ITV

Tag: Ebitda

  • Q2-17: Higher subscription revenue, activation fees boosts Ortel revenue

    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.

     

  • Q2-17: Higher subscription revenue, activation fees boosts Ortel revenue

    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.

     

  • Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    BENGALURU: Videocon d2h is the second listed Indian DTH player to report a profit after tax (PAT), after the Essel group’s Dish TV that turned the numbers black last year. Videocon d2h reported PAT of Rs 2.7 crore for the quarter ended 30 June 2016 (Q1-17, current quarter). For the corresponding year ago quarter (Q1-16), the company had reported a loss of Rs 24.4 crore and for the immediate trailing quarter (Q4-16) reported loss was Rs 21.2 crore.

    The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber number growth at 122.9 lakh for Q1-17 as compared to 106.4 lakh and a 3.6 percent quarter-over-quarter (q-o-q) growth from118.6 lakh. Average revenue per user (ARPU) in the current quarter increased to Rs 219 from Rs 205 in Q1-16 and from Rs 214 in the immediate trailing quarter.

    Subscriber acquisition cost (SAC) in Q1-17 was higher at Rs 1,872 as compared to Rs 1,793 in Q1-16 and Rs 1,776 in Q4-16.

    Subscriber monthly churn in the current quarter was 0.49 percent; in Q1-16 it was slightly lower at 0.46 percent, while in the immediate trailing quarter it was much higher at 0.58 percent.

    Videocon d2h reported 23.5 percent y-o-y growth in total revenue from operations for Q1-17 at Rs 818.5 crore as compared to Rs 662.8 crore and a 6.1 percent q-o-q growth from Rs 771.5 crore.

    DAS III and IV are sunshine periods for the television carriage industry. Activation revenues have been adding to the top lines and bottom lines of most of the players. Videocon d2h subscription and activation revenue in the current quarter increased 23.9 percent y-o-y to Rs 752.3 crore from Rs 607.3 crore and increased 6.6 percent q-o-q from Rs 705.6 crore.

    Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m delighted to share that the first quarter of fiscal 2017 has been a landmark quarter for our Company in its enduring journey. In this quarter, we have had a positive profit after tax and achieved free cash flow breakeven. This is a great achievement.

    “In line with our focus on paying down term loans, the Company recently pre-paid further term loans, strengthening our balance sheet further. We have significantly de-levered our balance sheet and become a stronger company going from strength to strength, reducing term loans by around $200 million since our IPO, with over $ 55 million repaid in the current fiscal year.”

    Speaking on the results, Videocon d2h CEO Anil Khera said, “We are happy to report that Adjusted EBITDA for the first quarter of fiscal year 2017 grew 32.4 percent year on year, which is primarily a result of strong subscriber growth, higher revenue realizations and better operating margins. During the quarter, we expanded our retail network in areas that come under India’s Phase III and Phase IV Digitalization program. We are happy to announce our strategic tie-up with Vodafone to enable recharge using their well-established m-pesa digital wallet and at Vodafone outlets, as it will give our customers an easy and efficient way to recharge their d2h account at their convenience.”

    Let us look at some of the other metrics reported by Videocon d2h

    Adjusted EBIDTA grew 32.4 percent y-o-y to Rs 251.9 crore (30.8 percent margin) from Rs 190.3 crore (28.7 percent margin) and grew 15 percent q-o-q from Rs 219.1 crore (28.4 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 70 in Q1-17 from Rs 61 in Q1-16 and from Rs 63 in Q4-16.

    Content costs margin in Q1-17 has reduced to 36.1 percent as compared to 37 percent in the corresponding year ago quarter and 37.5 percent in the immediate trailing quarter.

    Total expense in Q1-17 increased 19.7 percent y-o-y to Rs 739.8 crore from Rs 618.1 crore and increased 3.8 percent from Rs 721.8 crore.

    Selling and distribution expense in the current quarter increased 25.7 percent y-o-y to Rs 64 crore from Rs 50.9 crore, but declined 3.6 percent q-o-q from Rs 66.4 crore.

    Employee benefit expense in Q1-17 was 4 percent higher at Rs 32.2 crore as compared to Rs 30.9 crore in Q1-16 and 10.7 percent more than the Rs 29.1 crore in Q4-16.

