achieved a turnover of Rs 75,117 crore, a decrease of 33.8 per cent, as compared to Rs 113,396 crore in Q2-2015 and 9.6 per cent lower than the Rs 83064 crore in the immediate trailing quarter.

     

    However, RIL’s net profit after tax (PAT) increased 12.5 per cent in Q2-2016 to Rs 6720 crore as compared to the Rs 5972 crore in Q2-2015 and increased 8 per cent as compared to the Rs 6222 crore in the previous quarter.

     

    Sale of Network18 shares

     

    In July 2015, RIL sold 3.25 crore shares of Network18 Media & Investments Limited, (representing 3.10 per cent of the equity capital of NW18) to bring down the aggregate shareholding of the promoter and promoter group to 75 per cent and increase the public shareholding to 25 per cent as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957.

     

    Reliance Jio Infocomm Limited

     

    Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL, has substantially completed its network roll-out across the country. The network is currently being tested and optimised. Most of the business platforms have been rolled out and are being tested in a limited use environment. Large number of testers have been employed by the company across the country to facilitate extensive testing of network and business platforms.

     

    The company expects to ramp up its beta program over the next few weeks to further optimise the network, prior to commercial launch of operations. Financial year 2016-17 is projected to be the first year of commercial operations for RJIL.

     

    RJIL has launched Wi-Fi hot spots across several locations in the country and has entered into agreements with some of the State and Local Authorities to provide Wi-Fi services. RJIL has also started rolling out last-mile connectivity for its fibre-to-the-home (FTTH) business.

  • Hathway to demerge broadband business to subsidiary company

    Hathway to demerge broadband business to subsidiary company

    MUMBAI: Hathway Cable & Datacom is planning to demerge its broadband business into its wholly owned subsidiary Hathway Broadband Private Limited.

     

    The company’s board of directors have given in-principle approval to demerge, transfer and vest the company’s entire broadband business into its wholly owned subsidiary, subject to requisite approvals from the shareholders, creditors, High Court(s), Department of Telecommunications, Stock Exchanges, Securities and Exchange Board of India and other applicable regulatory governmental authorities.

     

    The carving out of the broadband business is aimed at accelerating value creation for Hathway shareholders. The separation will allow Hathway to aggressively focus on the significant growth potential for high speed data and related services in India. Globally, wireline or fixed broadband has emerged as a key driver of technology adoption and overall, GDP growth. India lags most countries including countries in Asia in wireline broadband penetration reaching only about eight per cent  of the potential universe.

     

    Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Narendra Modi’s Digital India initiative. The company believes that its hybrid fiber coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.

     

    Hathway Cable & Datacom MD & CEO Jagdish Kumar said, “We are uniquely placed to leverage our leading position in the cable television industry and our brand to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business. The separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to our subscribers.”