Tag: cable TV

Cable TV distribution to get fillip from demonetisation

MUMBAI: The cable television distribution business, a section of which has been infamous for dealings in unaccounted money, will have to upgrade addressability in the backdrop of the decision to demonetise higher value currency. It is estimated that the analog subscriber base will come down by 37% this year as they switch over to digital cable under DAS III and IV, according to sector estimates.

According to a FICCI-KPMG report, there are approximately 65 million analog cable television subscribers in India, around 37 million digital cable television subscribers, 44 million pay DTH (direct-to-home) subscribers and some 15 million free DTH (FTA) subscribers. The benefit of dealing in cash prompts most operators to under-report subscriber numbers and eventually revenue. However, this may substantially reduce with the new government move, experts said.

KPMG partner – media & entertainment Jehil Thakkar said that, with digitisation (under DAS III and IV), TRAI has proposed new pricing for TV channels. The purpose was to make it affordable. With demonetisation, the cable operators may have to clean up their operations so that there was transparency in dealings with broadcasters.

DAS could act as a catalyst for cable operators to reduce under-reporting. Demonetisation, experts said, could become a trigger for the switchover. Under-reporting of subscription revenue by the cable operator per individual or household had been estimated to be 15-20%. DTH, however, has overcome this issue by using a pricing strategy based on the number of channels seen by a consumer.

Meanwhile, the release of a number of Telugu films including Intlo Deyyam – Nakem Bhayam and Ram Charan Teja’s Dhruva have been postponed. Box office earnings have gone substantially down for Tamil, Telugu, and Malayalam films owing to demonetisation. Producers are being forced to defer releases due to low turnouts.

Several film shoots have been suspended, and many theatres in Kerala are planning to shut shop owing to non-availability of low denomination notes. Work on national award-winning director Sidharth Siva’s new movie Sakavu too has been deferred.

Income Tax officials meanwhile raided the house of the campaign manager of Puducherry chief minister V Narayanasamy and ex-MLA A John Kumar, seizing Rs. 14 lakh in cash. The ex-MLA of Nellithope, whose business is cable TV distribution, real estate etc, is also the manager of Narayanasamy’s campaign.

November 18, 2016
Cable TV distribution to get fillip from demonetisation

MUMBAI: The cable television distribution business, a section of which has been infamous for dealings in unaccounted money, will have to upgrade addressability in the backdrop of the decision to demonetise higher value currency. It is estimated that the analog subscriber base will come down by 37% this year as they switch over to digital cable under DAS III and IV, according to sector estimates.

According to a FICCI-KPMG report, there are approximately 65 million analog cable television subscribers in India, around 37 million digital cable television subscribers, 44 million pay DTH (direct-to-home) subscribers and some 15 million free DTH (FTA) subscribers. The benefit of dealing in cash prompts most operators to under-report subscriber numbers and eventually revenue. However, this may substantially reduce with the new government move, experts said.

KPMG partner – media & entertainment Jehil Thakkar said that, with digitisation (under DAS III and IV), TRAI has proposed new pricing for TV channels. The purpose was to make it affordable. With demonetisation, the cable operators may have to clean up their operations so that there was transparency in dealings with broadcasters.

DAS could act as a catalyst for cable operators to reduce under-reporting. Demonetisation, experts said, could become a trigger for the switchover. Under-reporting of subscription revenue by the cable operator per individual or household had been estimated to be 15-20%. DTH, however, has overcome this issue by using a pricing strategy based on the number of channels seen by a consumer.

Meanwhile, the release of a number of Telugu films including Intlo Deyyam – Nakem Bhayam and Ram Charan Teja’s Dhruva have been postponed. Box office earnings have gone substantially down for Tamil, Telugu, and Malayalam films owing to demonetisation. Producers are being forced to defer releases due to low turnouts.

Several film shoots have been suspended, and many theatres in Kerala are planning to shut shop owing to non-availability of low denomination notes. Work on national award-winning director Sidharth Siva’s new movie Sakavu too has been deferred.