    Net finance cost in Q1-17 was Rs 75.9 crore (9.3 percent of revenue from operations); in Q1-16 net finance cost was Rs 76.5 crore (11.5 percent of revenue from operations) and in Q4-16 it was Rs 77.8 crore (10.1 percent of revenue from operations).

    The company had term loans of Rs 2,187 crore and total cash and short term investments of Rs 612 crore as of June 30, 2016. Videocon d2h says that it has repaid term loans amounting to Rs 387 crore in the current fiscal year. With this, it has reduced total term loans by over Rs 1,300 crore since its IPO.

  • Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    BENGALURU: Videocon d2h is the second listed Indian DTH player to report a profit after tax (PAT), after the Essel group’s Dish TV that turned the numbers black last year. Videocon d2h reported PAT of Rs 2.7 crore for the quarter ended 30 June 2016 (Q1-17, current quarter). For the corresponding year ago quarter (Q1-16), the company had reported a loss of Rs 24.4 crore and for the immediate trailing quarter (Q4-16) reported loss was Rs 21.2 crore.

    The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber number growth at 122.9 lakh for Q1-17 as compared to 106.4 lakh and a 3.6 percent quarter-over-quarter (q-o-q) growth from118.6 lakh. Average revenue per user (ARPU) in the current quarter increased to Rs 219 from Rs 205 in Q1-16 and from Rs 214 in the immediate trailing quarter.

    Subscriber acquisition cost (SAC) in Q1-17 was higher at Rs 1,872 as compared to Rs 1,793 in Q1-16 and Rs 1,776 in Q4-16.

    Subscriber monthly churn in the current quarter was 0.49 percent; in Q1-16 it was slightly lower at 0.46 percent, while in the immediate trailing quarter it was much higher at 0.58 percent.

    Videocon d2h reported 23.5 percent y-o-y growth in total revenue from operations for Q1-17 at Rs 818.5 crore as compared to Rs 662.8 crore and a 6.1 percent q-o-q growth from Rs 771.5 crore.

    DAS III and IV are sunshine periods for the television carriage industry. Activation revenues have been adding to the top lines and bottom lines of most of the players. Videocon d2h subscription and activation revenue in the current quarter increased 23.9 percent y-o-y to Rs 752.3 crore from Rs 607.3 crore and increased 6.6 percent q-o-q from Rs 705.6 crore.

    Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m delighted to share that the first quarter of fiscal 2017 has been a landmark quarter for our Company in its enduring journey. In this quarter, we have had a positive profit after tax and achieved free cash flow breakeven. This is a great achievement.

    “In line with our focus on paying down term loans, the Company recently pre-paid further term loans, strengthening our balance sheet further. We have significantly de-levered our balance sheet and become a stronger company going from strength to strength, reducing term loans by around $200 million since our IPO, with over $ 55 million repaid in the current fiscal year.”

    Speaking on the results, Videocon d2h CEO Anil Khera said, “We are happy to report that Adjusted EBITDA for the first quarter of fiscal year 2017 grew 32.4 percent year on year, which is primarily a result of strong subscriber growth, higher revenue realizations and better operating margins. During the quarter, we expanded our retail network in areas that come under India’s Phase III and Phase IV Digitalization program. We are happy to announce our strategic tie-up with Vodafone to enable recharge using their well-established m-pesa digital wallet and at Vodafone outlets, as it will give our customers an easy and efficient way to recharge their d2h account at their convenience.”

    Let us look at some of the other metrics reported by Videocon d2h

    Adjusted EBIDTA grew 32.4 percent y-o-y to Rs 251.9 crore (30.8 percent margin) from Rs 190.3 crore (28.7 percent margin) and grew 15 percent q-o-q from Rs 219.1 crore (28.4 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 70 in Q1-17 from Rs 61 in Q1-16 and from Rs 63 in Q4-16.

    Content costs margin in Q1-17 has reduced to 36.1 percent as compared to 37 percent in the corresponding year ago quarter and 37.5 percent in the immediate trailing quarter.

    Total expense in Q1-17 increased 19.7 percent y-o-y to Rs 739.8 crore from Rs 618.1 crore and increased 3.8 percent from Rs 721.8 crore.

    Selling and distribution expense in the current quarter increased 25.7 percent y-o-y to Rs 64 crore from Rs 50.9 crore, but declined 3.6 percent q-o-q from Rs 66.4 crore.

