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Tag: ICRA

  • TV ad revenues recover by 86% in Q2 : ICRA

    TV ad revenues recover by 86% in Q2 : ICRA

    KOLKATA: After bearing the brunt of the initial shock of the pandemic, TV broadcasters saw a strong sequential recovery of 86 per cent in advertising revenue in Q2. Although it was lower by 20 per cent year-on-year basis, the growth was aided by the lifting of the lockdown, easing of restrictions and resumption of fresh content on general entertainment channels (GECs) with effect from June 2020, according to credit rating agency ICRA Ltd.

    As per the report, GECs regained their popularity and market share that they had lost to news and movies during the quarantine phase. FMCG, ecommerce and consumer durables remained the top contributors in terms of advertisement spends in Q2 FY2021.

    Overall, TV broadcasters in ICRA’s sample set reported a 21 per cent  year-on-year decline in revenues in H1 FY2021. Advertisement revenues witnessed a sharp 40 per cent year-on-year decline in H1 FY2021, though the same was partly offset by the nine per cent year-on-year growth in subscription revenues as subscribers increased their TV viewing during the pandemic.

    In Q1, ICRA’s sample set of TV broadcasters witnessed a 59 per cent year-on-year decline in advertisement revenues, as corporates pulled back their advertisement spends, amid the uncertainty during the then imposed lockdown and the pandemic. Depending on genres, advertisement revenues were impacted by 25-60 per cent (vis-a-vis pre-Covid average monthly revenues) in Q1 FY2021.

    While news and movies genres were on the lower end of the spectrum, with an average decline of 25-30 per cent in advertisement revenues, GECs and sports channels witnessed a sharp 50-60 per cent reduction in advertisement revenues in Q1 FY2021, given the absence of fresh content and deferment of high viewership driving sports events – including the IPL, UEFA 2020, Olympics 2020, among others.

    TV viewing remained high during the first half of the year, which resulted in increase in subscription revenues, up by 12 per cent on a year-on-year basis in Q1 and seven per cent in Q2. Since advertisement revenues account for more than 55 per cent of the total revenues of TV broadcasters, this decline adversely impacted the operating profit margin (OPM) of TV broadcasters, which contracted to 26.6 per cent in H1 (for ICRA’s sample set).

    However, ICRA expects the TV broadcasting industry to witness year-on-year contraction of 15-20 per cent in revenues in FY21. Subscription revenues for TV broadcasters are expected to hold steady in H2 FY21 as consumers are likely to continue their TV viewing amid limited outdoor avenues of entertainment. Overall, subscription revenues are expected to witness mid-single digit revenue growth in FY2021.

    Advertisement revenues witnessed good traction during the festive season and most of the TV broadcasters have witnessed an uptick in ad rates in Q3 FY2021. Industry players expect to reach pre-Covid advertisement revenues in Q3 FY2021. Advertisement revenues will thus witness a strong recovery in H2 FY21, as economic activity and growth improves, though it will be lower by five per cent on a year-on-year basis.

    The OPM in the period was supported by the savings on fresh content creation costs. Given the anticipated year-on-year revenue decline for H2 FY21, ICRA expects the OPM to remain under pressure and overall contract by 400-500 bps in FY21. Profitability pressures have also risen due to the increasing investments in content necessitated by increased competition from digital platforms, ICRA states.

  • CNBC-TV18 and Microsoft launch SMB UTSAV to recognize and reward unsung SMB heroes of the Indian economy

    CNBC-TV18 and Microsoft launch SMB UTSAV to recognize and reward unsung SMB heroes of the Indian economy

    Small and Medium Businesses have been the backbone of the Indian economy. While Covid-19 did hinder their streamlined work, it also made them appreciate the role of modern technology plays in growth and prosperity in this digital age, and how it can help them step into the future. Driving this similar thought ahead and aiming to help SMBs in this long run – CNBC-TV18, Indian leading English business news channel has joined hands with Microsoft to launch ‘SMB Utsav’. This contest is an opportunity of recognition for all the unsung heroes of the Indian economy to get business and technology offerings worth upto ₹ 15 lakhs and bolster their growth in the new paradigm.