Income Tax officials meanwhile raided the house of the campaign manager of Puducherry chief minister V Narayanasamy and ex-MLA A John Kumar, seizing Rs. 14 lakh in cash. The ex-MLA of Nellithope, whose business is cable TV distribution, real estate etc, is also the manager of Narayanasamy’s campaign.

November 18, 2016
DEN divests further 25 per cent from Delhi Dynamos

MUMBAI: Indian cable TV major DEN Networks is increasingly getting itself out of the sports den it had gotten itself into earlier. Today, the Sameer Manchanda-promoted SN Sharma-run Goldman Sachs-backed multisystem operator (MSO) informed the BSE that it had divested another 25 per cent equity from its sports initiative DEN Sports in favour of Wall Street Investments.

The latter represents the business interests of the UAE-based entrepreneur Dr Anil Sharma-run GMS group. GMS is a world major buyer of ships for recycling.

The price at which the equity stake has been transferred was not disclosed to the stock exchange, but Wall Street Investments holding in DEN Sports has gone up to 80 per cent equity while DEN Network’s has fallen to 20 per cent. DEN Sports controls 100 per cent of DEN Soccer which manages the Indian Soccer League Delhi-franchise owning Delhi Dynamos F.C.

Wall Street Investments, on its part, has received Registrar of Companies permission to change the name of the two firms to Delhi Sports and Delhi Soccer. And DEN Networks also gave the name change the go-ahead following a board meeting.

Earlier this year, DEN Networks had lopped off 55 per cent of its stake in DEN Sports to Wall Street Investments at a price of Rs 43.32 crore.

The cable TV firm has been under pressure from its investors to get back to business basics and monetise better the cable TV digitisation process that India has been going through over the past three years. It rehired co-founder SN Sharma from Reliance Jio as the CEO to get its house in order.

November 17, 2016
DEN divests further 25 per cent from Delhi Dynamos

MUMBAI: Indian cable TV major DEN Networks is increasingly getting itself out of the sports den it had gotten itself into earlier. Today, the Sameer Manchanda-promoted SN Sharma-run Goldman Sachs-backed multisystem operator (MSO) informed the BSE that it had divested another 25 per cent equity from its sports initiative DEN Sports in favour of Wall Street Investments.

The latter represents the business interests of the UAE-based entrepreneur Dr Anil Sharma-run GMS group. GMS is a world major buyer of ships for recycling.

The price at which the equity stake has been transferred was not disclosed to the stock exchange, but Wall Street Investments holding in DEN Sports has gone up to 80 per cent equity while DEN Network’s has fallen to 20 per cent. DEN Sports controls 100 per cent of DEN Soccer which manages the Indian Soccer League Delhi-franchise owning Delhi Dynamos F.C.

Wall Street Investments, on its part, has received Registrar of Companies permission to change the name of the two firms to Delhi Sports and Delhi Soccer. And DEN Networks also gave the name change the go-ahead following a board meeting.

Earlier this year, DEN Networks had lopped off 55 per cent of its stake in DEN Sports to Wall Street Investments at a price of Rs 43.32 crore.

The cable TV firm has been under pressure from its investors to get back to business basics and monetise better the cable TV digitisation process that India has been going through over the past three years. It rehired co-founder SN Sharma from Reliance Jio as the CEO to get its house in order.

November 17, 2016
Cancel DTH licence auction, cable operators urge PEMRA

MUMBAI: Pakistan Electronic Media Regularity Authority (PEMRA) has been urged to cancel the auction of Direct-to-Home (DTH) licence and postpone launch of the services for three years. PEMRA was scheduled to auction DTH license on 23 November, adding that this decision would affect several thousand cable operators across Pakistan.

Peshawar chapter cable operators of Khyber Pakhtunkhwa in Pakistan have urged Pemra to cancel the auction and postpone the launch.

The Cable Operators Association of Pakistan (COAP) Peshawar chapter also sought take strict action against those providing non-permitted services of operating Indian TV and C-Line across Peshawar. They also sought removal of Indian television channels from all broadcast sources.

Around 14,000 operators having legal cable license were operating cable system across the country, of which 200 had been operating in Khyber-Pakhtunkhwa. In Peshawar alone, around 45 operators are delivering cable services.

