ITV

Category: Financials

  • FY-2016: Airtel DTH revenue up 18 percent; adds 16.5 lakh subscribers

    FY-2016: Airtel DTH revenue up 18 percent; adds 16.5 lakh subscribers

    BENGALURU: DAS phase III has been a boost for the carriage industry in subscriber additions, revenues, and operating profits, more so during the last two quarters of FY-2016. Buoyed by the government’s decision to stick to deadlines for digitisation, the DTH industry in India is continuing its bloom run, if one were to go by the results reported by Bharti Airtel Limited about its Digital TV services (Airtel DTH) for the quarter  and year ended 31 March 2016 (Q4-2016, current quarter, FY-2016, current year).

    Revenue in FY-2016 increased 17.8 per cent to Rs 2,917.8 crore as compared to Rs 2,475.9 crore in the previous year.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    Revenue in Q4-2016 increased 23.6 percent year-on-year (YoY) to Rs 784 crore as compared to Rs 634.2 crore and increased 5.6 per cent quarter-on quarter (QoQ) from Rs 742.2 crore.

    Airtel’s DTH segment reported EBIT (Earnings before interest and tax) of Rs 184.3 crore (6.3 per cent operating margin) as compared to a negative EBIT of Rs 158.1 crore in FY-2015.

    The segment’s EBIT for Q4-2016 grew almost 9 fold (8.9 times) YoY to Rs 72 crore (9.2 per cent EBIT or operating margin) from Rs 8.1 crore (1.3 per cent operating margin) and increased 33.8 per cent QoQ from Rs 53.8 crore (7.2 per cent operating margin).

    Subscription numbers

    Airtel DTH added 16.52 lakh (16.4 per cent YoY growth) net subscribers in FY-2016 to bring its subscriber base to 117.25 lakh from 100.73 lakh in the previous year. Average revenue per user (ARPU) increased to Rs 229 as compared to Rs 214 in the corresponding quarter last year. Airtel DTH reported a monthly subscriber churn of 0.8 per cent in Q4-2016 as compared to a churn of 1 per cent for the corresponding quarter of last year and a slightly lower 0.7 per cent for the immediate trailing quarter.

    Capex

    DAS III has resulted in Airtel’s increasing the capex for its DTH segment for FY-2016 by 40 per cent (Rs 313.8 crore) as compared to the previous year. The company’s capex spend in FY-2016 was Rs 1098 crore as compared to Rs 784.2 crore in FY-2015. The company’s cumulative investments into Airtel DTH increased 20 per cent to Rs 6,490.6 crore in the current year as compared to Rs 5,410.9 crore in the previous year.

    Bharti Airtel Limited numbers

    Airtel DTH contributes just about 4 per cent to Bharti Airtel’s Limited. Bharti Airtel reported total revenue of Rs 96,619.2 crore in FY-2016, 4.9 per cent more than the Rs 92,135 crore in FY-2015. Revenue in Q4-2016 grew 8.4 per cent YoY to Rs 24,983.1 crore as compared to Rs 24,013.4 crore  and grew 4 per cent QoQ as compared to Rs 23,039.8 in Q3-2016.

    The company reported a profit after tax (PAT) of Rs 5,484.2 crore (5.7 per cent margin) in the current year as compared to Rs 5,183.5 crore (5.6 per cent margin) in the previous year. PAT in Q4-2016 2.8 per cent YoY to Rs 1,290.3 crore (5.2 per cent margin) as compared to Rs 1255.3 crore (5.4 per cent margin) and grew 15.5 per cent QoQ as compared to Rs 1,116.9 crore (4.7 per cent margin).

  • FY-2016: Airtel DTH revenue up 18 percent; adds 16.5 lakh subscribers

    FY-2016: Airtel DTH revenue up 18 percent; adds 16.5 lakh subscribers

    BENGALURU: DAS phase III has been a boost for the carriage industry in subscriber additions, revenues, and operating profits, more so during the last two quarters of FY-2016. Buoyed by the government’s decision to stick to deadlines for digitisation, the DTH industry in India is continuing its bloom run, if one were to go by the results reported by Bharti Airtel Limited about its Digital TV services (Airtel DTH) for the quarter  and year ended 31 March 2016 (Q4-2016, current quarter, FY-2016, current year).