    Started from 7th December 2020, this is a 4 month-long event, which will identify and award the best SMB for their business/organizational resilience every month. The aim is to provide a game-changing environment for small businesses that will enable flexibility, operational efficiencies, and increased productivity. This in turn will help the winning SMB to drive innovation and unlock opportunities. With the help of Investment Information and Credit Rating Agency of India(ICRA) analytics – the knowledge partners, CNBC-TV18 will shortlist businesses from the received entries and assess their mettle that helped tide over the recent adversities. The winner will be awarded benefits of worth 18 lakh which will include technology benefits, business benefits by Microsoft and country wide promotion on the CNBC-TV18 platforms.

    The CNBC-TV18 editorial panel along with ICRA will conduct a 3-phase methodology(Judging process), which will be a deliberate procedure designed on a combination of various criteria, including online submission,  shortlisting, and at the final stage,  the jury meet.

    Commenting on the same, Smriti Mehra, CEO at CNBC-TV18 said, “Considering the situation of the current time, we have realized that implementation of technology is a must for every business. With more and more innovations coming into the picture, it is only practical that SMBs adapt to them and take their businesses to the next step. Using the expertise of Microsoft, we want to help businesses realize their potential and give them a boost towards their growth with digital transformation and help uplift the economy of our country.”

    To know more about the event or nominate yourselves, you can visit the given

    link: https://www.cnbctv18.com/ms/smbutsav/ 

  • Subscribers’ DTH/Cable bills to go down by 14% for a-la-carte channels: ICRA

    Subscribers’ DTH/Cable bills to go down by 14% for a-la-carte channels: ICRA

    MUMBAI: The recent Telecom Regulatory Authority of India (TRAI) amendments over tariff charges could potentially lower the direct-to home (DTH)/ cable bills of the subscribers up to 14 per cent from the present levels, a credit rating agency ICRA said in an analytical report.

    According to a press statement, ICRA said that the amendment encourage subscribers to exercise their right to choose and opt for a-la-carte channels. TRAI on 1 January 2020 amended some provisions of the Telecommunication (Broadcasting and Cable) Services (Eight) (Addressable Systems) Tariff Order, 2017.

    The amendments are slated to come in effect from March 1, 2020.

    The Tariff Order released in 2017 had allowed the subscribers to choose the nature of channels as free to air (FTA) or pay channel as well as declare a-la-carte pricing of all channels.

    However, contrary to TRAI’s expectations, the rating agency said, given the high channel pricing of the popular general entertainment channels (GECs) and sports channels (with 66 of the 330 existing pay channels being priced at the ceiling rate of Rs. 19 per month).

    This move by broadcaster had tarnished the very purpose of the Tariff Order, resulting in up to 23% surge in bills for subscribers, ICRA estimated, and continued the dominance of bouquets in the subscription patterns.

    ICRA’s vice president Kinjal Shah said, “The recent amendments will adversely impact the broadcasters, revenues, the subscription revenues are also expected to reduce (as subscription charges for a-la-carte channels will reduce and due to the expected shift of subscribers from bouquets to a-la-carte selection).”

    Shah further said, “Furthermore, given the reduction in the number of channels that can be offered in a bouquet (for a given price), bundling of non-popular channels with established ones will reduce, thereby impacting their reach and thus advertisement revenues for the broadcaster. This, however, would eventually lead to an increased focus on content quality.”

    TRAI in the amendment of 2017 tariff order has also increased the channel offerings for the network capacity fee (NCF) of Rs. 130 (excluding taxes) per month to 200 standard definitions (SD) (pay or FTA) channels from the present 100 SD channels.  

    The amendments are expected to be a mixed bag of positives and negatives for DPOs. The overall reduction in NCF and the cap on NCF to be charged for additional TVs in a multi-TV home is negative for the DPOs.

    TRAI has, however, allowed DPOs to offer different NCF across geographical regions (state / district / towns) as well as offer promotional schemes (on NCF / Distributor Retail Price – DRPs), up to 90 days at a time, twice in a calendar year. DPOs are additionally allowed to offer discounts on NCF / DRPs for long-term subscription plans.  

    ICRA’s assistant vice president Sakshi Suneja, said, “After the recent changes in the tariff, the prices of popular GECs and sports channels are expected to reduce from Rs. 19 per month to Rs. 12 per month, given the revised ceiling rates for a-la-carte channels, to be included in bouquets.”

    “The amendments also seek to improve the attractiveness of a-la-carte channels, by reducing discounts that can be offered on bouquet pricing to 33% (vis-a-vis a-lacarte prices, from the existing average levels of discounts of 40-54%),” Suneja said.

