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Tag: Multi-system operator (MSO)

  • AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    KOLKATA:  The West Bengal based multi-system operator (MSO), Advance Multisystem Broadband Communication (AMBC), is aiming to install 1.6 lakh set top boxes (STBs) by December 2016.

    AMBC claims to be the first private limited company in cable industry that is still run by a professional management team built by cable operators only. Launched in 2000, the company has more than 450 LCOs affiliated with it at present. AMBC in the Kolkata municipal area (KMA) claims to have more than 1.83 lakh digital connections.
     
    The company has one digital headend, which caters to the Kolkata municipal area and three analogue headends. The analogue headends at Arambag and Birbhum were to be converted into digital ones with the implementation of DAS in analogue areas. The company had earlier earmarked Rs 5 crore for converting the analogue headends into digital ones, but now the company has ‘withdrawn the signal’ from some non-potential areas.
     
    In the DAS areas, AMBC has seeded STBs in Hooghly, Howrah, Nadia, Salt Lake and North 24 Parganas among others, while in locations like Burdwan, Birbhum and parts of Bankura, it has more than 2.5 lakh analogue cable TV connections.
     
    “We were preparing to seed STBs in phase III and IV, and are encouraging the LCOs to do as much as they can, but RIO arrangement of SIPL is becoming a major drawback,” said AMBC managing director Sujit Das.
     
    Das informed that the company had already accounted for stock and trade interest rate due to postponement of digitisation deadlines when his company had taken loans to procure STBs’.
     
    “We are looking for some loops in KMA,” revealed Das. “Actually we are trying to saturate our core market with topmost priority. A set back after making a new venture in a new market may spoil our name and deflect our target,” he shared.
     
     Speaking about the challenges in cable TV digitisation, Das said, “As the market is still directed mostly by the LCOs, we need to have their confidence first, and then the job will become easier. A confused ground partner can be harmful for the operation. We need to work with cooperation with the LCOs, not with compulsion.”
     
     “Value chain is also a big factor. For the remaining phases we need to start by breaking even,” he said.  “Only a la carte channels offer will not be feasible enough as LCOs have to bear high cost to carry the channels.”
     
    Das feels that the experiment of digitisation will be over before the next phase starts and the market will be mature enough to work with. “So we may reduce our capex loss in seeding of STBs and operational cost as well. In phase 1and 2 we all were riding on the tiger’s back.”
     
    When being asked to comment on the phase III and phase IV of DAS, he said the locations where the company has analogue presence are price sensitive market and the monthly subscription fee hovers around Rs 100-Rs 110. “Keeping in mind the price sensitive market, we might do various permutations and combinations while providing the channel package to consumers in DAS 4 areas. A price hike in small towns and rural Bengal will slow down STBs seeding,” he added.
     
     
    Ground networking and channel placing are major factors for acceptance of a signal to the consumers. AMBC also works with the best channel sequence, which is reviewed from time to time depending upon the feedback from the ground, Das informed.
     
    AMBC says that it gets immense support from its LCOs’ to deliver quality service and technical support to meet consumer demands.

     

  • Hathway gets EGM nod for Rs 300.80 crore Capital Partners investment

    Hathway gets EGM nod for Rs 300.80 crore Capital Partners investment

    MUMBAI: Multi system operator (MSO) Hathway Cable & Datacom has got shareholder approval for raising Rs 300.80 crore through preferential allotment of shares. The announcement was made after the MSO’s Extra Ordinary General Meeting held today.

     

    The MSO through a statement on the BSE, said, ‘subject to necessary approvals and compliance with the applicable laws and regulations, the issuance of up to 94,00,000 fully paid up equity shares of face value Rs 10 each (the Equity Shares) of the company to the following funds managed by Capital Research  & Management, at a price of Rs 320 per equity share, aggregating to Rs 300,80,00,000 by way of preferential allotment pursuant to Section 42  and 62 (1) ( c) and all other applicable provisions, if any of the Companies Act, 2013  and rules made thereunder (including any statutory modification) thereof for the time being in force) and other legal provision, including but not limited to chapter 7 of the Securities and Exchange Board of India (SEBI) (issue of capital and disclosure requirements) regulations, 2009, as amended.’

     

    While Capital Partners’ Smallcap World Fund will mop up 70,50,000 shares of Hathway at a tab of Rs 225,60,00,000, American Fund Insurance Series- Global Small Capitalisation Fund will pocket 23,50,000 shares, at a cost of Rs 75,20,00,000.