    Revenue in FY-2016 increased 17.8 per cent to Rs 2,917.8 crore as compared to Rs 2,475.9 crore in the previous year.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    Revenue in Q4-2016 increased 23.6 percent year-on-year (YoY) to Rs 784 crore as compared to Rs 634.2 crore and increased 5.6 per cent quarter-on quarter (QoQ) from Rs 742.2 crore.

    Airtel’s DTH segment reported EBIT (Earnings before interest and tax) of Rs 184.3 crore (6.3 per cent operating margin) as compared to a negative EBIT of Rs 158.1 crore in FY-2015.

    The segment’s EBIT for Q4-2016 grew almost 9 fold (8.9 times) YoY to Rs 72 crore (9.2 per cent EBIT or operating margin) from Rs 8.1 crore (1.3 per cent operating margin) and increased 33.8 per cent QoQ from Rs 53.8 crore (7.2 per cent operating margin).

    Subscription numbers

    Airtel DTH added 16.52 lakh (16.4 per cent YoY growth) net subscribers in FY-2016 to bring its subscriber base to 117.25 lakh from 100.73 lakh in the previous year. Average revenue per user (ARPU) increased to Rs 229 as compared to Rs 214 in the corresponding quarter last year. Airtel DTH reported a monthly subscriber churn of 0.8 per cent in Q4-2016 as compared to a churn of 1 per cent for the corresponding quarter of last year and a slightly lower 0.7 per cent for the immediate trailing quarter.

    Capex

    DAS III has resulted in Airtel’s increasing the capex for its DTH segment for FY-2016 by 40 per cent (Rs 313.8 crore) as compared to the previous year. The company’s capex spend in FY-2016 was Rs 1098 crore as compared to Rs 784.2 crore in FY-2015. The company’s cumulative investments into Airtel DTH increased 20 per cent to Rs 6,490.6 crore in the current year as compared to Rs 5,410.9 crore in the previous year.

    Bharti Airtel Limited numbers

    Airtel DTH contributes just about 4 per cent to Bharti Airtel’s Limited. Bharti Airtel reported total revenue of Rs 96,619.2 crore in FY-2016, 4.9 per cent more than the Rs 92,135 crore in FY-2015. Revenue in Q4-2016 grew 8.4 per cent YoY to Rs 24,983.1 crore as compared to Rs 24,013.4 crore  and grew 4 per cent QoQ as compared to Rs 23,039.8 in Q3-2016.

    The company reported a profit after tax (PAT) of Rs 5,484.2 crore (5.7 per cent margin) in the current year as compared to Rs 5,183.5 crore (5.6 per cent margin) in the previous year. PAT in Q4-2016 2.8 per cent YoY to Rs 1,290.3 crore (5.2 per cent margin) as compared to Rs 1255.3 crore (5.4 per cent margin) and grew 15.5 per cent QoQ as compared to Rs 1,116.9 crore (4.7 per cent margin).

  • ACT leads in wired broadband subscriber additions in 2016

    ACT leads in wired broadband subscriber additions in 2016

    BENGALURU: Atria Convergence Technologies Private Limited (ACT, ACT Broadband) lead in net wired broadband subscriber additions in calendar year 2016 with 50,000 subscribers added during the first two months of calendar year 2016 (CY-2016). As per data released by the Telecom Regulatory Authority of India (TRAI), ACT’s broadband subscriber base as on 29 February 2016 (Feb-16) was 9.1 lakh as compared to the 8.6 lakh subscribers as on 31 December 2015 (Dec-15).

    Until 30 October 2015 (Oct-15), ACT Broadband was leading in wireline broadband internet subscriber additions in India during calendar year 2015. Both ACT and Bharti Airtel had added 230,000 subscribers in CY-2015 until Nov-15. In December 2015 numbers released by TRAI indicated that as on 31 December 2015 (Dec-15), Bharti Airtel had added 2.6 lakh subscribers (subject to a granularity of 10,000) as compared to the 2.5 lakh subscribers added by ACT in the period between 31 December 2014 (hence 1 January 2015, Dec-14) and Dec-15. In terms of wireline internet subscription numbers, Airtel had 16.7 lakh subscribers while ACT had 8.6 lakh subscribers at the end of CY-2015.