    She pointed out that through the introduction of two new conditions: i) capping the maximum retail price (MRP) of a-la-carte channel that can be included in a bouquet to up to three times of the average MRP per month of a pay channel of that bouquet and ii) MRP, per month, of a pay channel to not exceed the MRP, per month, of the bouquet containing that pay channel.

  • Wireline broadband pricing might reduce by 40-50%

    Wireline broadband pricing might reduce by 40-50%

    MUMBAI: Home broadband, television services and integrating wireline voice is expected to move towards bundled plans by the Indian wireline broadband market. With this, ICRA predicts, the pricing is expected to reduce by around 40 to 50 per cent.

    As per the ET reports, the agency said that similar to the strong growth that was observed for wireless broadband, wireline broadband subscriber base can also witness growth due to its high price elasticity and expanding demand. It also added that over the next five years, the home broadband and DTH market would see a greater role of telecom operators with a higher subscriber base and revenue generation. But the key watch-outs for the industry would be the extent of competitive intensity, and the need for capex.

    ICRA sector head and VP – corporate ratings Harsh Jagnani said that the wireline broadband penetration in India is much lower as compared to international standards and presents a significant opportunity for telcos. 

    In India, the wireline broadband coverage would largely expand through the fibre to the home (FTTH) networks which have the capability to deliver high speeds with stability in the network. "This will allow it to be the bedrock for content delivery to homes, thereby encompassing an umbrella of services including wireline voice, wireline broadband and television. Increasingly, the television industry is shifting towards content on demand and high-quality videos/content," he said.

    ICRA said in a statement that India's wireline broadband subscriber base can increase to 100 million households over the next five years, and the revenue generation from these segments could expand to Rs 80,000 crore as against Rs 14,500 crore now from wireline voice, home broadband and DTH services, with the combined ARPU of Rs 875.

    "In such a scenario, wireline broadband can be the next growth driver with the potential to subsume television/DTH services, also providing diversification from the mobile services revenues," ICRA said.

    The penetration of wireline broadband is low in the country as of now and the subscriber base has not seen any meaningful traction over the years. As on September 2018, the subscriber base was only 18 million, accounting for less than 7 per cent of the total households, much lower than 44 per cent in Brazil and 99 per cent in France. In the television segment, while the total penetration is around 66 per cent of the total households, of this, around 65 per cent are provided over copper cable, on which the capability to provide high bandwidth services are limited and not fully developed.

    Jagrani said, “Even at a penetration level of 30 per cent of the households, this could translate into subscriber base of 100 million by FY2024, generating revenues to the tune of Rs 80,000 crore. Correspondingly the revenue contribution from these services is expected to increase from current 8 per cent to around 30 per cent on an expanded revenue base."

    As of now, the industry has fibre network of 17,20,000 route km. Much deeper and wider penetration is required to be able to meet the envisaged FTTH demand, which will encumber the financials of the telcos.

  • Telcos may migrate to ARPU-based model as 5-7 per cent hit feared

    Telcos may migrate to ARPU-based model as 5-7 per cent hit feared

    MUMBAI: Loss of revenue on account of competitive pressure catalysed by the extension of Mukesh Ambani-led Reliance Jio free services and demonetisation may cumulatively affect telcos by 5-7 per cent.

    RJio recently announced an extension of its free services till 31 March, 2017. Speaking on the impact on the Indian telecom industry, ICRA Limited Associate Head – Corporate Ratings Harsh Jagnani, said: “At a time when the industry is already facing pressures on the operating metrics, owing to heightened competition, the extension of free services by RJio is expected to further push down the realisations in both the voice and the data segments. The impact is expected to be exacerbated by demonetisation of the higher denomination currency, which can lead to revenue loss of the telcos, especially in the pre-paid segment.”

    RJio, which launched its services in September 2016 with free voice calling along with lifetime free roaming, provided free unlimited data and a bouquet of mobile applications free till 31 December, 2016, as part of the inaugural offer. Recently, the company announced an extension of its free services till 31 March, 2017.

    The tariffs proposed, apart from being disruptive, are not looking at pricing voice and data separately, instead, it is seeing a subscriber holistically and offering bundled packages. The highlight is to develop a market with deep penetration and high consumption, especially for data, thereby targeting high average revenue per user (ARPU) subscribers.

