ITV

Tag: Siti Cable

  • First Indian Digital TV Honours celebrates digitisation’s leading practices

    First Indian Digital TV Honours celebrates digitisation’s leading practices

    NEW DELHI: It was a day when the stalwarts of the Indian cable, broadcast and direct to home television industry converged to witness the best or leading practices of the industry being recognised at indiantelevision.com’s first ever Indian Digital TV Honors (IDTH).  The event, held at the Lalit  Hotel in Delhi late last eveing saw 15 professional/initiatives/organisations getting a citation for evolving best practices during phase I and phase II of digitisation over the past 18-24 months, ever since digital addressable system (DAS) was mandated by the government.

     

    An advisory panel comprising 13 professionals from broadcast, cable TV, consulting and technology , along with the editorial team of indiantelevision.com, helped finalise the honoraries after a tough round of discussion for over a month on the merits and demerits of those being sought to be honoured for their great work and innovations.

     

    The  event was attended by close to 200 professionals from the cable, DTH and broadcast industry and the regulatory body.

     

    The evening was anchored by Indian Television Dot Com Founder, CEO and editor-in-chief Anil Wanvari along with TV actor Prerna Wanvari  who hosted the two hour long proceedings.

     

    The First Indian Digital TV Honours, which were powered by leading Indian MSO DEN Networks began with Tata Sky being honoured for its obsessive focus on consumer service and product quality. The direct to home operator (DTH) has for long being spoken of excelling in the area of customer services, and this honour  only further supported that perception.

     

    India’s oldest DTH operator Dish TV  was honoured for its dervish like focus on its financial health and for protecting and creating shareholder value. The citation was received by CEO RC Venkateish, who shared the fact that he has to answer to public and other shareholders regularly, making  it imperative for the company to be bottom line focused. 

     

    “We have been generating free cash flow for quite sometime, and probably are the only Indian DTH company to do so,” said  Venkateish. “Things could be better if we could rationalise content costs which are still way too high.”

     

    Videocon d2h was recognised for its technological innovations and for the use of indigenous set top boxes which the group’s sister organisation manufactures indiegenously

     

    Additionally MSO Hathway Cable & Datacom was honoured for its pioneering push into broadband internet services, way before anyone else in the business. “With over 400,000 users we have gained a lot of experience which will only further help us as we move forward. Consumers are demanding a lot more bandwidth as they are guzzling a lot more online content,”  said  Hathway CFO G. Subramaniam. “We will be the best company providing  the broadband internet service in the future.”

     

    Tata Sky was also recognised for its its Value Added Services (VAS)  which it says is helping lure subscribers to them.

     

    DEN Networks, which had in 2013 attracted an investment of $160 million from Goldman Sachs at a time when every other MSO was being turned away, was honoured for becoming a beacon for the cable TV sector in the area of raising capital. Elated with the honour, DEN Network CFO Rajesh Kaushal said, “This is a very cash guzzling business and so there is a lot of investment and infrastructure that is needed. We have enough capital with us to see us through Phase I, II  and III  of DAS.”

     

    The Indian Broadcasting Foundation (IBF) was recognised for its marketing and promotional campaign to encourage the smooth spread of digitisation.  Almost every channel aired the commercial several times a day to push the message and educate consumers about digitisation and set top boxes. The same was recognised by the Indian Digital TV Honours advisory committee.

     

    “We wanted to incite consumers through the ad campaign. We had aired the promos for at least eight times a day on 150 channels,” said IBF secretary Shailesh Shah while receiving the honour.  Leading broadcaster Star India was also recognised  for its strategy to invest big money in sports. Sports TV worldwide is a big driver of pay TV and Star India’s early initiative to invest big money is only going to see a similar play being played out here.  And this in turn will likely encourage the process of digitsation.

     

    SitiCable Network was honoured for fostering Local Cable Operator (LCO) partnerships and being the first ones to give carriage fee revenue share to the LCOs. “We believe that LCOs are an integral part of the cable TV ecosystem and that is the reason we have given them the access to our subscriber management system and also are sharing the carriage fee revenue with them,” informed SitiCable COO Anil Malhotra.