     

    It was on 7 August that Hathway had got board approval for its fund raising,  which was then subject to shareholder approval. The MSO has now crossed one more hurdle towards raising the Rs 300.80 crores. Now what’s left is ensuring compliance with laws and regulations and getting the necessary regulatory approvals.

     

    According to Media Partners Asia, the deal values Hathway at Rs 51.6 billion and will dilute the MSO’s promoter and promoter group companies (the Rahejas) holding from 47.5 per cent currently to 44.7 per cent.

  • Hathway reports lower income, lower loss for Q1-2015

    Hathway reports lower income, lower loss for Q1-2015

    BENGALURU:  The multi system operator (MSO), Hathway Cable and Datacom (Hathway), reported a 14.5 per cent drop in standalone operating income to Rs 250.22 crore in Q1-2015 as compared to the Rs 292.72 crore in Q4-2014, but 7.6 per cent more than the Rs 232.65 crore in Q1-2014.

     

    The company has been reporting loss for the past few quarters. In Q1-2015, Hathway reported loss of Rs 0.93 crore as compared to a loss of Rs 42.27 crore in Q4-2014 and a profit after tax of Rs 5.32 crore in Q1-2014.

     

    Based on the figures submitted by Hathway, the company’s EBIDTA in Q1-2015 works out to Rs 43.87 crore (17.5 per cent of TIO). Comparative figures for Q4-2014 are Rs 40.70 crore (13.9 per cent of TIO) and Rs 76.09 crore (32.7 per cent of TIO).

     

    Let us look at the other Q1-2015 numbers reported by Hathway

     

    Total expense in Q1-2015 at Rs 254.10 crore (107.1 per cent of TIO) was 19 per cent lower than the Rs 313.53 crore in Q4-2014 (107.1 per cent of IO) in Q4-2014 and 28.3 per cent more than the Rs 198.1 crore in Q1-2014.

     

    Hathway’s pay channel cost at Rs 85.81 crore (34.3 per cent of TIO) in Q1-2015 was 25.7 per cent lower than the Rs 115.41 crore (39.4 per cent of TIO) in Q4-2014 and 46.8 per cent more than the Rs 58.45 crore (17.9 per cent of TIO) in Q1-2014.

     

    Hathway reported other income of Rs 2.05 crore in Q1-2015; Rs 2.54 crore in Q4-2014 and Rs 0.95 crore in Q1-2014. The company reported forex gain of Rs 1.58 crore in Q1-2015; forex gain of Rs 4.71 crore in Q4-2014 and a forex loss of Rs 8.32 crore in Q1-2014.

     

    The company’s finance costs have gone up in Q1-2015, both in terms of actual amounts and in terms of percentage of TIO. In Q1-2015, finance cost at Rs 29.17 crore (11.7 per cent of TIO) was 18 per cent more than the Rs 24.71 crore (8.4 per cent of TIO) in Q4-2014 and 34.9 per cent more than the Rs 21.61 crore (9.3 per cent of TIO) in Q1-2014.

     

    Once the company’s finance costs were accounted for, its loss would have been wider in Q1-2015, but for a change in accounting practices, which after providing for doubtful advances/investments/receivables from entities under control/ significant control have resulted in exceptional item of Rs 28.87 crore and reduced the loss accordingly.

     

    As mentioned in our report last week, Hathway got board approval to raise Rs 300.80 crore through a preferential allotment to two foreign institutional investors – the SmallCapWorld Fund (SWF) and American Funds Insurance Series. While it is proposing to allot  70,50,000 shares to SmallCapWorld Fund, American Funds Insurance is expected to mop up 23,50,000 equity shares.

     

  • Hathway FY-2014 Operating Income up 40 per cent; reports loss of Rs 141 crore

    Hathway FY-2014 Operating Income up 40 per cent; reports loss of Rs 141 crore

    BENGALURU: Indian Multi System Operator (MSO) Hathway Cable & Datacom Limited (Hathway) reported a jump of 39.8 per cent in consolidated net Total Operating Income (Op Inc) to Rs 1583.25 crore in FY-2014 as compared to the Rs 1132.52 crore in FY-2013. The company reported a loss of Rs 140.69 crore in the current year as opposed to a PAT of Rs 37.59 crore in the previous fiscal.

     

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

     

    (2) Annual figures are on a consolidated basis.