Cable Operators Federation of Pakistan coordinator Ali Raza Khan said that they would raise their voice at every forum and would stage protests. Khan said that PEMRA was soon scheduled to auction DTH license.

Khan told journalists at a conference that the cable operators had put in billions in the digital system on the orders of PEMRA but neither the DTH nor the digital policy was clear to the operators since 2000.

Cable TV in Pakistan was earlier operated on the analogue system but later switched to digital cable system for which operators invested huge sums. Khan complained against authorities who were planning to launch DTH system.

PEMRA, Khan said, had received billions as taxes from the operators,. COAP expected that the authorities, instead of adopting dual policy, formulate separate policies for DTH and the digital system. The coordinator added that the sale of C-Line and Dish TV had already multiplied in Pakistan.

Khan urged the Chief of Army Staff to launch an operation against the illicit sale of C-line and Dish TV, bemoaning that they had met Pemra authorities to seek a solution to the issue, but it did not yield results.

November 14, 2016
Cancel DTH licence auction, cable operators urge PEMRA

MUMBAI: Pakistan Electronic Media Regularity Authority (PEMRA) has been urged to cancel the auction of Direct-to-Home (DTH) licence and postpone launch of the services for three years. PEMRA was scheduled to auction DTH license on 23 November, adding that this decision would affect several thousand cable operators across Pakistan.

Peshawar chapter cable operators of Khyber Pakhtunkhwa in Pakistan have urged Pemra to cancel the auction and postpone the launch.

The Cable Operators Association of Pakistan (COAP) Peshawar chapter also sought take strict action against those providing non-permitted services of operating Indian TV and C-Line across Peshawar. They also sought removal of Indian television channels from all broadcast sources.

Around 14,000 operators having legal cable license were operating cable system across the country, of which 200 had been operating in Khyber-Pakhtunkhwa. In Peshawar alone, around 45 operators are delivering cable services.

Cable Operators Federation of Pakistan coordinator Ali Raza Khan said that they would raise their voice at every forum and would stage protests. Khan said that PEMRA was soon scheduled to auction DTH license.

Khan told journalists at a conference that the cable operators had put in billions in the digital system on the orders of PEMRA but neither the DTH nor the digital policy was clear to the operators since 2000.

Cable TV in Pakistan was earlier operated on the analogue system but later switched to digital cable system for which operators invested huge sums. Khan complained against authorities who were planning to launch DTH system.

PEMRA, Khan said, had received billions as taxes from the operators,. COAP expected that the authorities, instead of adopting dual policy, formulate separate policies for DTH and the digital system. The coordinator added that the sale of C-Line and Dish TV had already multiplied in Pakistan.

Khan urged the Chief of Army Staff to launch an operation against the illicit sale of C-line and Dish TV, bemoaning that they had met Pemra authorities to seek a solution to the issue, but it did not yield results.

November 14, 2016
Arasu says MIB can’t enforce analogue switchoff in Chennai on 31 Dec ’16

MUMBAI: Digital addressable system (DAS) or digitisation of India cable TV could well see a further slowdown if the Tamil Nadu Arasu Cable TV Corporation Ltd (TACTV) has its way. The government-owned Chennai-based MSO has written to the information and broadcasting ministry (MIB) saying that its order to broadcasters to shut off analogue signals by 31 December 2016 cannot be adhered to for the city.

The reason: the Madras High Court has yet to pass judgment on TACTV’s litigation with the MIB and the Telecom Regulatory Authority of India on the applicability of DAS regulations in Chennai and on the issue of a DAS licence to it.

TACTV had earlier applied to the MIB for a DAS licence but not met with any success as both it and the TRAI believe that distribution of television via cable TV should be kept out of the purview of government owned undertakings, which the former is.

Following the rejection of its application, the cable TV MSO had approached the Madras High Court through two writ petitions bearing nos. 7067/2013 and 7068/2013. Both had sought direction to the MIB to process its DAS licence applications dated 5 July 2012, and 23 November 2012. But both are pending before the court.