     

    It was in 2013 that Doordarshan owned DTH service DD Direct Plus was rechristened as Freedish. The DTH player which introduced several innovations for its consumers in the year was recognised for catering to the needs of Indian consumers through Freedish. “Freedish is the most profitable venture of Prasar Bharti. Broadcasters are changing their business model for us, which is welcome change,” said Doordarshan additional director general Ranjan Thakur while receiving the honour.

     

    Two industry leaders have put their shoulder to the wheel and have played a major role in promoting digitsation over the past 18-24 months and have themselves invested heavily in it: Hathway Cable’s Raheja family led by Viren Raheja and DEN Networks’ founder Sameer Manchanda. “If you have patience, scale and execution one can excel in this field which holds a lot of scope. Cable will grow exactly how mobile grew in India, but you will have to wait minimum for five years to see results,” opined Manchanda. “You have to have the passion to see your belief in cable TV come true.”

     

    The evening also saw Seven Star Digital Network being honoured for effectively managing digitisation as an independent operator. Honours were also given to Ministry of Information and Broadcasting and Telecom Regulatory Authority of India for their push in making India a digitised nation. Most of industry has begun hearing of the Maharashtra Cable Operators Federation (MCOF), which represents the interests of the last mile owner.  In time, if it does manage to facilitate a feasible formula on revenues and shares with MSOs, then it stands a strong chance to be honoured  in next year’s Indian Digital TV Honours.

     

    More power to the industry’s elbow!  

  • DEN, Hathway and InCable get interim relief on ent tax

    DEN, Hathway and InCable get interim relief on ent tax

    MUMBAI: The big four  of Indian cable TV – DEN Networks, Hathway Cable and Datacom, InCable and Siti Cable – heaved a sigh of relief as 21 January ended. The reason: the Delhi High Court – which was hearing their appeal seeking to restrain the state government’s entertainment tax authorities from taking any coercive action against them for not paying entertainment tax – gave them relief, if at least for some time. The  HC passed an interim order, forbidding the tax folks  from taking any steps  against  three of the MSOs – Den, Hathway and InCable.

     

    The cases that were heard in one day saw the appeals of  DEN and Hathway being joined  together while InCable and Siti Cable presented its case separately.  With the order coming into effect, MSOs have been relieved of the duty of collecting entertainment tax from the LCOs and submitting it to the government till the judgment on the case is passed. The next hearing will be on 13 March.

     

    The respondent (the entertainment tax collection authorities) have been given four weeks to file its reply to the case. In the meanwhile, its hands are tied. However, what was not clear at the time of writing whether  the onus is back on the LCOs to pay the tax to the government.

     

    Although the MSOs are receiving the tax from LCOs, they claim they aren’t getting the full amount. Hence, the balance amount normally has to be coughed up by the MSO whether it is paid the same or not by the LCO. This is pretty unfair, they have stated.

     

    The  MSOs approached the Delhi HC as  the inexplicable  pressure was being thrust on them to cough up taxes.

  • Four national MSOs file writ petition against Ent Tax

    Four national MSOs file writ petition against Ent Tax

    MUMBAI: Entertainment tax has become a bothersome issue for both MSOs and LCOs. Right from the amount of tax levied to ownership of collection, state government mandates have got the two cable TV factions locking horns. While government regulations mandate MSOs to collect tax from the LCOs and submit it, the LCOs would rather take the onus on themselves.

     

    Four Indian national MSOs – Den, Hathway, Siticable and InCable have filed separate writ petitions in the Delhi HC to challenge several aspects of the entertainment tax being imposed as well as the tax collecting authority’s stance towards the MSOs in the state of Delhi.  The cases are all set to be heard today in a joint hearing.

     

    While Hathway Cable & Datacom was put through an enquiry on its own premises, others have decided to legally protect themselves before something similar happens to them. Siticable claims that it has been fulfilling all duties effectively. An ex parte order was taken out against it for non compliance in April and May 2013 which Siticable had appealed against. When that didn’t go very far, it decided to lodge its writ petition seeking redressal and  justice.

     

    Siticable’s first hearing was yesterday when the lawyer on behalf of the tax authority asked for a day’s time to come up with its side of the case. “We had deposited the tax and had also filled the form 10 as per requirements. Yet the authorities were after us. So we went to court to request that no coercive action be taken by them ,” says Siticable CFO Sanjay Goyal.