     

    The company’s Operating EBIDTA (without other income) in FY-2014 at Rs 309.8 crore (19.57 per cent of Tot Inc) was 13.1 per cent more than the Rs 273.84 crore (24.3 per cent of Op Inc) in FY-2013. Operating EBIDTA in Q4-2014 at Rs 40.70 crore (13.9 per cent of Op Inc) was 10.8 per cent more than the Rs 36.74 crore (15.65 per cent of Op Inc) in Q3-2014 but less than half (46 per cent) of the year ago quarter’s EBIDTA of Rs 88.48 crore (38.3 per cent of Op Inc).

     

    For Q4-2014, Hathway reported Op Inc of Rs 292.72 crore which was 24.7 per cent higher than the Rs 234.78 crore in the quarter ended 31 December 2013 and 26.6 per cent lower than the Rs 231.18 crore in the year ago quarter Q4-2013.

     

    Let us look at the other FY-2014 and Q4-2014 numbers reported by Hathway.

     

    Hathway reported consolidated Total expense (Tot Exp) in FY-2014 at Rs 1572.75 crore (99.3 per cent of Op Inc), 53.5 per cent higher than FY-2013 Tot Exp of Rs 1024.74 crore (90.5 per cent of Op Inc). Q4-2014 Tot Exp at Rs 313.53 crore (107.1 per cent of Op Inc) was 23.4 per cent more than the Rs 254.03 crore (108.2 per cent of Op Inc) in Q3-2014 and 67.8 per cent more than the Rs 186.89 crore (80.8 per cent of Op Inc) in Q4-2013.

     

    A major expense for Hathway is Pay Channel Cost. The company paid Rs 666.42 crore (42.1 per cent of Op Inc) in FY-2014 towards this head, which was 54.1 per cent more than the Rs 432.51 crore (38.19 per cent of Op Inc) in FY-2013. Hathway paid Rs 115.41 crore (39.4 per cent of Op Inc) in Q4-2014 towards pay channel cost, which was 37.85 per cent more than the Rs 83.72 crore (35.7 per cent of Op Inc) in the immediate trailing quarter and more than double (2.33 times) the Rs 49.50 crore (21.41 per cent of Op Inc) in Q4-2013.

     

    Hathway’s Stock-in-trade purchase (Stock Pur) more than doubled in FY-2014 (went up by 2.23 times) to Rs 13.85 crore (0.87 per cent of Op Inc) from Rs 6.20 crore (0.55 per cent of Op Inc) in FY-2013. Stock Pur in Q4-2014 at Rs 10.25 crore (3.5 per cent of Op Inc) was more than 8 times (8.36 times) the Rs 1.23 crore (0.52 per cent of Op Inc) in Q3-2014 and 6.28 times the Rs 1.63 crore (0.71 per cent of Op Inc) in Q4-2013.

     

    The company’s results during the quarters were: Q4-2014 – Loss of Rs 49.27 crore; Q3-2014 – loss of Rs 36.86 crore: Q4-2013 – PAT of Rs 28.27 crore.

  • Siti Cable gets Rs 140.25 crore investment from promoters

    Siti Cable gets Rs 140.25 crore investment from promoters

    MUMBAI: After getting a shot of Rs 102.75 crore last week, multi system operator (MSO) Siti Cable has now finally received the third and last tranche that its promoters had intended to release.  In an announcement to the Bombay Stock Exchange (BSE), the MSO has said that it has received Rs 140.25 crore today. Within a span of a week, Rs 243 crore has been invested in all.

     

    The release on the BSE reads: “As per the terms of 16,20,00,000 warrants issued by the company on 19 March 2013 on preferential basis, the allotment committee of the board of directors has upon receipt of balance of  75 per cent consideration aggregating to Rs 140,25,00,000 approved further allotment of 9,35,00,000 equity shares upon conversion of such remaining warrants at an issue price of Rs 20 per share to the allottees: Essel Media Ventures and Essel International.”

     

    It was in March 2013 that the company got the nod for getting Rs 324 crore, out of which Rs 81 crore flowed in that month itself. Even though, the promoters had time till September 2014 to flush out the rest, the decision to invest it all was taken recently. Following which, the next two tranches have been released for the MSO.

     

    With this, the total promoter shareholding has risen to 72.82 per cent.

     

    Not only this, the MSO also claims to have reached a subscriber base of 40 lakh digital customers as on 31 March 2014. “Encouraged by the significant improvement in the performance in FY 13-14 and to support the aggressive growth plan to grow the subscriber base to 1 crore  in FY 14-15, the promoters have invested additional Rs 243 crore in the business,” the MSO said in a release sent today.