    Employee benefit expense in Q1-17 was 4 percent higher at Rs 32.2 crore as compared to Rs 30.9 crore in Q1-16 and 10.7 percent more than the Rs 29.1 crore in Q4-16.

    Net finance cost in Q1-17 was Rs 75.9 crore (9.3 percent of revenue from operations); in Q1-16 net finance cost was Rs 76.5 crore (11.5 percent of revenue from operations) and in Q4-16 it was Rs 77.8 crore (10.1 percent of revenue from operations).

    The company had term loans of Rs 2,187 crore and total cash and short term investments of Rs 612 crore as of June 30, 2016. Videocon d2h says that it has repaid term loans amounting to Rs 387 crore in the current fiscal year. With this, it has reduced total term loans by over Rs 1,300 crore since its IPO.

  • FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 13.7 per cent growth in Total Income from operations (TIO) and 51.7 percent growth in operating profits (EBIDTA) for the fiscal ended 31 March 2016 (FY-16, current year). The company reported TIO of Rs 2,081.63 crore in FY-16 as compared to Rs 1,831.60 crore in the previous year. The company’s EBDITA in the current year was Rs 388.69 crore (18.7 percent EBIDTA margin) and was Rs 256.16 crore (14 percent EBIDTA margin) in the previous year. The company narrowed its loss in the current year to Rs 163.13 crore in FY-16 from a loss of Rs 180.45 crore in FY-16.

    High growth in Activation fees and Broadband revenue are chiefly responsible for the improved performance.

    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.

    The company’s broadband segment has been performing very well, as a matter of fact, among the national level MSOs’ Hathway has the highest subscription and revenue numbers among all of them. Hathway says that it has invested Rs 206 crore into its Broadband business in FY-16.

    Hathway’s consolidated broadband subscribers increased 38 percent in FY16 to 6.272 lakh from 4.558 lakh in FY-15. Consolidated broadband revenue in the current year increased 61 percent to Rs 399.3 crore from Rs 247.5 crore in the previous year. Broadband ARPU in the current year increased to Rs 670 from Rs 530 in the previous year.

    Consolidated reported CATV subscription revenue in the current year declined 3.3 percent to Rs 812.7 crore from Rs 840.3 crore in FY-15.

    The company says that it deployed 22 lakh set top boxes in FY-16, 10 lakh of them in the last quarter of FY-16, and it has 1.06 crore CATV digital subscriber’s (87 percent of its subscriber base of 1.23 crore). Its DAS phase I area standalone Average Revenue Per User (ARPU) in the quarter ended 31 March 2016 (Q4-16, current quarter) increased to Rs 105 from Rs 100 in Q4-15. Its standalone DAS phase II area ARPU in Q4-16 increased to Rs 86 from Rs 67 in the corresponding year ago quarter.

    Placement revenue in the current year declined 4 percent to Rs 598.8 crore from Rs 626.9 crore in the previous year.

    Activation revenue almost tripled (2.8 times) in FY-16 to Rs 227.9 crore from Rs 82.4 crore in FY-15.

    Other revenue increased 24 percent in FY-15 to Rs 42.9 crore from Rs 34.6 in the previous year.

    Hathway’s Total Expenditure in FY-16 increased 8.9 percent to Rs 2,072.56 crore (99.6 percent of TIO) from Rs 1,903.38 crore (103.9 percent of TIO) in the previous year.

    Pay channel cost in the current year increased 1 percent to Rs 821.65 crore (39.5 percent of TIO) from Rs 813.13 crore (44.4 percent of TIO) in FY-15.

  • FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    FY-16: Hathway revenue up 13.7 percent, EBIDTA up 51.7 percent

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 13.7 per cent growth in Total Income from operations (TIO) and 51.7 percent growth in operating profits (EBIDTA) for the fiscal ended 31 March 2016 (FY-16, current year). The company reported TIO of Rs 2,081.63 crore in FY-16 as compared to Rs 1,831.60 crore in the previous year. The company’s EBDITA in the current year was Rs 388.69 crore (18.7 percent EBIDTA margin) and was Rs 256.16 crore (14 percent EBIDTA margin) in the previous year. The company narrowed its loss in the current year to Rs 163.13 crore in FY-16 from a loss of Rs 180.45 crore in FY-16.

    High growth in Activation fees and Broadband revenue are chiefly responsible for the improved performance.

    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.

