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Tag: Siti Cable

  • Siti Cable CEO VD Wadhwa appointed as president of the new All India Digital Cable Federation

    Siti Cable CEO VD Wadhwa appointed as president of the new All India Digital Cable Federation

    MUMBAI: In a significant move to organise the digital cable industry for the overall benefit of all stakeholders and to facilitate and further create momentum for digitisation for phase III and IV, major Indian multi system operators (MSOs) have come together under the aegis of the All India Digital Cable Federation (AIDCF).

     

    The newly formed federation held its first meeting on 15 October 2014 in New Delhi, which  was attended by all the leading MSOs i.e. Hathway, Den Network, Siti Cable, In Cable, Digi Cable, Fastway, GTPL, ICNCL and Manthan.  With the formation of new Digital Cable Federation, the earlier forum of MSO Alliance has been dissolved.

     

    The members have unanimously elected SITI Cable executive director and CEO VD Wadhwa as the president of the federation (AIDCF) for an initial term of two years.

     

    The federation will work towards the overall growth of this sector and create environment for not only complete digitisation of cable TV under regulatory guidelines but also will deliver the benefits of digital services including broadband and other value added services to the people of India thus fulfilling the dream of ‘True Digital India.’

     

    AIDCF will be the official voice for the Indian digital cable TV industry and will interact with ministries, policy makers, regulators, financial institutions and technical bodies. It will also provide a platform for discussion and exchange of ideas between these bodies and the service providers, who share a common interest in the development of digital cable TV in the country.

     

    It will collaborate with other industry associations such as IBF, CII, FICCI, ASSOCHAM association etc., with the objective of presenting an industry consensus view to the government on crucial issues relating to the growth and development of the industry.

     

    The federation has invited all MSOs who have minimum one lakh digital cable TV subscriber base and who are following TRAI QOS norms to become members, so that entire industry speaks in one voice and works for common objective.

     

    The members of federation will also work out the business model for phase III & IV digitisation and create the healthy business environment for all stakeholders.

     

  • TDSAT wants to hear all MSOs on common date for RIOs, lists matter for 30 October

    TDSAT wants to hear all MSOs on common date for RIOs, lists matter for 30 October

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) today issued notice to multi-system operators Siti Cable and Den Networks to file their viewpoint on a petition by Hathway Cable & Datacom seeking a common date for implementation of reference interconnect order (RIO) agreements.

     

    The date suggested by Hathway was 1 October, but Star India against whom the application had been filed argued that the matter had already been settled in the judgment of the Tribunal on 25 September in the Taj TV case.

     

    However, chairman Aftab Alam and member Kuldip Singh fixed the matter for further hearing on 30 October, while at the same time calling upon other MSOs to implead themselves in the matter so that it could be resolved.

     

    After a fiery battle that lasted just over seven months, Hathway and Star India had last month been directed to execute an interconnect agreement based on Star’s Reference Interconnect Offer for Star general entertainment channels and Star Sports channels by 30 September.

     

    The Tribunal had also said Zee would also execute the RIO by 30 September in case it had not so far countersigned the RIO sent to it duly signed on behalf of Hathway.

     

    Before parting with the case, the Tribunal said it was “constrained to observe that the TRAI has failed to examine the rates quoted in the RIO submitted before it from the point of view indicated above. In an earlier judgment [Petitions nos.836(C)/2012 & 382(C)/2011 – Dish TV India. Ltd. Vs. ESPN Software India Pvt. Ltd.], we had asked the TRAI to pay attention to this aspect of the matter but unfortunately our observations failed to receive due attention. We reiterate the urgent need for TRAI to examine the RIOs submitted to it, especially the rates quoted by broadcasters and MSOs, to make these serve the purpose as intended in the regulations.”

     

    The Tribunal “categorically rejected” the submission made on behalf of the broadcasters that publication of their RIO on their websites satisfies the condition to act non-discriminatingly. However it added that though this may be the ideal, it can never be accepted as valid having regard to the way RIOs are being framed by the broadcasters and the MSOs at present. “In the state in which we find the RIOs at present, this argument becomes a ploy to turn the RIO into a coercive tool and a threat to the seeker of the TV channels, and it undermines the essence of the regulations, which is to promote healthy competition by providing a level playing ground”, the Tribunal added.  

  • Siti Cable commercially rolls out its DOCSIS 3 broadband service in Delhi NCR

    Siti Cable commercially rolls out its DOCSIS 3 broadband service in Delhi NCR

    GOA: Delayed digitisation is the hottest topic of discussion in the cable TV corridors.

     

    With digitisation comes the hope of increased Average Revenue Per User (ARPU) and also the realisation that it is broadband that will help the multi system operators (MSOs) to increase their ARPUs.

     

    Siti Cable is doing just that. The MSO, which for the last two months had been piloting and testing its DOCSIS 3 technology in the Delhi, NCR region, has now officially launched it in the region. Confirms Siti Cable CEO and executive director VD Wadhwa, “Yes, we have commercially launched the service in these areas.” 