    Apart from attractive pricing, other factors which can help RJio build a sizeable subscriber base are – (a) a big bang launch with a novelty factor, (b) a fresh network which gives good service, (c) a strong device ecosystem, and (d) a wide bouquet of content. These can translate into rapid subscriber additions, which would intensify the competition in the sector and increase the subscriber acquisition/retention costs for other operators. Nevertheless, the extent of subscriber addition and service quality delivered by RJio, its pricing strategies in the longer term, and the response by other operators remain watch events for the industry.

    ICRA is of the opinion that increasingly the industry would migrate from the revenue per minute (RPM) or the average revenue per megabyte (ARMB) approach to ARPU-based approach.

    “At a time when the industry is reeling under a Rs. 4,25,000-crore debt, this extension of free services by RJio has added to the industry’s woes. Heightened competitive pressures would impact the performance of the telcos during the next two quarters i.e. Q3 and Q4 of FY2017. Revenue loss, owing to demonetisation and pressure on operating metrics due to competitive pressures, intensified by extension of free services by RJio, are expected to negatively impact the revenue of the industry by 5-7% during the next two quarters,” Jagnani reiterated.

  • Telcos may migrate to ARPU-based model as 5-7 per cent hit feared

    Telcos may migrate to ARPU-based model as 5-7 per cent hit feared

    MUMBAI: Loss of revenue on account of competitive pressure catalysed by the extension of Mukesh Ambani-led Reliance Jio free services and demonetisation may cumulatively affect telcos by 5-7 per cent.

    RJio recently announced an extension of its free services till 31 March, 2017. Speaking on the impact on the Indian telecom industry, ICRA Limited Associate Head – Corporate Ratings Harsh Jagnani, said: “At a time when the industry is already facing pressures on the operating metrics, owing to heightened competition, the extension of free services by RJio is expected to further push down the realisations in both the voice and the data segments. The impact is expected to be exacerbated by demonetisation of the higher denomination currency, which can lead to revenue loss of the telcos, especially in the pre-paid segment.”

    RJio, which launched its services in September 2016 with free voice calling along with lifetime free roaming, provided free unlimited data and a bouquet of mobile applications free till 31 December, 2016, as part of the inaugural offer. Recently, the company announced an extension of its free services till 31 March, 2017.

    The tariffs proposed, apart from being disruptive, are not looking at pricing voice and data separately, instead, it is seeing a subscriber holistically and offering bundled packages. The highlight is to develop a market with deep penetration and high consumption, especially for data, thereby targeting high average revenue per user (ARPU) subscribers.

    Apart from attractive pricing, other factors which can help RJio build a sizeable subscriber base are – (a) a big bang launch with a novelty factor, (b) a fresh network which gives good service, (c) a strong device ecosystem, and (d) a wide bouquet of content. These can translate into rapid subscriber additions, which would intensify the competition in the sector and increase the subscriber acquisition/retention costs for other operators. Nevertheless, the extent of subscriber addition and service quality delivered by RJio, its pricing strategies in the longer term, and the response by other operators remain watch events for the industry.

    ICRA is of the opinion that increasingly the industry would migrate from the revenue per minute (RPM) or the average revenue per megabyte (ARMB) approach to ARPU-based approach.

    “At a time when the industry is reeling under a Rs. 4,25,000-crore debt, this extension of free services by RJio has added to the industry’s woes. Heightened competitive pressures would impact the performance of the telcos during the next two quarters i.e. Q3 and Q4 of FY2017. Revenue loss, owing to demonetisation and pressure on operating metrics due to competitive pressures, intensified by extension of free services by RJio, are expected to negatively impact the revenue of the industry by 5-7% during the next two quarters,” Jagnani reiterated.

  • Delay in Phase III monetisation likely to disturb profitability of MSOs: ICRA

    Delay in Phase III monetisation likely to disturb profitability of MSOs: ICRA

    MUMBAI: In the cable TV space, in the current fiscal the revenue growth of multiple system operators (MSOs) will remain sensitive to regulatory changes, says ICRA. While lifting of stay orders and consequent discontinuation of analog signals in Phase III markets will remain a key subscription revenue growth driver, any extension with respect to Phase IV deadline (beyond December 31, 2016) will impact the activation revenues.