    As per TRAI data, the top five players in India in the wireline broadband internet space in pecking order are the public sector Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel Limited (Airtel), public sector Mahanagar Telephone Nigam Limited (MTNL), Atria Convergence Technologies Private Limited (ACT, ACT Broadband) and You Broadband (You BB). Among these 5, only BSNL and Airtel could be termed national players at present. BSNL, Airtel and MTNL also provide wireline and mobile services while Airtel also has a direct to home (DTH) segment. ACT started off as an MSO with operations concentrated in a few major cities and towns located mainly in South India. It started internet services (ACT Broadband) a little later and has grown its broadband internet subscriber base over time, to the extent that it is quite likely the biggest private wireline broadband player in South India. You BB offers broadband operations in a few cities in Maharashtra, Gujarat the NCR region Andhra Pradesh and Karnataka.

    While the public sector players BSNL and MTNL have been losing subscribers and/or market share, the three private players have been growing on both these parameters as Fig 1 below indicates. In CY-2016, until Feb-16, both BSNL and MTNL have lost 10,000 wired broadband subscribers each, while You BB has added 10,000 subscribers. BSNL’s wired broadband subscriber base as on 29 February 2016 was 99.1 lakh, while MTNL had 11.1 lakh subscribers. You BB had 5.2 lakh subscribers for Feb-15.

    Note: (1) 100,00,000 = 100 Lakh = 10 million = 1 crore

    (2) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.47 million (4.7 lakh) subscribers for You BB for July-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

    (3) Industry sources say that TRAI numbers in the case of ACT for May-2015 are incorrect at 0.66 million and the correct number would be 0.693 million. This paper considers the number as 6.93 lakh or 0.693 million.

    (4) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

    At the same time, the subscriber numbers share of the top five wired broadband players in the country has reduced from 88.45 percent from Dec-14 to 84.54 percent as on Feb-16. During the same period the all India wireline internet subscriber base has grown 9.33 per cent from 153.2 lakh to 167.5 lakh. The combined numbers of the top five players have increased by less than half of that in percentage terms – by 4.5 per cent from 136.3 lakh to 141.6 lakh. The top five players have added 5.3 lakh subscribers during these 14 months, with ACT and Bharti Airtel contributing to the major bulk of the growth. Please refer to Fig 2 below.

    MSOs’ in India have started providing internet services on the back of their cable networks using Docsis technology. In general, they have started reporting double digit YoY increase in internet subscribers and revenue.  Three of the major MSOs and a regional MSO – Hathway, Siti Cable, Den Networks, Ortel Communications whose results are available in the public domain for the quarter ended 31 December 2016 (Q3-2016 current quarter) have been showing steady growth in their broadband segment over the past few quarters. 

  • ACT leads in wired broadband subscriber additions in 2016

    ACT leads in wired broadband subscriber additions in 2016

    BENGALURU: Atria Convergence Technologies Private Limited (ACT, ACT Broadband) lead in net wired broadband subscriber additions in calendar year 2016 with 50,000 subscribers added during the first two months of calendar year 2016 (CY-2016). As per data released by the Telecom Regulatory Authority of India (TRAI), ACT’s broadband subscriber base as on 29 February 2016 (Feb-16) was 9.1 lakh as compared to the 8.6 lakh subscribers as on 31 December 2015 (Dec-15).

    Until 30 October 2015 (Oct-15), ACT Broadband was leading in wireline broadband internet subscriber additions in India during calendar year 2015. Both ACT and Bharti Airtel had added 230,000 subscribers in CY-2015 until Nov-15. In December 2015 numbers released by TRAI indicated that as on 31 December 2015 (Dec-15), Bharti Airtel had added 2.6 lakh subscribers (subject to a granularity of 10,000) as compared to the 2.5 lakh subscribers added by ACT in the period between 31 December 2014 (hence 1 January 2015, Dec-14) and Dec-15. In terms of wireline internet subscription numbers, Airtel had 16.7 lakh subscribers while ACT had 8.6 lakh subscribers at the end of CY-2015.

    As per TRAI data, the top five players in India in the wireline broadband internet space in pecking order are the public sector Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel Limited (Airtel), public sector Mahanagar Telephone Nigam Limited (MTNL), Atria Convergence Technologies Private Limited (ACT, ACT Broadband) and You Broadband (You BB). Among these 5, only BSNL and Airtel could be termed national players at present. BSNL, Airtel and MTNL also provide wireline and mobile services while Airtel also has a direct to home (DTH) segment. ACT started off as an MSO with operations concentrated in a few major cities and towns located mainly in South India. It started internet services (ACT Broadband) a little later and has grown its broadband internet subscriber base over time, to the extent that it is quite likely the biggest private wireline broadband player in South India. You BB offers broadband operations in a few cities in Maharashtra, Gujarat the NCR region Andhra Pradesh and Karnataka.

