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Tag: Mukesh Dhirbhai Ambani

  • Hathway profits up on lower revenue in second quarter

    Hathway profits up on lower revenue in second quarter

    BENGALURU: The Mukesh Dhirubhai Ambani controlled MSO and broadband internet services provider Hathway Cable and Datacom Limited (Hathway) reported consolidated profit after tax (PAT) at Rs 52.33 crore for the quarter ended 30 September 2020 (Q2 2021, quarter or period under review) against loss of Rs 2.42 crore for the corresponding year-ago quarter Q2 2020 (y-o-y). PAT for the period under review was 20.8 percent lower quarter-on-quarter (q-o-q) than the Rs 66.06 crore the company had posted for the immediate trailing quarter Q1 2021. However, consolidated operating EBDITA for the period under review at Rs 120.39 crore (27.9 percent of operating revenue) grew 14.7 percent y-o-y from Rs 105.71 crore (23.8 percent of operating revenue) and was also 1.9 percent higher q-o-q than the Rs 118.18 crore (28.2 percent of operating revenue) in Q1 2021.

    Hathway’s consolidated operating revenue fell 2.5 percent y-o-y in Q2 2021 to Rs 431.24 crore from Rs 442.11 crore in Q2 2020, but was 2.8 percent higher q-o-q than Rs 419.56 crore. Consolidated total income (total revenue) during the quarter fell 9.8 percent y-o-y to Rs 460.66 crore from Rs 510.77 crore, and was 5.6 percent lower q-o-q than Rs 488.22 crore.

    Broadband and CATV segment numbers for Q2 2021

    Hathway has two major segments – broadband internet services (BB) and cable television or CATV.

    BB segment saw operating revenue increase 10 percent y-o-y in Q2 2021 to Rs 153.34 crore from Rs 139.36 crore in the corresponding year ago quarter and grew 4.7 percent q-o-q from Rs 146.51 crore in Q1 2021. The segment’s operating result (operating profit) in Q1 2021 was Rs 6.68 crore as compared to an operating loss of Rs 25.10 crore in Q1 2020, but was 14.8 percent lower than the operating profit of Rs 7.84 crore in Q1 2021.

    CATV segment revenue declined 8.2 percent y-o-y in Q2 2021 to Rs 277.90 crore from Rs 302.75 crore in Q2 2020, but was 1.8 percent more q-o-q than the Rs 273.05 crore for Q1 2021 The segment reported more than two-fold increase in operating result (operating profit) – which grew 116 percent y-o-y in Q2 2021 to Rs 21.32 crore from Rs 9.87 crore in Q2 2020 and was 25 percent higher q-o-q than Rs 17.06 crore in the immediate trailing quarter/

    Let us look at the other numbers reported Hathway for Q2 2021

    All numbers in this report are consolidated unless stated otherwise.

    Total expenditure in Q2 2021 declined 19.9 percent y-o-y to Rs 407.90 crore from Rs 509.50 crore in the corresponding period of the previous year and was 4.7 percent lower q-o-q than Rs 427.92 crore in Q1 2021.

    Pay channel cost during the quarter under review declined 4.4 percent y-o-y to Rs 132.46 crore from Rs 138.55 crore, but was almost flat (up 0.2 percent) q-o-q as compared to Rs 132.18 crore for Q1 2021. Employee cost in Q2 2021 declined 3.6 percent y-o-y to 24.44 crore from Rs 25.36 crore, but was 0.6 percent higher q-o-q than Rs 24.30 crore in Q2 2020. Operational expenses in Q2 2021 grew 19.8 percent y-o-y to Rs 81.65 crore from Rs 68.18 crore and were 5.1 percent more q-o-q than Rs 77.67 crore in Q1 2021.

    Finance cost was less than one-twelfth (declined 91.8 percent) y-o-y to Rs 4.27 crore from Rs 51.87 crore in the corresponding quarter of last year and was a little more than one-eighth (declined 87 percent) than the Rs 32.96 crore in Q1 2021. Other expenses in Q2 2021 declined 31.5 percent y-o-y to Rs 72.30 crore from Rs 105.01, but were 7.5 percent higher q-o-q than the Rs 67.23 crore in Q1 2021.