The Madras High Court had then passed a restraining order on writ petitions 34213/2013 and 40365 of 2015, disallowing the disconnection of analogue TV signals in Chennai.

TACTV says that if broadcasters heed the 31 December 2016 analogue signal switch off notification sent by the MIB to them, it would tantamount to contempt of court and could attract proceedings in that direction.

The cable TV MSO says that the “MIB had itself admitted as much in a counter affidavit dated November 18, 2013 filed before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).”

TRAI had through a press release on 10 December 2013 termed the transmission of analogue signals in Chennai as illegal and had tried to restrain TACTV from transmitting the same.

November 3, 2016
Arasu says MIB can’t enforce analogue switchoff in Chennai on 31 Dec ’16

MUMBAI: Digital addressable system (DAS) or digitisation of India cable TV could well see a further slowdown if the Tamil Nadu Arasu Cable TV Corporation Ltd (TACTV) has its way. The government-owned Chennai-based MSO has written to the information and broadcasting ministry (MIB) saying that its order to broadcasters to shut off analogue signals by 31 December 2016 cannot be adhered to for the city.

The reason: the Madras High Court has yet to pass judgment on TACTV’s litigation with the MIB and the Telecom Regulatory Authority of India on the applicability of DAS regulations in Chennai and on the issue of a DAS licence to it.

TACTV had earlier applied to the MIB for a DAS licence but not met with any success as both it and the TRAI believe that distribution of television via cable TV should be kept out of the purview of government owned undertakings, which the former is.

Following the rejection of its application, the cable TV MSO had approached the Madras High Court through two writ petitions bearing nos. 7067/2013 and 7068/2013. Both had sought direction to the MIB to process its DAS licence applications dated 5 July 2012, and 23 November 2012. But both are pending before the court.

The Madras High Court had then passed a restraining order on writ petitions 34213/2013 and 40365 of 2015, disallowing the disconnection of analogue TV signals in Chennai.

TACTV says that if broadcasters heed the 31 December 2016 analogue signal switch off notification sent by the MIB to them, it would tantamount to contempt of court and could attract proceedings in that direction.

The cable TV MSO says that the “MIB had itself admitted as much in a counter affidavit dated November 18, 2013 filed before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).”

TRAI had through a press release on 10 December 2013 termed the transmission of analogue signals in Chennai as illegal and had tried to restrain TACTV from transmitting the same.

November 3, 2016
Q2-17: Higher subscription revenue, activation fees boosts Ortel revenue

BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported 17.3 percent year-over-year (y-o-y) growth in total revenue from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). Quarter-over-quarter (q-o-q), TIO increased 2.5 percent in the current quarter as compared to the immediate trailing quarter. Ortel reported TIO of Rs 53.7 crore for Q2-17, of Rs 45.8 crore for Q2-16 and Rs 52.4 crore for Q1-17.

Profit after tax (PAT) for Q2-17 declined 10.2 percent y-o-y to Rs 2.5 crore from Rs 2.8 crore in Q2-16, but almost tripled (2.95 times) q-o-q from Rs 0.9 crore in Q1-17.

Company speak:

Ortel President and CEO Rath said, “We reported steady performance during the quarter led by balanced growth in Cable TV and Broadband revenues. Subscription fees in both the segments jumped by 7 percent q-o-q. More importantly, I am happy to highlight that the overall costs have stabilized with 5 percent reduction in Total Expenses. This was possible due to management’s focus on efficiency and cost rationalisation.”

“During the quarter, we turned EBITDA positive in the emerging markets of Andhra Pradesh, Chhattisgarh, West Bengal, Telengana and Madhya Pradesh. I believe, this is a huge positive for us and I am confident that the operating performance in the emerging markets will further improve as the subscriber base increases,” said Rath further.

“The road ahead appears encouraging and we remain on track to demonstrate solid performance in times ahead. Full control over the last mile network as well as our strategy of focusing on B2C customers will continue to drive growth for us,” revealed Rath.

Revenue breakup

Cable TV revenue in Q2-17 increased 35.8 percent y-o-y to Rs 42 crore from Rs 30.9 crore in Q2-16 and increased 2 percent q-o-q from Rs 41.2 crore.