    While the public sector players BSNL and MTNL have been losing subscribers and/or market share, the three private players have been growing on both these parameters as Fig 1 below indicates. In CY-2016, until Feb-16, both BSNL and MTNL have lost 10,000 wired broadband subscribers each, while You BB has added 10,000 subscribers. BSNL’s wired broadband subscriber base as on 29 February 2016 was 99.1 lakh, while MTNL had 11.1 lakh subscribers. You BB had 5.2 lakh subscribers for Feb-15.

    Note: (1) 100,00,000 = 100 Lakh = 10 million = 1 crore

    (2) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.47 million (4.7 lakh) subscribers for You BB for July-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

    (3) Industry sources say that TRAI numbers in the case of ACT for May-2015 are incorrect at 0.66 million and the correct number would be 0.693 million. This paper considers the number as 6.93 lakh or 0.693 million.

    (4) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

    At the same time, the subscriber numbers share of the top five wired broadband players in the country has reduced from 88.45 percent from Dec-14 to 84.54 percent as on Feb-16. During the same period the all India wireline internet subscriber base has grown 9.33 per cent from 153.2 lakh to 167.5 lakh. The combined numbers of the top five players have increased by less than half of that in percentage terms – by 4.5 per cent from 136.3 lakh to 141.6 lakh. The top five players have added 5.3 lakh subscribers during these 14 months, with ACT and Bharti Airtel contributing to the major bulk of the growth. Please refer to Fig 2 below.

    MSOs’ in India have started providing internet services on the back of their cable networks using Docsis technology. In general, they have started reporting double digit YoY increase in internet subscribers and revenue.  Three of the major MSOs and a regional MSO – Hathway, Siti Cable, Den Networks, Ortel Communications whose results are available in the public domain for the quarter ended 31 December 2016 (Q3-2016 current quarter) have been showing steady growth in their broadband segment over the past few quarters. 

  • Q1-2016: Verizon reports growth in video subscribers, Fios revenue up 5 per cent

    Q1-2016: Verizon reports growth in video subscribers, Fios revenue up 5 per cent

    BENGALURU: Verizon Communications Inc., (Verizon) added 98,000 net new Fios internet connections and 36,000 net new Fios video connections in the first-quarter of 2016 (quarter ended 31 March 2016, Q1-2016, current quarter) as compared the 133,000 net new and 90,000 net new respective adds duringQ1-2015. Year-on-year (YoY), video subscribers grew 2.2 per cent to 5.863 million in Q1-2016 as compared to 5.739 million in Q4-2015.

    Fios digital voice connections in the current quarter increased to 4.800 million as compared to 4.661 million in Q1-2015. Total Fios digital connections increased in Q1-2016 to 17.795 million as compared to 17.194 million in the corresponding year ago quarter.

    Verizon’s operations are divided into four business units: wireless services, residential and small business services, enterprise services, and partner programs. Consumer retail, small businesses, mass markets, global enterprise, global wholesale and other are a part of wireline services. Under consumer retail, residential services are a part of wireline services under the brand Fios.

    Total Fios revenues grew 5.0 percent YoY to $3,521 million, compared to $3,352 million in Q1-2015., including consumer Fios revenue growth of 4.7 percent. In Q1-2016, consumer revenues were $4,022 million, an increase of 0.8 percent compared with $3,992 million in Q1-2015.

    Wireline segment operating income was $589 million (6.3 percent margin) for Q1-2016 as compared to $405 million (4.3 per cent margin). In Q1-2016, wireline generated $2,177 million (23.4 per cent margin) in EBITDA, a YoY increase of 1.2 percent over $2,151 million (22.7 per cent margin) in Q1-2015.

    The company says that by the end of first-quarter 2016, about 78 per cent of consumer Fios internet customers subscribed to data speeds of 50 megabits per second or higher. Customer demand remained strong for Custom TV, which represented about 38 per cent of Fios video sales in the quarter.                

    Verizon informs that during the first quarter, Verizon Enterprise Solutions entered into new agreements with or began servicing a number of clients, including 1-800-Flowers, the Commonwealth of Virginia, Dana Holding Corporation, the Florida Sheriffs Association, Promeditec, PSE&G, South Australia Health & Medical Research Institute, and Wyndham Worldwide.

