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Tag: Siti Cable Network Limited

  • 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.

  • Buoyed by performance, Siti Cable gets fresh promoter funding of Rs 530 crore

    Buoyed by performance, Siti Cable gets fresh promoter funding of Rs 530 crore

    NEW DELHI: Encouraged by the significant improvement in performance in Q3-FY16 when the company achieved financial turn-around for the first time by reporting Profit Before Tax of Rs 56 crore, the promoters of Siti Cable Network Limited have infused fresh funding amounting to Rs 530 crore.

    This forms the first tranche of the previously announced Rs 680 crore funding.

    As part of this Rs 530 crore capitalisation, Siti Cable board has allotted Rs 8.57 crore equity shares to promoter group entities. With this, the total promoter holdings in Siti Cable has now increased to ~69.8 per cent. 

    In addition, Rs 5.71 crore warrants and Rs 5.1 crore optionally fully convertible debentures (OFCD) were also issued to promoter group companies. This funding was recently approved at the company’s Extra-Ordinary General Meeting held in Mumbai on 4 February, 2016. These funds will be utilised primarily to reduce debt.

    Siti Cable currently has 12 million subscriber base, out of which 7.8 million are digital customers. Despite deferment of digitisation in various states, during the current quarter, the company has added one million digital customers.

    Speaking about this fresh fund infusion by promoter group entities, Siti Cable executive director and CEO V D Wadhwa said, “Promoter fund infusion of Rs 530 crore re-affirms Siti Cable’s growth story and our commitment to create sustainable value for all stake-holders. Continuous focus on operational excellence has led to Siti Cable achieving a financial turn-around in Q3FY16 for the first time in the history of the company.”

    “During the current unstable economic environment, this is a significant development in the industry wherein other players are looking to further divest their equity in the market, Siti Cable’s promoters have shown greater faith in the business and its growth potential by infusing funds at a premium to the current market price,” he added. 

    “We believe that the Indian television distribution industry is at the cusp of an important phase, where customer needs and demands will guide overall growth. At Siti Cable, we have already been taking huge strides to offer great value to customers and this fresh funding will go a long way in ensuring the same,” Wadhwa concluded.

  • Buoyed by performance, Siti Cable gets fresh promoter funding of Rs 530 crore

    Buoyed by performance, Siti Cable gets fresh promoter funding of Rs 530 crore

    NEW DELHI: Encouraged by the significant improvement in performance in Q3-FY16 when the company achieved financial turn-around for the first time by reporting Profit Before Tax of Rs 56 crore, the promoters of Siti Cable Network Limited have infused fresh funding amounting to Rs 530 crore.

    This forms the first tranche of the previously announced Rs 680 crore funding.

    As part of this Rs 530 crore capitalisation, Siti Cable board has allotted Rs 8.57 crore equity shares to promoter group entities. With this, the total promoter holdings in Siti Cable has now increased to ~69.8 per cent. 

    In addition, Rs 5.71 crore warrants and Rs 5.1 crore optionally fully convertible debentures (OFCD) were also issued to promoter group companies. This funding was recently approved at the company’s Extra-Ordinary General Meeting held in Mumbai on 4 February, 2016. These funds will be utilised primarily to reduce debt.

    Siti Cable currently has 12 million subscriber base, out of which 7.8 million are digital customers. Despite deferment of digitisation in various states, during the current quarter, the company has added one million digital customers.

    Speaking about this fresh fund infusion by promoter group entities, Siti Cable executive director and CEO V D Wadhwa said, “Promoter fund infusion of Rs 530 crore re-affirms Siti Cable’s growth story and our commitment to create sustainable value for all stake-holders. Continuous focus on operational excellence has led to Siti Cable achieving a financial turn-around in Q3FY16 for the first time in the history of the company.”

    “During the current unstable economic environment, this is a significant development in the industry wherein other players are looking to further divest their equity in the market, Siti Cable’s promoters have shown greater faith in the business and its growth potential by infusing funds at a premium to the current market price,” he added. 

    “We believe that the Indian television distribution industry is at the cusp of an important phase, where customer needs and demands will guide overall growth. At Siti Cable, we have already been taking huge strides to offer great value to customers and this fresh funding will go a long way in ensuring the same,” Wadhwa concluded.

  • FY-2015: Siti Cable’s revenue from cable up 31.4% at Rs 910 crore

    FY-2015: Siti Cable’s revenue from cable up 31.4% at Rs 910 crore

    BENGALURU: The Essel Group’s Subhash Chandra led Siti Cable Network Limited reported revenue of Rs 910.4 crore from its cable operations, up 31.4 per cent as compared to the Rs 693 crore in FY-2014. Cable business includes Subscription, Carriage, Activation and Advertisement revenue streams.