  • Cable business drives Hathway’s return to profitability

    Cable business drives Hathway’s return to profitability

    BENGALURU: Mukesh Ambani’s Reliance Industries Limited-owned Indian multi-system operator and internet services provider Hathway Cable and Datacom Limited (Hathway) reported consolidated profit after tax (PAT) of Rs 105.47 crore for the year ended 31 March 2020 (FY 2020, year under review) as compared to a loss of Rs 187.67 crore for FY 2019. The company’s cable division reported a consolidated operating profit of Rs 84.77 crore and operating revenue of Rs 1,230.71 crore as compared to a consolidated operating loss of Rs 457.46 crore on operating revenue of Rs 1,030.66 crore in FY 2019. Cable business revenue for the year under review grew 19.4 per cent as compared to FY 2019.

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    The other business of Hathway – broadband internet services saw operating revenue grow 7.6 per cent in FY 2020 to Rs 567.59 crore from Rs 527.63 crore in the previous year. The internet services business incurred an operating loss of Rs 20.54 crore in FY 2020 as compared to an operating profit of Rs 42.01 crore in FT 2019.

    Hathway’s consolidated operating revenue in FY 2020 grew 15.4 per cent to Rs 1,798.39 crore from Rs 1,558.29 crore in FY 2019. Consolidated total income for the year grew 26.2 per cent to Rs 2044.14 crore from Rs 1,619.20 crore in the previous year.

    For the quarter ended 31 March 2020 (Q4 2020, quarter under review), Hathway reported consolidated operating revenue of Rs 455.68 crore, which was 19.6 per cent more than the Rs 381.04 crore in the corresponding quarter of the previous year Q4 2019 (Y-o-Y). Consolidated PAT for the quarter under review grew more than sevenfold (up 642.5 per cent) in Q4 2020 Y-o-Y to Rs 49.08 crore from Rs 6.61 crore.

    Cable business operating revenue for Q4 2020 increased 22.4 per cent to Rs 304.36 crore Y-o-Y from Rs 248.61 crore. Hathway reported operating profit of Rs 39.04 crore as compared to an operating loss of Rs 333.89 crore for Q4 2019. Internet services business revenue for the quarter under review grew 14.3 per cent Y-o-Y to Rs 151.32 crore from Rs 132.43 crore. Internet services business saw an operating profit of Rs 1.24 crore in Q4 2020 as compared to an operating loss of Rs 18.11 crore in Q4 2019.

    Let us look at the other numbers reported by the company

    All numbers in this report are consolidated unless stated otherwise.

    Total expenditure in FY 2020 grew 7.6 per cent to Rs 1,960.53 crore from Rs 1,822.72 crore in the previous year. Pay channel cost during the year under review declined 8.1 per cent to Rs 560.56 crore from Rs 609.85 crore. Employee cost in FY 2020 grew 14.4 per cent to Rs 94.79 crore from Rs 82.86 crore. Other operational expenses in FY 2020 grew 21.1 per cent to Rs 306.62 crore from Rs 253.30 crore. Finance cost grew 2.5 per cent to Rs 226.37 crore from Rs 220.80 crore. Other expenses in FY 2020 grew 32.2 per cent to Rs 401.09 crore from Rs 303.50.

    Total expenditure in Q4 2020 grew 5.2 per cent Y-o-Y to Rs 458.53 crore from Rs 435.97 crore. Pay channel cost during the period under review increased 16.25 per cent Y-o-Y to Rs 152.70 crore from Rs 131.41 crore. Employee cost in Q4 2020 reduced 3.1 per cent Y-o-Y to Rs 21.53 crore from Rs 22.22 crore. Other operational expenses in Q4 2020 grew 20.4 per cent Y-o-Y to Rs 79.72 crore from Rs 66/23 crore. Finance cost declined 22.1 per cent Y-o-Y to Rs 43.13 crore from Rs 55.38 crore. Other expenses in Q4 2020 grew 5.5 per cent Y-o-Y to Rs 81.70 crore from Rs 77.45 crore.

  • Jio juggernaut marches on with 62 percent bottomline growth in Q3 2020

    Jio juggernaut marches on with 62 percent bottomline growth in Q3 2020

    BENGALURU: Mukesh Dhirbhai Ambani’s largest start up in the world, Reliance Jio Infocomm Limited (Jio) reported 62.5 percent growth in standalone profit after tax (PAT) for the period ended 31 December 2019 (Q3 2020, period or quarter under review) as compared to the corresponding year ago quarter Q3 2019 (y-o-y). The company reported standalone PAT of Rs 1,350 crore for Q3 2020 as compared to Rs 831 crore for Q3 2019. The company’s standalone EBIDTA (including other income) expanded 38.2 percent y-o-y to Rs 5,601 crore in Q3 2020 from Rs 4,053 crore. Jio says that it became a net recipient of access charges within 2 months of implementation of IUC tariffs, with outgoing traffic in overall offnet traffic reducing to 48 percent by end of quarter.