     

    The funds will be utilised primarily for business expansion and to partially reduce debt.

     

    Essel Group and Zee chairman Subhash Chandra through a statement said, “The Indian television distribution industry is on the cusp of high growth value phase as it marches towards the digitisation of balance phases of cable television in the country. With the change in leadership last year, Siti Cable has driven higher revenue and profitability through relentless focus on operational excellence despite uncertain environment. Our sustained investment in this sector will further accelerate the growth momentum and will serve the digital cable TV viewing needs of many more million Indians on Siti Cable Network.”

     

    Commenting on this development, Siti Cable CEO VD Wadhwa said, “For the wider digitisation roll out, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. We plan to seed over six million set-top-boxes in phase III and IV markets through organic and in organic growth. We believe that we are well poised to benefit from the ongoing digitisation implementation and ready to penetrate the market at a faster rate.”

     

    Package wise billing and collection has already been initiated in the phase I. The company estimates that by beginning of the next quarter, package wise billing and collection will be in line. The MSO claims to have made significant progress on subscriber wise billing and collections in its phase-II markets as well. “The company is far ahead of other operators in terms of subscriber wise billing and collection,” said a statement released by the company.

  • Hathway launches 151 SD and 4 HD channels

    Hathway launches 151 SD and 4 HD channels

    MUMBAI: Hathway Cable & Datacom is doing all that is needed to enhance consumer experience. The multi system operator (MSO) has announced the launch of 151 additional Standard Definition (SD) channels and four new High Definition (HD) channels to their existing cable TV distribution network in Bengaluru and Mysore.

     

    With this, the number of channels now offered by Hathway is 442 including 31 HD channels. “Hathway now has the largest bouquet of SD and HD channels in Bengaluru and Mysore and covers the entire spectrum of south Indian channels (both paid and free to air),” says the statement released by the MSO.

     

    The MSO in order to enhance the regional flavour now also has a line-up of Kannada channels.  “We are the only MSO in Bengaluru to offer key regional TV channels in HD and now have 31 HD channels, which is the largest HD portfolio in Bengaluru,” reveals the release.   

     

    That apart, Hathway has also introduced its new HD digital set top box, which will deliver high quality HD video with Dolby Sound technology thereby enhancing the television viewing experience for its subscribers in Bengaluru and Mysore.

     

     “This is the single largest channel expansion in the country; more than 150 additional TV channel expansion at one go is unprecedented in India,” said Hathway Cable & Datacom MD & CEO Jagdish Kumar.  

     

    “We are the largest provider of digital TV services in Bengaluru and Mysore, thanks to the quality of our services and now with this channel expansion, we are in a position to cater to the diverse viewership demands of our subscribers in Bengaluru and Mysore,” he added.  

     

     This channel offering will be available to Hathway subscribers in Bengaluru, Bengaluru Rural and Mysore. Hathway is expanding to other cities in Karnataka and has already started services in various cities of North Karnataka.

     

    With on-going digitisation of the Indian cable television industry, “Hathway is committed to bringing compelling content to its consumers in India.”

     

    The MSO has launched Hathway – CCC, Hathway Entertainment and Hathway Movies. In addition to these, it will soon launch many more channels covering genres like general entertainment, kids, music, regional movies, lifestyle and adventure.

  • Hathway Cable’s Jagdish Kumar Pillai resigns as director of JV Hathway Bhawani

    Hathway Cable’s Jagdish Kumar Pillai resigns as director of JV Hathway Bhawani

    MUMBAI: Mumbai-based multi-system operator (MSO) Hathway Bhawani Cabletel & Datacom has appointed Samson Jesudas as the company’s joint managing director.

     

    Also, Hathway Cable & Datacom CEO Jagdish Kumar Pillai has resigned as director of Hathway Bhawani. Hathway Cable & Datacom is a joint venture partner in Hathway Bhawani.

     

    “It is an operational decision. Bhawani is a small entity and with Jagdish being involved in a number of issues, this seemed the right decision,” says an official from Hathway Cable & Datacom.

     

    The changes will take place immediately. “The board has already approved it. Now we are inviting the stakeholders to approve the appointment of Jesudas as the joint managing director,” he adds.

     

    Jesudas has been appointed as the joint MD for a period of three years, till 2017. “Jesudas is an old hand and he seemed to be the right choice,” the Hathway official feels.