     

    Hathway is of the opinion that entertainment tax collection is a duty that has been undertaken by the LCOs for several years now and that is how it should be. Its writ petition states that the order passed against it was unreasonable.

     

    MSOs say that they are alright with collecting the tax and passing it on to the department but traditionally it had been the job of the LCO to do that. However, in case of  a lapse of payment by the LCO, the MSO should not be asked to cough up the remaining money is what they say.

     

    The case will come up for hearing today. Who knows whether the Delhi High Court will give a stay order or decide on its fate tomorrow itself.

  • TRAI extends CAF deadline to 15 December

    TRAI extends CAF deadline to 15 December

    MUMBAI: The multi system operators (MSOs) have time till 15 December to submit Consumer Application Forms (CAFs). The Telecom Regulatory Authority of India (TRAI) principal advisor N Parameswaran has shown forbearance and given the MSOs another 15 days to submit 100 per cent CAFs. The earlier deadline to submit CAFs was today, 20 November.

     

    The extension comes after Parameswaran’s meeting with the national MSOs held today in New Delhi. Though the MSOs had their concerns to address, in the meeting that lasted for one and a half hours, TRAI concentrated on two key issues — one, meeting the deadline for submitting CAFs for phase II by 15 December, and another, implementing gross billing from December for phase I.

     

    The meeting was attended by Hathway Cable and Datacom, Siti Cable, InCable, DEN Network, Digicable and GTPL.

     

    “We spoke at length on the issues that each MSO faces in order to comply with the deadline,” says a MSO on request of anonymity. “With LCOs not cooperating with us for submitting duly filled CAFs, and also the ongoing court cases that LCOs have filed to ensure the consumer stays under them, achieving the deadline is difficult,” he says.

     

    “The regulator will show leniency in states like Hyderabad, Madhya Pradesh and Gujarat that face problems, but in others it will not act as a Santa Claus if the deadline is not met,” says IndusInd Media and Communications Limited MD Ravi Mansukhani.

    According to Mansukhani, the bills are being generated by the MSOs, but the LCOs are not delivering them to the subscribers. “The TRAI has asked us to ensure that the bills should reach the subscribers by December. The regulator has asked us to either convince the LCO to deliver the bills to subscribers or to send them directly to each subscriber,” says Mansukhani.

     

    About 30 to 90 per cent CAFs have been collected so far. “The regulator has taken an average of this figure, which is around 50 per cent, and has said it is not enough. We have been asked to comply with this final deadline,” he mentions.

     

    The MSOs spoke at length on improving their relations with LCOs. “We want each party to realise and reap the benefits of digitisation,” states a MSO.

     

    The MSOs also raised logistic issues they were facing for collecting CAFs. “Unlike phase I which involved the big five players, phase II has several small players involved as well. And this is creating hindrance,” opines Mansukhani.

     

    The MSOs only have a few days to convince the LCOs to get ahead with both CAFs and billing. “It is a tough task, but we will have to give our best,” concludes Mansukhani.

     

    Seems like a difficult Christmas for the MSOs if they fail to meet deadlines.

  • Star Sports plays hard ball with Siti Cable

    Star Sports plays hard ball with Siti Cable

    MUMBAI: Star Sports has come out with a pan India notice against India’s Multisystem operator Siti Cable. The notice that was issued in select newspapers on 15 November as per the Telecom Regulatory Authority of India (TRAI) guidelines has hauled up the multiple system operator (MSO) on several grounds.

     

    “A huge outstanding and non-signing of agreement in both DAS as well as non-DAS markets are the two major reasons for this notice,” says Star Sports India COO Vijay Rajput.  “I would like to point out here that Siti Cable has not submitted subscriber reports for any of the DAS I and DAS II markets.  Also there have been instances of piracy. Earlier in October, we had filed an FIR against Siti Vision Digital, a joint venture unit of Siti Cable Network at Saifabad police station in Hyderabad, for illegal transmission of the Star Sports channels.”

     

     The sports network has come out heavily against Siti Cable for not playing with a straight bat.   “We have been following up with Siti Cable for all these issues but have not received a favorable response from its  officials. Therefore, as per the law of the land we have issued a 21 day public notice. We will avail all options available to us if in case Siti Cable fails to resolve the stated issues within the stipulated period,” adds Rajput.