Cable TV Activation fees or connection fees in Q2-17 were almost 6 times (5.9 times) at Rs 4.2 crore as compared to Rs 0.7 crore in Q2-16, but declined 8.1 percent q-o-q from Rs 4.6 crore.

Cable TV subscription revenue in Q2-17 increased 44.4 percent y-o-y to Rs 29.7 crore from Rs 20.6 crore and increased 7.2 percent q-o-q from Rs 27.7 crore. Channel carriage fees in the current quarter declined 16 percent y-o-y to Rs 8.1 crore from Rs 9.7 crore and declined 9 percent q-o-q from Rs 8.9 crore.

Broadband services revenue in Q2-17 increased 22.4 percent to Rs 10 crore from Rs 8.1 crore in Q2-16 and increased 4.8 percent q-o-q from Rs 9.5 crore. Internet connection fees in Q2-17 declined 33 percent y-o-y to Rs 0.5 crore from Rs 0.7 crore and declined 24.8 percent q-o-q. Internet subscription fees in Q2-17 increased 27.9 percent y-o-y to Rs 9.5 crore from Rs 7.4 crore and increased 7 percent q-o-q from Rs 8.8 crore.

Ortel’s revenue from its infrastructure leasing segment in Q2-17 declined 83.5 percent to Rs 1 crore from Rs 6 crore in Q2-16 but increased 3.2 percent q-o-q.

Subscription numbers (revenue generating units – RGUs’), ARPU

During the current quarter, the total subscribers (both cable and television) stood at 804,889 subscribers. Net addition in Q2-17 stood at 34,748

Television ARPU’s remained almost flat. Analog and Digital TV ARPU stood as Rs. 153 per month and Rs. 154 per month for Q2-17 and Q2-16 respectively. For the immediate trailing quarter, ARPU was Rs 152. Digital ARPU’s have been falling. In Q2-17 it was Rs 167, in Q2-16, it was Rs 183 and Q1-17, ARPU was Rs 169.

The company added 1.573 broadband subscribers in Q2-17, taking its total broadband subscriber count to 79,182.

Broadband ARPU in the current quarter increased to Rs 406 from Rs 395 in Q2-16 and Rs 401 in Q1-17.

Let us look at the other numbers reported by Ortel in brief.

Total expenses (TE) in Q2-17 increased 20 percent y-o-y to Rs 37.2 crore as compared to Rs 31 crore, and declined 4.8 percent q-o-q from Rs 39 crore.

Programming cost in Q2-17 declined 8.5 percent y-o-y at Rs. 8.6 crore as compared to Rs 9.4 crore and declined 13.3 percent from Rs 10 crore. Employee expenses during the current quarter stood 6.8 percent higher y-o-y at Rs. 6 crore as compared to Rs 5.6 crore, but declined 3.1 percent q-o-q from Rs 6.2 crore.

EBITDA in Q2-17 (including other income) came in at Rs. 17.1 crore (31.5 percent margin), representing a y-o-y decline of 1.2 percent from Rs 17.3 (35.8 percent margin), but a 22.8 percent q-o-q increase from Rs 13.9 crore (26.3 percent margin).

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.

October 26, 2016
Q2-17: Higher subscription revenue, activation fees boosts Ortel revenue

BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported 17.3 percent year-over-year (y-o-y) growth in total revenue from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). Quarter-over-quarter (q-o-q), TIO increased 2.5 percent in the current quarter as compared to the immediate trailing quarter. Ortel reported TIO of Rs 53.7 crore for Q2-17, of Rs 45.8 crore for Q2-16 and Rs 52.4 crore for Q1-17.

Profit after tax (PAT) for Q2-17 declined 10.2 percent y-o-y to Rs 2.5 crore from Rs 2.8 crore in Q2-16, but almost tripled (2.95 times) q-o-q from Rs 0.9 crore in Q1-17.