    The company’s broadband segment has been performing very well, as a matter of fact, among the national level MSOs’ Hathway has the highest subscription and revenue numbers among all of them. Hathway says that it has invested Rs 206 crore into its Broadband business in FY-16.

    Hathway’s consolidated broadband subscribers increased 38 percent in FY16 to 6.272 lakh from 4.558 lakh in FY-15. Consolidated broadband revenue in the current year increased 61 percent to Rs 399.3 crore from Rs 247.5 crore in the previous year. Broadband ARPU in the current year increased to Rs 670 from Rs 530 in the previous year.

    Consolidated reported CATV subscription revenue in the current year declined 3.3 percent to Rs 812.7 crore from Rs 840.3 crore in FY-15.

    The company says that it deployed 22 lakh set top boxes in FY-16, 10 lakh of them in the last quarter of FY-16, and it has 1.06 crore CATV digital subscriber’s (87 percent of its subscriber base of 1.23 crore). Its DAS phase I area standalone Average Revenue Per User (ARPU) in the quarter ended 31 March 2016 (Q4-16, current quarter) increased to Rs 105 from Rs 100 in Q4-15. Its standalone DAS phase II area ARPU in Q4-16 increased to Rs 86 from Rs 67 in the corresponding year ago quarter.

    Placement revenue in the current year declined 4 percent to Rs 598.8 crore from Rs 626.9 crore in the previous year.

    Activation revenue almost tripled (2.8 times) in FY-16 to Rs 227.9 crore from Rs 82.4 crore in FY-15.

    Other revenue increased 24 percent in FY-15 to Rs 42.9 crore from Rs 34.6 in the previous year.

    Hathway’s Total Expenditure in FY-16 increased 8.9 percent to Rs 2,072.56 crore (99.6 percent of TIO) from Rs 1,903.38 crore (103.9 percent of TIO) in the previous year.

    Pay channel cost in the current year increased 1 percent to Rs 821.65 crore (39.5 percent of TIO) from Rs 813.13 crore (44.4 percent of TIO) in FY-15.

  • Nickelodeon sees a 40 per cent jump in ad sales in a year

    Nickelodeon sees a 40 per cent jump in ad sales in a year

    MUMBAI: The market size for the kids entertainment genre has been growing by leaps and bounds with a  possible target audience of 400 million (40 crore). That’s about a third of the population of the country! The genre commands 6 per cent of the total viewership share on television on an all India basis. In the case of urban areas, the share goes up to 8 per cent. Though the genre’s share of the total television ad sales pie is still 3 percent, the category is definitely on a growth trajectory.

    Nickelodeon, as a network and a franchise, has more than just keep pace with this rapid growth by registering revenue growth of 34 per cent with 10 to 15 percent subscription growth and an increase in ad sales revenue by 40 percent in the last one year. Nickelodeon’s ad sales revenue contributes 10 per cent of the network’s yearly earnings. Increases in viewership and market share in the genre has been the driving forces for this growth, as Nick bagged the number one spot in the genre’s viewership for 20 months in a row according to data furnished by the network. This includes the channel’s consistent top position on the ratings chart since the BARC data roll out.

    As per BARC data shared by the network, between week 41 of 2015 and week 13 of 2016, Nick and Sonic have a 28 per cent of the viewership pie, while Nick alone leads the genre with 23 per cent share. Sonic, which is mainly on the DTH platforms of major operators, has also added to this growth story, more so in the last couple of months.

    It is the network’s strength in content and storytelling that attracts advertisers to its channels, says Viacom18’s Kids Cluster EVP and business head Nina Elavia Jaipuria. Between 2014 and 2015 there has been a considerable growth in number of advertisers. “While kids contribute to 3 per cent of the ad sales pie, I am happy to share that several advertisers even from the non- kids sectors are coming through more and more to be part of the Nick and Sonic growth journey,” informs Jaipuria with a smile.

    This growth in advertisers is aided by the wholesome advertising solutions that the network can provide. These solutions range from Free Commercial Time (FCT), merchandising offers, non-FCT, on ground amplification of campaigns and licensing and in film branding. The network says that it can tailor such solutions for brands based on their requirements.