     

     Star Sports had earlier played hardball with GTPL and yanked its channels off the cable network. Now it’s the turn of Siti Cable. Rajput says that he has been forced to take these steps. “These are the two specific cases that we are trying to address primarily due to non-payment and non-renewal of agreements.”

     

     So what is it that Siti Cable plans to do post this notice? Answers Siti Cable chief operating officer Anil Malhotra, “Well, this is a regular practice adopted by every broadcaster as per the TRAI regulation, when an agreement is about to end or has ended. The notice is a precursor to negotiation.”

     

     Malhotra claims that his cable network is already intalks with the sports channel for the renewal of contract. “We had signed the agreement last year in October-November. So the agreement is due for renewal and, so, this notice. We will amicably resolve the issue.”

    Star Sports says it is ready to revisit the matter if the MSO resolves the issues in the set deadline.

  • MSOs miss 15 November CAF deadline

    MSOs miss 15 November CAF deadline

    MUMBAI: Multi system operators (MSOs) have bought themselves some more time to collect duly filled consumer application forms (CAF) from cable subscribers across 38 cities falling under DAS phase II.

     

    The earlier deadline for CAF collection was today, that is, 15 November, and consumers failing to comply would have had their transmission cut off, even after possessing set top boxes. However, as learnt from several sources in the industry, MSOs failed to meet the timeline and are now seeking further extension.  

     

    While a few MSOs including Hathway Cable & Datacom have extended the deadline to 20 November, smaller Kolkata-based MSOs say the procedure will be complete by 23 November.

     

    It was the Telecom Regulatory Authority of India (TRAI) that had previously extended the original deadline from 20 September to 15 November. When contacted, TRAI principal advisor N Parameswaran said considering it was a national holiday today, “any decision on the final date would be taken only on 18 November.”

     

    “The MSOs have voluntarily decided to extend the date to 20 November,” informed Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo, adding that the regulator had asked the MSOs to send a review of DAS phase I, covering points like billing and CAF, in the interim.

     

    Kolkata-based Manthan and Siti Cable confirmed that they have achieved 100 per cent CAF collection whereas the Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury said a 100 per cent CAF was impossible to achieve in the City of Joy with so many festivities. “We have increased the deadline for duly filled CAF to 23 November,” he said.

     

    Cable Operators Federation of India president Roop Sharma opined that CAF collection is a difficult task at hand for operators.

     

    “Considering that the broadcasters have not yet declared the rates for the channels, it is difficult for the consumer to decide which ones they want to subscribe,” she said.
    Clearly, we have not heard of the last of CAFs, phase II – as yet.

  • Its Raining Gold on Zee Anmol

    Its Raining Gold on Zee Anmol

    MUMBAI: Zee Entertainment Enterprises Limited (ZEE), India’s leading television, media & entertainment conglomerate’s recently launched free-to-air GEC ‘Zee Anmol’ is happy to announce its festive season bonanza for its valued viewers. The channel has plans of daily gifting its ‘anmol’ viewers ‘Ek tola sona’ amongst several other bumper prizes as the gratification of its 2-week contest called ‘Zee Anmol Dekho, Sona Jeeto’. Starting 25th October till 5th November, questions about the channel’s primetime shows will be posed to viewers in the course of their telecast between 6:30 and 10 PM daily. Viewers will be required to SMS ZA <Their Answer> <Their Name> <City Name> to 57575. One lucky winner will take home ‘1 tola sona’ every day and many more will walk away with other exciting prizes. What’s more … winners will be declared on the very next day!

    Positioned as ‘Dil Choo Jaaye’, ‘Zee Anmol’ is a channel that believes in touching people’s hearts through real, genuine emotions depicted through some of the best shows that Indian Television has ever seen. ‘Zee Anmol’ stands for the most invaluable things in life – Love, family, memories! Already available across major MSO’s, cable operators and key DTH platforms such as Dish TV, DD Direct, Tata Sky, Big TV, Siti Cable, Hathway, DEN, Digi Cable and WWIL, ‘Zee Anmol’ showcases some of the choicest, hand-picked content in the history of Indian television including the most unforgettable shows from ZEE’s repository. It features some of the current hot favorite fiction and non-fiction properties of Zee TV as well as entertaining movies and kids’ content. The current programming line-up of ‘Zee Anmol’ includes shows like ‘Pavitra Rishta’, ‘Choti Bahu’, ‘Saat Phere’, ‘Naagin’, ‘Maayka’, ‘Kasamh Se’, ‘Sindoor’, ‘Jhansi ki Rani’, ‘India’s Best Dramebaaz’, ‘Shabaash India’ and ‘Dance India Dance’ amongst others.