    Further, the company’s standalone revenue from operations for the period under review grew 28.2 percent y-o-y to Rs 13,968 crore from Rs 10,884 crore in Q3 2019. Total income in Q3 2020 grew 28.5 percent y-o-y to Rs 13,986 crore from Rs 10,885 crore.

    Jio reported a subscriber base of 37 crore as on 31 December 2019. Gross subscriber additions were 3.71 crore with a net subscriber addition of 1.48 crore during Q3 2020. The company says that the 2.2 crore subscribers that were lost were primarily excessively heavy voice users, and exited owing to implementation of IUC tariffs due to regulatory uncertainty. ARPU during the quarter was Rs 128.4 per subscriber per month Jio says that customer engagement continues to be robust with average data consumption per user per month of 11.1 GB and average voice consumption of 760 minutes per user per month.

    Let us look at the other expenses reported by Jio

    Amongst the major expenses incurred by Jio in Q3 2020 were network operating expenses, access charges, license fees and spectrum charges and net finance costs.

    Jio’s standalone network operating expenses increased 38.7 percent y-o-y in Q3 2020 to Rs 4,423 crore from Rs 3,190 crore in the corresponding year ago quarter.  Standalone access charges reduced 4.2 percent y-o-y during the period under review to Rs 1,442 crore from Rs 1,506 crore in Q3 2019. Standalone license fees and spectrum charges increased 30.5 percent y-o-y during the quarter to Rs 1,483 crore from Rs 1,136 crore. Standalone net finance costs in Q3 2020 increased 79 percent y-o-y to Rs 1,953 crore from Rs 1,091 crore in Q3 2019.

    Standalone employee benefit expense in Q3 2020 declined 26.3 percent y-o-y to Rs 314 crore from Rs 426 crore. Standalone selling and distribution expense in Q3 2020 increased 20.3 percent y-o-y to Rs 356 crore from Rs 296 crore. Standalone other expenses in the period increased 32 percent y-o-y to Rs 367 crore from Rs 278 crore.

    Company speak

    Reliance Industries Limited (RIL) chairman and managing director Ambani said; “Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. We are delivering on our promise to be the driver of digital revolution in the country. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital content and services. To drive the next leg of growth, a truly transformational and disruptive digital services company has been set-up which will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities, for creating a truly Digital Society for each Indian.”

    Jio Platforms Limited

    Jio says in an earnings release that Jio Platforms Limited will hold all digital platforms including the connectivity platform i.e. Reliance Jio Infocomm Limited. Total capitalisation of Jio Platforms Limited is Rs 1,70,000 crore. The release says that the capital and organisation structure of Jio Platforms Limited has been benchmarked with global technology players.

    The Jio release also states that it has been developing and fostering a vibrant digital ecosystem through various digital applications, tools and platforms spanning self-care, information, entertainment, chat, utility tools etc. The release further states that Jio continues to focus on technology enabled emerging digital platforms that enable and accelerate digital society – healthcare, education, agriculture, commerce, gaming, government to citizen services, and many more. The company says that the platforms are also backed by investment in next-gen technologies like blockchain, AI/ ML, AR/ MR, edge computing.

  • Cable TV subscription drives Hathway revenue growth in Q1 FY 2020

    Cable TV subscription drives Hathway revenue growth in Q1 FY 2020

    BENAGLURU: Hathway Cable and Datacom Ltd (Hathway) reported 38 percent growth in subscription revenue from its cable TV business (CATV) for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q1 2019. CATV subscription revenue for Q1 2020 grew 28 percent as compared to the immediate trailing quarter Q4 2019 (q-o-q). CATV subscription revenues for the period under review, the corresponding year ago quarter and the immediate trailing quarter were Rs 216.7 crore, Rs 157.4 crore and Rs 169.9 crore respectively.

    Placement revenue in Q1 2020 grew 5 percent y-o-y to Rs 78.7 crore from 75.2 crore and grew 35 percent q-o-q from Rs 58.2 crore. Activation revenue declined 13 percent y-o-y to Rs 15.3 crore from Rs 17.6 crore and declined 3 percent q-o-q from Rs 15.7 crore. The split of placement and activation revenues for iCATV and Broadband business has not  been mentioned.