    In the wireline segment, Fios fiber-optic-based services remain the driver of revenue growth and now represent about 81 percent of consumer revenues.

    Verizon consolidated numbers

    Verizon’s total operating revenues in Q1-2016 were $32,171 million, a 0.6 percent YoY increase compared with $31,884 million in Q1-2015. Excluding AOL, which was not part of Verizon a year ago, total operating revenues declined 1.5 percent. AOL had its highest first-quarter revenues at $669 million in the last five years says Verizon      

    The company says that new revenue streams from IoT (Internet of Things) are growing, with revenues of approximately $195 million in Q1-2016, a year-over-year increase of about 25 percent.     

    Verizon’s operating income in Q1-2016 at $7,942 million (24.7 per cent margin) was 0.2 per cent lower YoY as compared to $7,960million (24.9 percent margin). Net Income attributable to Verizon in Q1-2016 totalled $4,310 million (13.4 per cent margin), which was 2.1 per cent more than $4,219 million (13.2 per cent margin) in the corresponding quarter of the previous year.

    Company speak

    “Verizon’s strong first-quarter results demonstrate our capacity to compete effectively, while executing on our plan of continued network leadership and seeding new growth markets in mobile video and the Internet of Things,” said Verizon chairman and CEO Lowell McAdam.

  • Q1-2016: Verizon reports growth in video subscribers, Fios revenue up 5 per cent

    Q1-2016: Verizon reports growth in video subscribers, Fios revenue up 5 per cent

    BENGALURU: Verizon Communications Inc., (Verizon) added 98,000 net new Fios internet connections and 36,000 net new Fios video connections in the first-quarter of 2016 (quarter ended 31 March 2016, Q1-2016, current quarter) as compared the 133,000 net new and 90,000 net new respective adds duringQ1-2015. Year-on-year (YoY), video subscribers grew 2.2 per cent to 5.863 million in Q1-2016 as compared to 5.739 million in Q4-2015.

    Fios digital voice connections in the current quarter increased to 4.800 million as compared to 4.661 million in Q1-2015. Total Fios digital connections increased in Q1-2016 to 17.795 million as compared to 17.194 million in the corresponding year ago quarter.

    Verizon’s operations are divided into four business units: wireless services, residential and small business services, enterprise services, and partner programs. Consumer retail, small businesses, mass markets, global enterprise, global wholesale and other are a part of wireline services. Under consumer retail, residential services are a part of wireline services under the brand Fios.

    Total Fios revenues grew 5.0 percent YoY to $3,521 million, compared to $3,352 million in Q1-2015., including consumer Fios revenue growth of 4.7 percent. In Q1-2016, consumer revenues were $4,022 million, an increase of 0.8 percent compared with $3,992 million in Q1-2015.

    Wireline segment operating income was $589 million (6.3 percent margin) for Q1-2016 as compared to $405 million (4.3 per cent margin). In Q1-2016, wireline generated $2,177 million (23.4 per cent margin) in EBITDA, a YoY increase of 1.2 percent over $2,151 million (22.7 per cent margin) in Q1-2015.

    The company says that by the end of first-quarter 2016, about 78 per cent of consumer Fios internet customers subscribed to data speeds of 50 megabits per second or higher. Customer demand remained strong for Custom TV, which represented about 38 per cent of Fios video sales in the quarter.                

    Verizon informs that during the first quarter, Verizon Enterprise Solutions entered into new agreements with or began servicing a number of clients, including 1-800-Flowers, the Commonwealth of Virginia, Dana Holding Corporation, the Florida Sheriffs Association, Promeditec, PSE&G, South Australia Health & Medical Research Institute, and Wyndham Worldwide.

    In the wireline segment, Fios fiber-optic-based services remain the driver of revenue growth and now represent about 81 percent of consumer revenues.

    Verizon consolidated numbers

    Verizon’s total operating revenues in Q1-2016 were $32,171 million, a 0.6 percent YoY increase compared with $31,884 million in Q1-2015. Excluding AOL, which was not part of Verizon a year ago, total operating revenues declined 1.5 percent. AOL had its highest first-quarter revenues at $669 million in the last five years says Verizon      

    The company says that new revenue streams from IoT (Internet of Things) are growing, with revenues of approximately $195 million in Q1-2016, a year-over-year increase of about 25 percent.     