     

    The company reported subscription revenue of Rs 531 crore in FY-2015, which was up 56.4 per cent from Rs 339.5 crore in FY-2014. Last year Siti Cable had reported carriage revenue of Rs 227.1 crore. The company’s revenue from its broadband operations grew 53.3 per cent to Rs 26.5 crore in the current year as compared to the Rs 17.3 crore in the previous year.

     

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

     

    Siti Cable’s digital subscriptions increased 34.5 per cent to 53.8 lakh digital subscribers in FY-2015 as compared to the 40 lakh digital subscribers in FY-2014. Overall, the number of subscribers, both digital and analogue remained the same at 1.05 crores in FY-2015 as well as in the previous year. The company claims a broadband subscriber base of 70100 as compared to the 54000 subscribers in Q3-2015 and 48000 in Q2-2015.

     

    Siti Cable reported a 16 per cent higher loss in FY-2015 (year ended 31 March, 2015, current year) at Rs 109.1 crore as compared to the loss of Rs 94.06 crore in FY-2014. The company also reported higher loss in Q4-2015 at Rs 34.13 crore as compared to the Rs 20.86 crore in Q4-2014 and a loss of Rs 20.44 crore in the immediate trailing quarter.

     

    EBIDTA in FY-2015 at Rs 168.4 crore grew 33.8 per cent from Rs 125.9 crore in FY-2014. EBIDTA in Q4-2015 at Rs 32.1 crore was 15.1 per cent more than the Rs 27.9 crore in Q4-2014, but declined 35.9 per cent as compared to the Rs 50.1 crore in Q3-2015.

     

    Let us look at the other numbers reported by Siti Cable:

     

    Siti Cable’s Total Expenditure (TE) in FY-2015 at Rs 901.35 crore (99.5 per cent of Total Income from Operations or TIO) was 34.9 per cent more than the Rs 668.2 crore (95.8 per cent of TIO) in FY-2014. TE in Q4-2015 at Rs 280.49 crore (109.6 per cent of TIO) was 20.3 per cent more than the Rs 233.07 crore (99.9 per cent of TIO) in Q4-2015 and 32.2 per cent more than the Rs 212.11 crore (95.7 per cent of TIO) in Q5-2015.

     

    The company’s carriage sharing, pay channel and related costs (channel cost) in FY-2015 increased 53 per cent to Rs 510.82 crore (66.4 per cent of TIO) as compared to the Rs 333.95 crore (47.9 per cent of TIO) in FY-2014. Channel cost in Q4-2015 was 26.4 per cent higher at Rs 156.98 crore (61.3 per cent of TIO) as compared to the Rs 124.16 crore (53.2 per cent of TIO) in Q4-2014 and 41.3 per cent more than the Rs 111.07 crore (50.1 per cent ot TIO) in Q3-2015.

     

    Siti Cable’s finance cost in FY-2015 increased 1.5 per cent to Rs 120.88 crore (13.3 per cent of TIO) from Rs 119.11 crore (17.1 per cent of TIO) in Q5-2015. Finance costs in Q4-2015 at Rs 31.05 crore (12.1 per cent of TIO) was 0.6 per cent lower than the Rs 31.24 crore (13.4 per cent of TIO), but 3.9 per cent higher than the Rs 29.88 crore in Q3-2105.

     

    Other expenses in FY-2015 at Rs 204.25 crore (22.6 per cent of TIO) was 0.8 per cent more than the Rs 202.64 crore (29.1 per cent of TIO) in FY-2014. Other expense in Q4-2015 at Rs 72.53 crore (28.3 per cent of TIO) was 3.8 per cent lower than the Rs 75.39 crore (32.31 per cent of TIO), but was 44.7 per cent higher than the Rs 50.11 crore (22.6 per cent of TIO) in the immediate trailing quarter.

     

    “Our focus on monetization of existing business in phase 1 & 2 cities in FY15, led to a strong subscription revenue growth of 57 per cent y-o-y and operating EBITDA margin expansion by 491bps. Siti Cable is engaged in proactive seeding and well placed to benefit from the ongoing digitization process. We are looking to expand our broadband presence on DOCSIS Technology in our endeavour to diversify our revenue stream and provide the consumer with a compelling experience,” said Siti Cable executive director and CEO V D Wadhwa.