    Tune in to ‘Zee Anmol’ for entertainment that is bound to touch your hearts. It cant get better for the viewers to win gold every day.
     

  • Siti Cable reports significant improvement in EBIDTA in Q2-2014

    Siti Cable reports significant improvement in EBIDTA in Q2-2014

    BENGALURU:  The painstaking rollout of the digitisation of India’s cable TV ecosystem and the depreciation of the rupee are taking their toll – both positively and negatively –  on national MSOs.  Take the case of Essel Group company Siti Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Ltd (WWIL). Its latest quarter (Q2-2014) shows that the company has shown an improvement in its EBIDTA to Rs 32.98 crore which is 74 per cent higher than the previous corresponding quarter last fiscal.  It’s bottomline is however stained red in  Q2-2014 with a negative PAT of Rs 21.87 crore, almost double (173 per cent) the negative PAT of Rs (-12.65 ) crore the company had reported during the corresponding quarter (Q2-2013) last year. However, the loss is lower than the Rs (-27.07) crore for the immediate preceding quarter (Q1-2014).  

     

    Let us look at some other numbers for Siti Cable in Q2-2014

     

    Operating revenue in Siti Cable’s case is primarily generated from subscriber related income especially from digitisation, income from bandwidth charges, ad income, STB activation charges and other operating revenues.

     

    The cable network reported total revenue of Rs 162.94 crore for Q2-2014, which was 56.7 per cent more than the Rs 103.98 crore for Q2-2013 and 12.9 per cent more than the Rs 144.29 crore in Q1-2014.

     

    Total expenses for Q2-2014 at Rs 129.96 crore were 57 per cent more than the Rs 85.06 crore for Q2-2013 and 15 per cent higher than the Rs 113.1 crore for Q1-2014.

     

    Siti Cable claims that it is the only MSO in India which shares 25 per cent carriage revenue with local cable operators. A big chunk of its expense is carriage sharing, pay channel and related costs in the latest quarter. The company spent Rs 65.46 crore in Q2-2014 towards this head, which was 21.7 per cent higher than the Rs 53.03 crore for Q2-2013 and six per cent more than the Rs 61.8 crore during the immediate preceding quarter Q1-2014.

     

     Siti Cable’s main operating expenses include cost of goods and services, employees’ cost, selling and distribution expenses and other expenditure. Its major cost item was cost of goods and services recorded as Rs 82.7 crore during the quarter (Q2-2014)  representing 51 per cent of the total revenue in comparison to Rs 62.15 crore in Q2-2013, representing 60 per cent of the total revenue.

     

    Siti Cable’s Selling and Distribution Expense for Q2-2014 at Rs 12.42 crore was more than quadruple (424 per cent) the Rs 2.93 crore for Q2-2013 and more than double (225 per cent) the Rs 5.51 crore for Q1-2014. Its administrative expense at Rs 25.44 crore for Q2-2014 was almost double (95 per cent more) than the Rs 13.03 crore for Q2-2013 and 22.7 per cent more than the Rs 20.74 crore in Q1-2014.

     

    Another major cost item was foreign exchange fluctuation due to Rupee devaluation during the Q2-2014, which has been recorded at Rs 7.69 crore, says the company; the corresponding figure for Q1-2014 was Rs 5.11 crore.

     

    Siti Cable chairman Subash Chandra said, “The industry is at an inflexion point where creating the valuable ecosystem for all stake holders be it consumer, broadcaster or last mile local cable operators will ensure sustainable growth. We see immense opportunity for digitization in India in the years ahead.”

     

    Siti Cable CEO V D Wadhwa said, “We are pleased to report a healthy performance in the second quarter of the year, our total revenue and EBITDA in the quarter grew to Rs 162.9 crore and Rs 33 crore, a growth of 57 per cent and 74 per cent respectively over last fiscal. Our growth was largely due to greater focus on subscription revenue despite low seeding of STB’s during the quarter. We shall continue to focus on business expansion and revenue maximization in coming quarter.”