    Verizon’s operating income in Q1-2016 at $7,942 million (24.7 per cent margin) was 0.2 per cent lower YoY as compared to $7,960million (24.9 percent margin). Net Income attributable to Verizon in Q1-2016 totalled $4,310 million (13.4 per cent margin), which was 2.1 per cent more than $4,219 million (13.2 per cent margin) in the corresponding quarter of the previous year.

    Company speak

    “Verizon’s strong first-quarter results demonstrate our capacity to compete effectively, while executing on our plan of continued network leadership and seeding new growth markets in mobile video and the Internet of Things,” said Verizon chairman and CEO Lowell McAdam.

  • FY-2016: Reliance Retail revenue grows 23%

    BENGALURU: The Mukesh D Ambani led Reliance Industries Limited (RIL) organized retail segment – Reliance Retail,  continued its growth momentum and profitability in the quarter and financial year ended 31 March 2106 (Q4-2016, current quarter, FY-2016, current year)

    Reliance chairman and managing director, Mukesh D. Ambani said, “Reliance Retail continued its path of profitable expansion while maintaining a robust revenue growth of 23 per cent during the year. Looking ahead, we are focused on ensuring a flawless start- up and stabilization of the new growth platforms across our hydrocarbon and consumer businesses. The commercial roll-out of our Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance.”

    Reliance Retail added 624 stores across various store concepts translating into a store opening rate of 12 stores per week denoting the accelerated store opening program which the business has implemented during the year. As on 31st March 2016, Reliance Retail operated 3,245 stores across 532 cities.

    RIL’s organized retail segment reported 22.5 percent growth in revenue at Rs 21,612 crore in FY-2016 as compared to Rs 17,640 crore in FY-2015. The segment reported 21.3 per cent growth in operating result at Rs 508 crore as compared to Rs 417 crore in the previous year. 

    In Q4-2016, the segment reported 20.7 per cent  year-on-year (YoY) growth in revenue at Rs 5,781 crore as compared to Rs 4,788 crore, but a 4.2 per cent quarter-on-quarter (QoQ) decline as compared to Rs 6,042 crore in Q3-2016. The segment operating profit for the current quarter at Rs 131 crore was 26 per cent higher YoY than the Rs104 crore, but 10.9 per cent lower QoQ as compared to Rs147 crore.

    RIL numbers

    RIL achieved a consolidated turnover of Rs 296,091 crore for FY-2016, a decrease of 23.8 per cent, as compared to Rs 388,494 crore in the previous year. The company says that the decline in turnover reflects sharp fall in feedstock and product prices during the year, partially offset by record crude throughput and higher petrochemicals volumes. Profit after tax was higher by 17.2 per cent at Rs 27,630 crore (9.3 per cent margin) as against Rs 23,566 crore (6.1 per cent margin) in the previous year.

    For Q4-2016, RIL achieved a turnover of Rs 64,569 crore, a decrease of 8.9 per cent, as compared to Rs 70,863 crore in the corresponding period of the previous year. Profit after tax including exceptional items was higher by 15.9 per cent at Rs 7,398 crore (11.5 per cent margin) as against Rs 6,381 crore (9 per cent margin) in the corresponding period of the previous year.

    Reliance Jio updates for Q4-2016

    RJIL successfully launched full scale service offerings for the RIL group employees, partners, vendors and associates on a trial basis on 28 December 2015. The company says that over half a million users have been onboarded on the network. The initial feedback is very encouraging and has established smooth operations of all aspects of the network. All the digital applications have also been tested extensively as part of the employee launch program. The average monthly consumption per user is in excess of 18GB within the first month of service and is increasing rapidly. Average voice usage is

    over 250 minutes within the first month. The launch is now being expanded to others in the ecosystem. This test program will be progressively upgraded into commercial operations in coming months.

    RJIL is also creating a multi-terabit capacity international network. RJIL recently announced the launch of a new, state-of-the-art 8,100 km cable system, the Bay of Bengal Gateway (BBG). BBG provides direct connectivity to South East Asia and the Middle East, then onward to Europe, Africa and Far East Asia through seamless interconnection with existing cable systems. RJIL owns and operates the strategically important undersea cable landing facility in Chennai, providing a highspeed, high-capacity, low latency route connecting India to the rest of the world. During the quarter, RJIL has issued and allotted 1,500 crore equity shares of Rs 10 each, at par, to Reliance Industries Limited, its holding company.