    “Most of the significant growth has come from yield and ER growth, signifying that it’s the rates that are doing well for us. Having said that, we have also made great inroads in the non-FCT part of the ad sales pitch, because of the flexibility we have with the number of characters. We offer licensing deals to our advertisers as part of the package which allows them to use our resources more flexibly,” Jaipuria shares, while laying stress on the need to optimally monetise IPs. She also cites example of the several branded integrations and in film placements that channel has carried out for brands like Horlicks, Britannia, Boost, etc.

    While Non FCT alone won’t sustain the channels ad revenue wise, it will definitely supplement their revenue growth and offerings for the advertisers while engaging kids at the same time.

    Nickelodeon has also seen a jump of 60 per cent in its merchandising business going from 20 categories to 40 categories, out of which the ‘Back To School’ range of products will soon hit the markets this summer.

    A combined growth in ER, ancillary revenue,  subscription revenue and ad sales revenue has pushed up  the topline for the network, which in turn has helped the network push up its bottom line as well i e,  EBITDA tripled three years in a row.  “I am happy to say that it has grown by three times in two years in row. We are now a significant profit contributor to Viacom 18,” states a jubilant Jaipuria before signing off.

     

  • Nickelodeon sees a 40 per cent jump in ad sales in a year

    Nickelodeon sees a 40 per cent jump in ad sales in a year

    MUMBAI: The market size for the kids entertainment genre has been growing by leaps and bounds with a  possible target audience of 400 million (40 crore). That’s about a third of the population of the country! The genre commands 6 per cent of the total viewership share on television on an all India basis. In the case of urban areas, the share goes up to 8 per cent. Though the genre’s share of the total television ad sales pie is still 3 percent, the category is definitely on a growth trajectory.

    Nickelodeon, as a network and a franchise, has more than just keep pace with this rapid growth by registering revenue growth of 34 per cent with 10 to 15 percent subscription growth and an increase in ad sales revenue by 40 percent in the last one year. Nickelodeon’s ad sales revenue contributes 10 per cent of the network’s yearly earnings. Increases in viewership and market share in the genre has been the driving forces for this growth, as Nick bagged the number one spot in the genre’s viewership for 20 months in a row according to data furnished by the network. This includes the channel’s consistent top position on the ratings chart since the BARC data roll out.

    As per BARC data shared by the network, between week 41 of 2015 and week 13 of 2016, Nick and Sonic have a 28 per cent of the viewership pie, while Nick alone leads the genre with 23 per cent share. Sonic, which is mainly on the DTH platforms of major operators, has also added to this growth story, more so in the last couple of months.

    It is the network’s strength in content and storytelling that attracts advertisers to its channels, says Viacom18’s Kids Cluster EVP and business head Nina Elavia Jaipuria. Between 2014 and 2015 there has been a considerable growth in number of advertisers. “While kids contribute to 3 per cent of the ad sales pie, I am happy to share that several advertisers even from the non- kids sectors are coming through more and more to be part of the Nick and Sonic growth journey,” informs Jaipuria with a smile.

    This growth in advertisers is aided by the wholesome advertising solutions that the network can provide. These solutions range from Free Commercial Time (FCT), merchandising offers, non-FCT, on ground amplification of campaigns and licensing and in film branding. The network says that it can tailor such solutions for brands based on their requirements.

    “Most of the significant growth has come from yield and ER growth, signifying that it’s the rates that are doing well for us. Having said that, we have also made great inroads in the non-FCT part of the ad sales pitch, because of the flexibility we have with the number of characters. We offer licensing deals to our advertisers as part of the package which allows them to use our resources more flexibly,” Jaipuria shares, while laying stress on the need to optimally monetise IPs. She also cites example of the several branded integrations and in film placements that channel has carried out for brands like Horlicks, Britannia, Boost, etc.

    While Non FCT alone won’t sustain the channels ad revenue wise, it will definitely supplement their revenue growth and offerings for the advertisers while engaging kids at the same time.

    Nickelodeon has also seen a jump of 60 per cent in its merchandising business going from 20 categories to 40 categories, out of which the ‘Back To School’ range of products will soon hit the markets this summer.

    A combined growth in ER, ancillary revenue,  subscription revenue and ad sales revenue has pushed up  the topline for the network, which in turn has helped the network push up its bottom line as well i e,  EBITDA tripled three years in a row.  “I am happy to say that it has grown by three times in two years in row. We are now a significant profit contributor to Viacom 18,” states a jubilant Jaipuria before signing off.

     

  • 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.