     

    Siti Cable informed BSE that the board of directors of the company at its meeting held on 23 October 2013, inter-alia, has approved the appointment of Anil Kumar Malhotra as manager of the company for a period of three years.

  • Siti Cable reports significant improvement in EBIDTA in Q2-2014

    Siti Cable reports significant improvement in EBIDTA in Q2-2014

    BENGALURU:  The painstaking rollout of the digitisation of India’s cable TV ecosystem and the depreciation of the rupee are taking their toll – both positively and negatively –  on national MSOs.  Take the case of Essel Group company Siti Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Ltd (WWIL). Its latest quarter (Q2-2014) shows that the company has shown an improvement in its EBIDTA to Rs 32.98 crore which is 74 per cent higher than the previous corresponding quarter last fiscal.  It’s bottomline is however stained red in  Q2-2014 with a negative PAT of Rs 21.87 crore, almost double (173 per cent) the negative PAT of Rs (-12.65 ) crore the company had reported during the corresponding quarter (Q2-2013) last year. However, the loss is lower than the Rs (-27.07) crore for the immediate preceding quarter (Q1-2014).  

     

    Let us look at some other numbers for Siti Cable in Q2-2014

     

    Operating revenue in Siti Cable’s case is primarily generated from subscriber related income especially from digitisation, income from bandwidth charges, ad income, STB activation charges and other operating revenues.

     

    The cable network reported total revenue of Rs 162.94 crore for Q2-2014, which was 56.7 per cent more than the Rs 103.98 crore for Q2-2013 and 12.9 per cent more than the Rs 144.29 crore in Q1-2014.

     

    Total expenses for Q2-2014 at Rs 129.96 crore were 57 per cent more than the Rs 85.06 crore for Q2-2013 and 15 per cent higher than the Rs 113.1 crore for Q1-2014.

     

    Siti Cable claims that it is the only MSO in India which shares 25 per cent carriage revenue with local cable operators. A big chunk of its expense is carriage sharing, pay channel and related costs in the latest quarter. The company spent Rs 65.46 crore in Q2-2014 towards this head, which was 21.7 per cent higher than the Rs 53.03 crore for Q2-2013 and six per cent more than the Rs 61.8 crore during the immediate preceding quarter Q1-2014.

     

     Siti Cable’s main operating expenses include cost of goods and services, employees’ cost, selling and distribution expenses and other expenditure. Its major cost item was cost of goods and services recorded as Rs 82.7 crore during the quarter (Q2-2014)  representing 51 per cent of the total revenue in comparison to Rs 62.15 crore in Q2-2013, representing 60 per cent of the total revenue.

     

    Siti Cable’s Selling and Distribution Expense for Q2-2014 at Rs 12.42 crore was more than quadruple (424 per cent) the Rs 2.93 crore for Q2-2013 and more than double (225 per cent) the Rs 5.51 crore for Q1-2014. Its administrative expense at Rs 25.44 crore for Q2-2014 was almost double (95 per cent more) than the Rs 13.03 crore for Q2-2013 and 22.7 per cent more than the Rs 20.74 crore in Q1-2014.

     

    Another major cost item was foreign exchange fluctuation due to Rupee devaluation during the Q2-2014, which has been recorded at Rs 7.69 crore, says the company; the corresponding figure for Q1-2014 was Rs 5.11 crore.

     

    Siti Cable chairman Subash Chandra said, “The industry is at an inflexion point where creating the valuable ecosystem for all stake holders be it consumer, broadcaster or last mile local cable operators will ensure sustainable growth. We see immense opportunity for digitization in India in the years ahead.”

     

    Siti Cable CEO V D Wadhwa said, “We are pleased to report a healthy performance in the second quarter of the year, our total revenue and EBITDA in the quarter grew to Rs 162.9 crore and Rs 33 crore, a growth of 57 per cent and 74 per cent respectively over last fiscal. Our growth was largely due to greater focus on subscription revenue despite low seeding of STB’s during the quarter. We shall continue to focus on business expansion and revenue maximization in coming quarter.”

  • Siti Cable’s Q1-2014 losses almost quintuple Q1-2013 losses

    Siti Cable’s Q1-2014 losses almost quintuple Q1-2013 losses

    BENGALURU: Siti Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Limited, reported for Q1-2014 a negative PAT of Rs 27.07 crore, almost five times (467 per cent) the negative PAT of Rs 4.77 crore the company had reported during the corresponding quarter (Q1-2013) last year.