    In January 2016, Reliance Jio Infocomm Ltd (RJIL) and Reliance Communications Limited (RCOM) signed agreements for Change in Spectrum Allotment in 800 MHz band across 9 Circles from RCOM to RJIL and for sharing of spectrum in 800 MHz band across 17 Circles. As part of the strategic collaboration, both companies also intend to enter into reciprocal Intra Circle Roaming (ICR) arrangements.

  • FY-2016: Reliance Retail revenue grows 23%

    BENGALURU: The Mukesh D Ambani led Reliance Industries Limited (RIL) organized retail segment – Reliance Retail,  continued its growth momentum and profitability in the quarter and financial year ended 31 March 2106 (Q4-2016, current quarter, FY-2016, current year)

    Reliance chairman and managing director, Mukesh D. Ambani said, “Reliance Retail continued its path of profitable expansion while maintaining a robust revenue growth of 23 per cent during the year. Looking ahead, we are focused on ensuring a flawless start- up and stabilization of the new growth platforms across our hydrocarbon and consumer businesses. The commercial roll-out of our Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance.”

    Reliance Retail added 624 stores across various store concepts translating into a store opening rate of 12 stores per week denoting the accelerated store opening program which the business has implemented during the year. As on 31st March 2016, Reliance Retail operated 3,245 stores across 532 cities.

    RIL’s organized retail segment reported 22.5 percent growth in revenue at Rs 21,612 crore in FY-2016 as compared to Rs 17,640 crore in FY-2015. The segment reported 21.3 per cent growth in operating result at Rs 508 crore as compared to Rs 417 crore in the previous year. 

    In Q4-2016, the segment reported 20.7 per cent  year-on-year (YoY) growth in revenue at Rs 5,781 crore as compared to Rs 4,788 crore, but a 4.2 per cent quarter-on-quarter (QoQ) decline as compared to Rs 6,042 crore in Q3-2016. The segment operating profit for the current quarter at Rs 131 crore was 26 per cent higher YoY than the Rs104 crore, but 10.9 per cent lower QoQ as compared to Rs147 crore.

    RIL numbers

    RIL achieved a consolidated turnover of Rs 296,091 crore for FY-2016, a decrease of 23.8 per cent, as compared to Rs 388,494 crore in the previous year. The company says that the decline in turnover reflects sharp fall in feedstock and product prices during the year, partially offset by record crude throughput and higher petrochemicals volumes. Profit after tax was higher by 17.2 per cent at Rs 27,630 crore (9.3 per cent margin) as against Rs 23,566 crore (6.1 per cent margin) in the previous year.

    For Q4-2016, RIL achieved a turnover of Rs 64,569 crore, a decrease of 8.9 per cent, as compared to Rs 70,863 crore in the corresponding period of the previous year. Profit after tax including exceptional items was higher by 15.9 per cent at Rs 7,398 crore (11.5 per cent margin) as against Rs 6,381 crore (9 per cent margin) in the corresponding period of the previous year.

    Reliance Jio updates for Q4-2016

    RJIL successfully launched full scale service offerings for the RIL group employees, partners, vendors and associates on a trial basis on 28 December 2015. The company says that over half a million users have been onboarded on the network. The initial feedback is very encouraging and has established smooth operations of all aspects of the network. All the digital applications have also been tested extensively as part of the employee launch program. The average monthly consumption per user is in excess of 18GB within the first month of service and is increasing rapidly. Average voice usage is

    over 250 minutes within the first month. The launch is now being expanded to others in the ecosystem. This test program will be progressively upgraded into commercial operations in coming months.

    RJIL is also creating a multi-terabit capacity international network. RJIL recently announced the launch of a new, state-of-the-art 8,100 km cable system, the Bay of Bengal Gateway (BBG). BBG provides direct connectivity to South East Asia and the Middle East, then onward to Europe, Africa and Far East Asia through seamless interconnection with existing cable systems. RJIL owns and operates the strategically important undersea cable landing facility in Chennai, providing a highspeed, high-capacity, low latency route connecting India to the rest of the world. During the quarter, RJIL has issued and allotted 1,500 crore equity shares of Rs 10 each, at par, to Reliance Industries Limited, its holding company.

    In January 2016, Reliance Jio Infocomm Ltd (RJIL) and Reliance Communications Limited (RCOM) signed agreements for Change in Spectrum Allotment in 800 MHz band across 9 Circles from RCOM to RJIL and for sharing of spectrum in 800 MHz band across 17 Circles. As part of the strategic collaboration, both companies also intend to enter into reciprocal Intra Circle Roaming (ICR) arrangements.

  • Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    BENGALURU:  US Pay-TV player Dish Network Corporation (DNC) reported 1.7 percent higher  year-on-year (YoY) total revenue for the quarter ended 31 March, 2016 (Q1-2016, current) at $3,787.24 million as compared to $3,724.23 million in the year ago quarter. Subscriber related revenue increased 2.2 per cent YoY to $3,775.48 million in the current quarter as compared to $3,693.53 million in Q1-2015. The company lost 139,000 Pay-TV subscribers. Its subscriber base in the current year declined 1 per cent to 13.874 million in the current year as compared to 14.013 million in Q1-2015.

    The company reported 2.6 per cent growth in average revenue per user (ARPU) in Q1-2016 to $87.94 from $85.73 in the corresponding year ago quarter. DNC says that increase in Pay-TV ARPU was primarily attributable to the DISH branded Pay-TV programming package price increases in February 2016 and 2015. These increases were partially offset by a shift in DISH branded Pay-TV programming package mix, an increase in Sling TV subscribers and a decrease in premium and pay-per-view revenue.  The company says that Sling TV subscribers generally have lower priced programming packages than DISH branded Pay-TV subscribers, and therefore, to the extent  that Sling TV subscribers increase, it has a negative impact on Pay-TV ARPU.

    DNC’s subscriber churn declined by a single basis point to 1.63 per cent in the current quarter as compared to 1.64 per cent in Q1-2015. DNC added 657,000 gross subscribers in Q1-2016 as compared to 723,000 subscribers in Q1-2015. The company says that its Pay-TV churn rate continued to be adversely affected by   increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting.

    DNC reported lower subscriber acquisition costs in the current quarter at $648 per subscriber as compared to $667, or a drop of 2.9 per cent or $19 per subscriber. DNC says that this change was primarily attributable to a   decrease in hardware costs per activation. The decrease in hardware costs per activation was driven by a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems

    DNC reported 628,000 broadband subscribers in Q1-2016 as compared to 591,000 subscribers in Q1-2015

    Net income attributable to DNC increased 10.8 per cent to $389.29 million in the current quarter as compared to $351.49 million in Q1-2015.

  • Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    BENGALURU:  US Pay-TV player Dish Network Corporation (DNC) reported 1.7 percent higher  year-on-year (YoY) total revenue for the quarter ended 31 March, 2016 (Q1-2016, current) at $3,787.24 million as compared to $3,724.23 million in the year ago quarter. Subscriber related revenue increased 2.2 per cent YoY to $3,775.48 million in the current quarter as compared to $3,693.53 million in Q1-2015. The company lost 139,000 Pay-TV subscribers. Its subscriber base in the current year declined 1 per cent to 13.874 million in the current year as compared to 14.013 million in Q1-2015.

    The company reported 2.6 per cent growth in average revenue per user (ARPU) in Q1-2016 to $87.94 from $85.73 in the corresponding year ago quarter. DNC says that increase in Pay-TV ARPU was primarily attributable to the DISH branded Pay-TV programming package price increases in February 2016 and 2015. These increases were partially offset by a shift in DISH branded Pay-TV programming package mix, an increase in Sling TV subscribers and a decrease in premium and pay-per-view revenue.  The company says that Sling TV subscribers generally have lower priced programming packages than DISH branded Pay-TV subscribers, and therefore, to the extent  that Sling TV subscribers increase, it has a negative impact on Pay-TV ARPU.

    DNC’s subscriber churn declined by a single basis point to 1.63 per cent in the current quarter as compared to 1.64 per cent in Q1-2015. DNC added 657,000 gross subscribers in Q1-2016 as compared to 723,000 subscribers in Q1-2015. The company says that its Pay-TV churn rate continued to be adversely affected by   increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting.

    DNC reported lower subscriber acquisition costs in the current quarter at $648 per subscriber as compared to $667, or a drop of 2.9 per cent or $19 per subscriber. DNC says that this change was primarily attributable to a   decrease in hardware costs per activation. The decrease in hardware costs per activation was driven by a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems

    DNC reported 628,000 broadband subscribers in Q1-2016 as compared to 591,000 subscribers in Q1-2015

    Net income attributable to DNC increased 10.8 per cent to $389.29 million in the current quarter as compared to $351.49 million in Q1-2015.