Company speak:

Ortel President and CEO Rath said, “We reported steady performance during the quarter led by balanced growth in Cable TV and Broadband revenues. Subscription fees in both the segments jumped by 7 percent q-o-q. More importantly, I am happy to highlight that the overall costs have stabilized with 5 percent reduction in Total Expenses. This was possible due to management’s focus on efficiency and cost rationalisation.”

“During the quarter, we turned EBITDA positive in the emerging markets of Andhra Pradesh, Chhattisgarh, West Bengal, Telengana and Madhya Pradesh. I believe, this is a huge positive for us and I am confident that the operating performance in the emerging markets will further improve as the subscriber base increases,” said Rath further.

“The road ahead appears encouraging and we remain on track to demonstrate solid performance in times ahead. Full control over the last mile network as well as our strategy of focusing on B2C customers will continue to drive growth for us,” revealed Rath.

Revenue breakup

Cable TV revenue in Q2-17 increased 35.8 percent y-o-y to Rs 42 crore from Rs 30.9 crore in Q2-16 and increased 2 percent q-o-q from Rs 41.2 crore.

Cable TV Activation fees or connection fees in Q2-17 were almost 6 times (5.9 times) at Rs 4.2 crore as compared to Rs 0.7 crore in Q2-16, but declined 8.1 percent q-o-q from Rs 4.6 crore.

Cable TV subscription revenue in Q2-17 increased 44.4 percent y-o-y to Rs 29.7 crore from Rs 20.6 crore and increased 7.2 percent q-o-q from Rs 27.7 crore. Channel carriage fees in the current quarter declined 16 percent y-o-y to Rs 8.1 crore from Rs 9.7 crore and declined 9 percent q-o-q from Rs 8.9 crore.

Broadband services revenue in Q2-17 increased 22.4 percent to Rs 10 crore from Rs 8.1 crore in Q2-16 and increased 4.8 percent q-o-q from Rs 9.5 crore. Internet connection fees in Q2-17 declined 33 percent y-o-y to Rs 0.5 crore from Rs 0.7 crore and declined 24.8 percent q-o-q. Internet subscription fees in Q2-17 increased 27.9 percent y-o-y to Rs 9.5 crore from Rs 7.4 crore and increased 7 percent q-o-q from Rs 8.8 crore.

Ortel’s revenue from its infrastructure leasing segment in Q2-17 declined 83.5 percent to Rs 1 crore from Rs 6 crore in Q2-16 but increased 3.2 percent q-o-q.

Subscription numbers (revenue generating units – RGUs’), ARPU

During the current quarter, the total subscribers (both cable and television) stood at 804,889 subscribers. Net addition in Q2-17 stood at 34,748

Television ARPU’s remained almost flat. Analog and Digital TV ARPU stood as Rs. 153 per month and Rs. 154 per month for Q2-17 and Q2-16 respectively. For the immediate trailing quarter, ARPU was Rs 152. Digital ARPU’s have been falling. In Q2-17 it was Rs 167, in Q2-16, it was Rs 183 and Q1-17, ARPU was Rs 169.

The company added 1.573 broadband subscribers in Q2-17, taking its total broadband subscriber count to 79,182.

Broadband ARPU in the current quarter increased to Rs 406 from Rs 395 in Q2-16 and Rs 401 in Q1-17.

Let us look at the other numbers reported by Ortel in brief.

Total expenses (TE) in Q2-17 increased 20 percent y-o-y to Rs 37.2 crore as compared to Rs 31 crore, and declined 4.8 percent q-o-q from Rs 39 crore.

Programming cost in Q2-17 declined 8.5 percent y-o-y at Rs. 8.6 crore as compared to Rs 9.4 crore and declined 13.3 percent from Rs 10 crore. Employee expenses during the current quarter stood 6.8 percent higher y-o-y at Rs. 6 crore as compared to Rs 5.6 crore, but declined 3.1 percent q-o-q from Rs 6.2 crore.

EBITDA in Q2-17 (including other income) came in at Rs. 17.1 crore (31.5 percent margin), representing a y-o-y decline of 1.2 percent from Rs 17.3 (35.8 percent margin), but a 22.8 percent q-o-q increase from Rs 13.9 crore (26.3 percent margin).

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.

October 26, 2016