    Overall, CATV business revenue in Q1 2020 grew 24 percent y-o-y to Rs 315.97 crore from Rs 254.91 crore and grew 27.1 percent q-o-q from Rs 248.51 crore. The company reported an operating profit (segment result) of Rs 2.82 crore from CATV business for Q1 2020 as compared to an operating loss of Rs 31.16 crore in Q1 2019 and an operating loss of Rs 333.89 crore for Q4 2019. The high losses for Q4 2019 were due to exceptional items to the extent of Rs 410.74 that included impairment of trade receivables, advances and exposure to certain entities including joint ventures, write down to property plants and equipment and expenses relating to equity infusion. The exceptional items for Q4 2019 were a one time expense and had non-routine material impact on financial statements says the company. Q1 2020 is the first full quarter after the implementation of Telecom Regulatory Authority of India (TRAI) New Tariff Order.

    Comparatively, the broadband business revenue of the country’s now fourth largest wired broadband internet services provider grew 3.1 percent y-o-y and 1 percent q-o-q. Hathway reported Rs 133.81 crore, Rs 129.8 crore and Rs 132.43 crore as broadband revenue for Q1 2020, Q1 2019 and Q4 2019 respectively. Hathway reported less than half the operating profit (segment result) from its Broadband business at Rs 9.14 crore for Q1 2020 as compared to an operating profit of Rs 19.89 crore for Q1 2019. The company had reported an operating loss of Rs 18.11 crore for the immediate trailing quarter from its broadband business.

    The company says that it has deployed 60 lakh (6 million, 0.06 crore) set top boxes and claims 8.4 lakh (0.84 million, 0.084 crore) broadband internet subscriber base at the end of the quarter under review in an investor presentation. Comparative broadband subscribers for Q1 2019 and Q4 2019 were 7.7 lakh (0.77 million, 0.077 crore) and 8.1 lakh (0.81 million, 0.081 crore) respectively. While data consumption per user has gone up, broadband ARPU has declined in Q1 2020 to Rs 650 in Q1 2020 from Rs 690 in Q1 2019 and from Rs 662 in Q4 2019. It says further that FTTH markets will be leading growth in customer acquisition and that its focus will be on doubling net additions momentum Q2 2020 onward.

    Let us look at the other numbers reported by the company

    All numbers in this report are consolidated unless stated otherwise.

    Hathway’s total operating revenue for Q1 2020 grew 16.9 percent y-o-y to Rs 449.78 crore from Rs 384.71 crore and grew 18 percent q-o-q from Rs 381.04 crore. Total income or revenue for Q1 2020 grew 29.2 percent y-o-y to Rs 506.68 crore from Rs 392.18 crore and grew 20 percent q-o-q from Rs 422.10 crore. The company reported a loss of Rs 9.38 crore for Q1 2020 as compared to a loss of Rs 51.72 crore for Q1 2019 and profit after taxes (PAT) of Rs 6.61 crore in Q4 2019.

    The company reported EBITDA growth of 15 percent y-o-y in its investor presentation for Q1 2020 to Rs 104.38 crore (23.2 percent margin) from Rs 90.5 crore (23.5 percent margin) and growth of 37 percent q-o-q from Rs 76.1 crore (20 percent margin). Simple EBITDA calculated from the company’s numbers reported to the bourses was Rs 93.14 crore (20.7 percent margin) for Q1 2020 which was 30.6 percent higher y-o-y than Rs 71.32 crore (18.5 percent margin) reported for Q1 2019 and was 11.2 percent more than the Rs 83.73 crore (22 percent margin) for Q4 2019.

    Total expenditure in Q1 2020 grew 16.1 percent y-o-y  to Rs 519.61 crore from Rs 447.52 crore and grew 19.2 percent from Rs 435.97 crore.

    Pay channel cost during the period under review declined 15.5 percent y-o-y to Rs 130.06 crore from Rs 153.88 crore and declined 1 percent q-o-q from Rs 131.41 crore. Employee cost in Q1 2020 grew 15.6 percent y-o-y to Rs 23.63 crore from Rs 20.45 crore and grew 6.3 percent q-o-q from Rs 22.22 crore. Operational cost in Q1 2020 grew 29.6 percent y-o-y to Rs 77.13 crore from Rs 59.51 crore and grew 16.5 percent q-o-q from Rs 66.23 crore. Finance cost grew 58.7 percent y-o-y to Rs 81.79 crore from Rs 51.53 crore and grew 47.7 percent q-o-q from Rs 83.28 crore. Other expenses in Q1 2020 grew 58.2 percent y-o-y to Rs 125.82 crore from Rs 79.55 crore and grew 62.5 percent q-o-q from Rs 77.45 crore.