    With an estimated population of over 60 million households in Phase IV markets, cable TV players do not anticipate any extension in Phase IV deadline. However, the implementation is expected to be along the experience of Phase III, with analog signals being discontinued in a phased manner. Of the analog population in Phase III and Phase IV markets, residual analog subscriber base amongst the top three MSOs stood at ~9.5 million subscribers only (as on March 31, 2016), against a total analog population of over 6 0 million in the country, indicating healthy growth opportunities for DTH operators and regional MSOs. In this direction, DTH operators have introduced lower priced vanilla STBs and channel packages to tap the opportunity in Phase IV markets; however, DD Free Dish is also expected to emerge as a key player in Phase IV, given the price sensitive nature of subscribers.

    “Over the last few years, market leaders in the cable TV space have adopted an inorganic growth strategy for entering new geographies and increasing their subscriber universe, consolidation in the cable TV space is expected to continue as MSOs look at further strengthening their market position in their respective geographies,” says ICRA Ratings SR GVP Subrata Ray.

    While the overall placement revenues are expected to remain buoyant, driven by new channel launches and the inclusion of tier II and tier III markets in audience measurement metrics; some correction on account of the change in the nature of content deals (net of placement revenues) with larger broadcasting networks is anticipated. While the subject of discontinuation of analog signals in Phase III markets remains under litigation, monetisation of the Phase III markets is expected to get deferred by nearly a year before the benefits of the healthy STB seeding, achieved in Phase III markets, start percolating.

    “In view of the potential delays in Phase III monetisation, ability of the MSOs to improve cost efficiencies and ARPUs from Phase I and Phase II markets remains crucial to support the profitability metrics in the current fiscal,” says Ray.

    During this transition phase, the cash accruals of MSOs are expected to improve gradually as incremental capex requirements are likely to remain low.

    “The capex outlay of MSOs over the medium term will be driven towards achieving higher broadband penetration in identified markets; investments in LCO management and improving penetration of value-added services such as HD channels and Video-on-Demand in digitised markets. In addition, replacement capex for STBs seeded in Phase I and Phase II markets will also drive the investment requirements of MSOs over the medium term,” adds Ray.

  • Delay in Phase III monetisation likely to disturb profitability of MSOs: ICRA

    Delay in Phase III monetisation likely to disturb profitability of MSOs: ICRA

    MUMBAI: In the cable TV space, in the current fiscal the revenue growth of multiple system operators (MSOs) will remain sensitive to regulatory changes, says ICRA. While lifting of stay orders and consequent discontinuation of analog signals in Phase III markets will remain a key subscription revenue growth driver, any extension with respect to Phase IV deadline (beyond December 31, 2016) will impact the activation revenues.

    With an estimated population of over 60 million households in Phase IV markets, cable TV players do not anticipate any extension in Phase IV deadline. However, the implementation is expected to be along the experience of Phase III, with analog signals being discontinued in a phased manner. Of the analog population in Phase III and Phase IV markets, residual analog subscriber base amongst the top three MSOs stood at ~9.5 million subscribers only (as on March 31, 2016), against a total analog population of over 6 0 million in the country, indicating healthy growth opportunities for DTH operators and regional MSOs. In this direction, DTH operators have introduced lower priced vanilla STBs and channel packages to tap the opportunity in Phase IV markets; however, DD Free Dish is also expected to emerge as a key player in Phase IV, given the price sensitive nature of subscribers.

    “Over the last few years, market leaders in the cable TV space have adopted an inorganic growth strategy for entering new geographies and increasing their subscriber universe, consolidation in the cable TV space is expected to continue as MSOs look at further strengthening their market position in their respective geographies,” says ICRA Ratings SR GVP Subrata Ray.

    While the overall placement revenues are expected to remain buoyant, driven by new channel launches and the inclusion of tier II and tier III markets in audience measurement metrics; some correction on account of the change in the nature of content deals (net of placement revenues) with larger broadcasting networks is anticipated. While the subject of discontinuation of analog signals in Phase III markets remains under litigation, monetisation of the Phase III markets is expected to get deferred by nearly a year before the benefits of the healthy STB seeding, achieved in Phase III markets, start percolating.

    “In view of the potential delays in Phase III monetisation, ability of the MSOs to improve cost efficiencies and ARPUs from Phase I and Phase II markets remains crucial to support the profitability metrics in the current fiscal,” says Ray.

    During this transition phase, the cash accruals of MSOs are expected to improve gradually as incremental capex requirements are likely to remain low.

    “The capex outlay of MSOs over the medium term will be driven towards achieving higher broadband penetration in identified markets; investments in LCO management and improving penetration of value-added services such as HD channels and Video-on-Demand in digitised markets. In addition, replacement capex for STBs seeded in Phase I and Phase II markets will also drive the investment requirements of MSOs over the medium term,” adds Ray.