     

    Click here to read the investor release

     

    Click here to read the audited results

  • Q2-2105: Siti Cable reports higher income, higher subscription revenue, lower loss

    Q2-2105: Siti Cable reports higher income, higher subscription revenue, lower loss

    BENGALURU: Essel group’s Subhash Chandra led Siti Cable Network Limited (Siti Cable) reported a 4.9 per cent rise in Total Income from Operations (TIO) to Rs 212.25 crore in Q2-2015 from Rs 209.02 crore in Q1-2015 and 47.5 per cent more than the Rs 160.31 crore in Q2-2014. For HY-2015, TIO was 42.4 per cent more at Rs 428.27 crore than the Rs 300.76 crore in HY-2014.

     

    Siti Cable reported a 102.3 per cent y-o-y growth in subscription revenue to Rs 121.4 crore from Rs 60 crore and a 14.9 per cent q-o-q growth from Rs 105.7 crore in Q1-2015.

     

    Loss for Q2-2015 reduced to Rs 22.87 crore from Rs 31.67 crore in Q1-2015 and from 26.46 crore in Q2-2014. HY-2015 loss was also slightly lower at Rs 54.54 crore as compared to the Rs 55.23 crore in HY-2014.

     

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

     

    EBIDTA for Q2-2015 improved 26.2 per cent to Rs 45.8 crore (20.9 per cent of TIO) from Rs 36.3 crore (17.4 per cent of TIO) in Q1-2015 and also improved by 38.8 per cent from Rs 33 crore (20.6 per cent of TIO) in Q2-2014.

     

    Let us look at the other numbers reported by Siti Cable for Q2-2015

     

    Total expenditure (TE) for Q2-2015 at Rs 208.89 crore (95.3 per cent of TIO) was 2.5 per cent more than the Rs 203.76 crore (97.5 per cent of TIO) and 33.2 per cent more than the Rs 165.25 crore (100.04 per cent of TIO) in Q2-2014. HY-2015 TE at Rs 412.64 crore (96.4 per cent of TIO) was 40 per cent more than the Rs 294.77 crore (98 per cent of TIO) in HY-2014.

     

    Siti Cable’s carriage sharing pay channel and related costs (pay channel cost) in Q2-2015 at Rs 117.23 crore (53.5 per cent of TIO) was 6.6 per cent lower than the Rs 125.55 crore (60.1 per cent of TIO) in Q1-2015 and 81.6 per cent more than the Rs 64.56 crore (40.3 per cent of TIO) in Q2-2014. For HY-2015, pay channel cost at Rs 242.77 crore (56.7 per cent of TIO) was almost double (1.91 times) the Rs 127.26 crore (42.3 per cent of TIO) in HY-2014.

     

    Finance cost in Q2-2015 at Rs 29.58 crore (13.5 per cent of TIO) was 2.6 per cent lower than the Rs 30.37 crore (14.5 per cent of TIO) in Q1-2015 and 3.1 per cent lower than the Rs 30.52 crore (19 per cent of TIO) in Q2-2014. For HY-2015, finance cost at Rs 59.95 crore (14 per cent of TIO) was 5.8 per cent more than the Rs 56.66 crore (18.8 per cent of TIO) in HY-2014.

     

    Other expense in Q2-2015 at Rs 47.77 crore (21.8 per cent of TIO) was 21.8 per cent more than the Rs 38.05 crore (18.2 per cent of TIO) and 14.6 per cent lower than the Rs 55.93 crore (34.9 per cent of TIO) in Q2-2014. Other expense for HY-2015 at Rs 85.83 crore (20 per cent of TIO) was 10.4 per cent lower than the Rs 95.84 crore (31.9 per cent of TIO) in HY-2014.

     

    Siti Cable chairman Subhash Chandra said, “Growth in the collection of subscription revenue is the reflective of our continued emphasis on providing quality services to our consumers. We remain focused on supporting business growth by optimising our operations and continue to deepen our engagements with customers by introducing value added services.”

     

    Siti Cable executive chairman and CEO V D Wadhwa said, “Siti Cable maintained its growth trajectory in the second quarter too. We continue to focus on stabilising operations in DAS phase I and II markets and established industry best practices. The results for the quarter are reflective of these efforts. The subscriber revenue during the quarter has shown robust growth of 102 per cent”.

    Wadhwa added, “We have been working to digitize our phase 3 and 4 markets and we will keep the momentum ‘ON’ through voluntary digitization and focusing more on the monetization of existing business. We see extension in deadline as the opportunity for us to enter newer markets. In addition, we have rolled out broadband service on DOCIS 3.0 in Delhi/NCR and plan to further offer this service in more cities where we are already present. HD services with 30 plus channels have also been rolled out in all geographies.”

     

    Click here for full financial report

    Click here for full financial report