     

    However, Siti Cable’s consolidated operating profit (EBITDA) for Q1-2014 was Rs 31.18 crore as compared to Rs 27.74 crore during corresponding quarter last fiscal, showing a 12.4 per cent growth.

     

    Siti Cable paid Rs 61.80 crore towards carriage sharing, pay channel and related costs during Q1-2014 as compared to NIL during Q1-2013 and Q4-2013. The cable service provider had paid Rs 234.345 crore towards this expense head during FY-2013.

     

    Let us look at some of the other results for Q1-2014

     

    Operating revenue in Siti Cable’s case is primarily generated from subscriber related income especially from Digitisation, income from bandwidth charges, income from advertisements, STB activation charges and other operating revenues.

     

    The company reported a 27 per cent growth in consolidated revenues to Rs 144.29 crore for Q4-2014 as compared to Rs 113.5 crore for Q1-2013. Siti Cable’s consolidated revenues for Q1-2014 were slightly lower (2.1 per cent) than the Rs 147.44 crore reported for Q4-2013.

     

    Siti Cable’s main operating expenses include cost of goods and services, employees’ cost, selling and distribution expenses and other expenditure. Its major cost item was cost of goods and services recorded as Rs 77.83 crore during the quarter representing 54 per cent of the total revenue in comparison to Rs 60.04 crore in Q1-2014, representing 53 per cent of the total revenue. Another major cost item was Foreign Exchange Fluctuation due to Rupee devaluation during the Q1-2014, which has been recorded by Rs 5.11 crore.

     

    Total operating costs for Q1-2014 at Rs 113.1 crore (78 per cent of consolidated revenues for Q1-2014) were higher by 32 per cent than the Rs 857.6 crore (76 per cent of consolidated revenues for Q1-2013) for the corresponding quarter last year, and were 6.9 per cent lower than the total operating costs of Rs 121.42 crore reported for Q4-2013.

     

    Employee benefit costs for Q1-2014 at Rs 9.11 crore, though two per cent lower than the Rs 9.29 crore reported for Q4-2013, were 17.3 per cent higher than the Rs 7.69 crore reported for the corresponding quarter last year (Q1-2013).

     

    Other expenses for Q1-2014 at Rs 39.90 crore also saw a steep reduction of 48.3 per cent as compared to the Rs 77.18 crore in Q1-2013 and were lower by 67 per cent than the Rs 121.12 crore during Q4-2013.

     

    Siti Cable paid Rs 26.13 crore towards finance cost for Q1-2014, 48 per cent more than the Rs 17.57 crore it paid in Q1-2013, but 15.4 per cent lower than the Rs 30.9 crore it paid in Q4-2013.

     

    Siti Cable chairman Subhash Chandra said, “The on-going digital revolution in Indian cable television distribution industry is set to bring in all round gains for the entire industry value chain. Digitisation will transform the way television is seen, consumed and marketed. For customers, digitisation brings an enhanced viewing experience, expanded channel pool, power to choose and pay only for the chosen channels. For MSOs like Siti Cable, the digitisation will bring digitally addressable consumer base leading to higher revenues and profitability.”

     

    Despite uncertain environment Siti Cable has done well in this quarter and has driven higher revenue through relentless focus on operational excellence. Siti Cable is EBITDA positive in this quarter as well, which clearly indicates continuing growth path”, Chandra said.

     

    Siti Cable executive director and CEO V D Wadhwa said, “Our focus area is to increase the collection of monthly subscription revenues from the ground. We made healthy progress in metros cities where we are present. We are far ahead of other operators in terms of subscriber wise billing and collection. In phase-II cities the collection are likely to improve in coming quarters. We have also collected significant numbers of Subscriber Application form (SAF) and Channel/Package selection form from Delhi & Mumbai.”

     

    Wadhwa added, “Digitisation marks the beginning of an organised and professional way of conducting business and opens up possibilities of multiplier revenues from television and numerous value added services (VAS). The encouraging growth trends make us more confident of further accelerating the growth momentum and serving the cable TV viewing needs of many more million Indians on Siti Cable Network.”