  • ICRA upgrades Siti Cable’s long term rating to A-

    ICRA upgrades Siti Cable’s long term rating to A-

    MUMBAI:  Long term rating on term loans for Siti Cable Network Limited, an Essel Group Company, has been upgraded by credit rating agency ICRA. ICRA has upgraded the long-term rating of Siti Cable to [ICRA] A- from [ICRA] BBB+. Further ICRA has a [ICRA] AA (SO) outstanding rating on the term loan facility of Siti Cable. The outlook on the ratings is ‘stable’.

    Siti Cable ED and CEO V D Wadhwa said,“We welcome this upgrade in SITI Cable’s credit rating and thank ICRA for re-affirming SITI Cable’s growth story. Improvement in profitability, growth in Digital Subscriber base, continuous focus on operational excellence and promoter’s confidence in sustainable growth of the company, have all been the drivers for SITI Cable’s growth. SITI Cable has been at the forefront in offering great value to customers through video and broadband services.” 

    The rating upgrade takes into account the recent equity infusion from the promoter group (Rs. 530 crores in February 2016) and the improving operating performance of Siti Cable, which is expected to result in an improvement in the credit profile of the company. ICRA also noted that being an Essel Group entity, Siti Cable has been benefitting from regular financial support from the promoter group. The promoters had infused fresh funding in Q3-2016 (quarter ended 31 December 2015).

    While the transitioning of the cable TV system in India from analog to digital is underway, ICRA reinforced the belief that Siti Cable’s execution risk is mitigated by the management team’s extensive experience in various areas of the television and media industry. The rating also factors in Siti Cable’s `status as one of the largest multi system operators (MSOs) in India in terms of its cable universe of 1.22 crore subscribers as of December 201) and revenues Rs  905.9 crore in FY-2015 (year ended 31 March 2015) as well as the high growth potential of digital cable services in India.

    ICRA has also noted Siti Cable’s significant investments in consumer premise equipment towards conversion of analog subscribers to digital.

    Buoyed by DAS Phase III, Siti Cable achieved a financial turn-around for the first time by reporting Profit Before Tax of Rs 56 crore in Q3-2016.

  • ICRA upgrades Siti Cable’s long term rating to A-

    ICRA upgrades Siti Cable’s long term rating to A-

    MUMBAI:  Long term rating on term loans for Siti Cable Network Limited, an Essel Group Company, has been upgraded by credit rating agency ICRA. ICRA has upgraded the long-term rating of Siti Cable to [ICRA] A- from [ICRA] BBB+. Further ICRA has a [ICRA] AA (SO) outstanding rating on the term loan facility of Siti Cable. The outlook on the ratings is ‘stable’.

    Siti Cable ED and CEO V D Wadhwa said,“We welcome this upgrade in SITI Cable’s credit rating and thank ICRA for re-affirming SITI Cable’s growth story. Improvement in profitability, growth in Digital Subscriber base, continuous focus on operational excellence and promoter’s confidence in sustainable growth of the company, have all been the drivers for SITI Cable’s growth. SITI Cable has been at the forefront in offering great value to customers through video and broadband services.” 

    The rating upgrade takes into account the recent equity infusion from the promoter group (Rs. 530 crores in February 2016) and the improving operating performance of Siti Cable, which is expected to result in an improvement in the credit profile of the company. ICRA also noted that being an Essel Group entity, Siti Cable has been benefitting from regular financial support from the promoter group. The promoters had infused fresh funding in Q3-2016 (quarter ended 31 December 2015).

    While the transitioning of the cable TV system in India from analog to digital is underway, ICRA reinforced the belief that Siti Cable’s execution risk is mitigated by the management team’s extensive experience in various areas of the television and media industry. The rating also factors in Siti Cable’s `status as one of the largest multi system operators (MSOs) in India in terms of its cable universe of 1.22 crore subscribers as of December 201) and revenues Rs  905.9 crore in FY-2015 (year ended 31 March 2015) as well as the high growth potential of digital cable services in India.

    ICRA has also noted Siti Cable’s significant investments in consumer premise equipment towards conversion of analog subscribers to digital.

    Buoyed by DAS Phase III, Siti Cable achieved a financial turn-around for the first time by reporting Profit Before Tax of Rs 56 crore in Q3-2016.