     

    The MSO though has started with Delhi-NCR; it will soon take the service to every city where it has a subscriber base of more than 50,000.

     

    It is estimated that the MSO is investing anywhere close to Rs 35 lakh to Rs 40 lakh in markets with 50,000 subscribers. According to Wadhwa, as a thumb rule, of every 100 cable TV households, close to 10-15 per cent convert to broadband households. “We are taking the figure at 15 per cent,” he says.

     

    “Upgradation of homes passed cost close to Rs 500 per subscriber. So if, of the 100 households, 15 per cent opt for broadband, then we are looking at an investment of close to Rs 5000 per subscriber,” he informs.

     

    The speed for DOCSIS 2 will go up to 40 mbps, while for DOCSIS 3 will go up to 100 mbps. As for the pricing, Wadhwa says, “Our pricing will be highly competitive. We are just in the phase of finalising the tariff plan. We will have different packs for different subscribers.” 

  • Siti Cable to roll out DOCSIS 3 broadband in Delhi and NCR in Q2-2015

    Siti Cable to roll out DOCSIS 3 broadband in Delhi and NCR in Q2-2015

    MUMBAI: Siti Cable, the multi system operator (MSO) from the Essel group is looking at expanding its business in other parts of the country. In a document given to investors, it has asked shareholders for approval to increase its authorised share capital, give authority to the board of directors to create charges/mortgages in respect of borrowings and issuance of equity shares or securities convertible into equity share of up to $100 million.

     

    The company says that the reason for loss was under declaration of subscriber base and low average revenue per user (ARPU). With digital addressable system (DAS) being implemented, the MSO hopes to generate higher revenue from subscription. Siti Cable also has already become EBIDTA positive this year.

     

    For digitisation implementation, it has procured and deployed large number of set top boxes (STBs), leading to periodical amortization, leading to inadequate profits.

     

    In order to improve its situation, the MSO has proposed a few measures. It is looking at expanding its business in north, south and central India, apart from its stronghold of east India. It is preparing strategies for increasing its digital market share and becoming a strong player in DAS areas. The company is rolling out its value added services (VAS) plans across the country in phased manner. Broadband services are intended to be rolled out on advance DOCSIS 3 technology in Delhi and NCR in Q2-2015, besides having broadband subscriber base in eastern region.

     

    Meanwhile, the increase in productivity will be measured in terms of EBIDTA margin, rationalisation of expenses, standardisation of process and systems to shift focus from individual centric approach to system driven approach and additional incremental profit by rolling out VAS.

     

    The BOD is asking for approval to “create such charges, mortgages and hypothecations on all or any part of assets or immovable properties of the Company wherever situated, both present and future, and/or whole or part of the undertaking(s) of the Company of every nature and kind whatsoever together with power to take over the management of the business and concern of the Company in certain events, to or in favour of banks, financial institutions, any other lenders or other investing agencies and trustees for the holders of debentures, bonds, other instruments to secure rupee/foreign currency loans hereinafter collectively referred to as “loans”) to secure the amount(s) borrowed or to be borrowed by the company from time to time for due repayment of the principal together with interest, charges, costs, expenses and all other monies payable by the company in respect of such borrowings.”

     

    It is also seeking approval for authorisation of loan and investments by the company. The BOD is asking approval for “giving any loan to any person or other body corporate, giving any guarantee or providing security in connection with a loan taken by any other body corporate or person; and/or acquiring whether by way of subscription, purchase or otherwise, the securities of any other body corporate; up to financial limit of Rs 1000 crore over and above limits available under Section 186 of the Companies Act, 2013, notwithstanding that the aggregate of the investments and loans so far made or to be made and the guarantees so far given or to be given by the company and securities so far provided and to be provided, exceeds the limits/will exceed the limits laid down under Section 186 of the companies act, 2013 read with companies (meeting of board and its powers) rules 2014.”

     

    For issuing shares, it is seeking approval to “offer, issue and allot in one or more tranches, to investors whether Indian or foreign, including foreign institutional investors, financial institutions, non-resident Indians, corporate bodies, mutual funds, banks, insurance companies, pensions funds, individuals or otherwise whether shareholder(s) of the company or not, through an issue of equity shares or bonds, debentures and/or any other securities including foreign currency convertible bonds or depository receipts convertible into equity shares of the company at the option of the company or the holder of such security, including by way of qualified institutional placement (QIP) to qualified institutional buyers (QIB) in terms of chapter VIII of the SEBI regulations, through one or more placements of equity shares (hereinafter collectively referred to as ‘Securities’), in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised through such issue(s) of securities shall not exceed Rupee equivalent of $ 100 million.”

     

    It has also appointed VD Wadhwa as the executive director for a period of three years from 12 August 2014.

  • Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    BENGALURU: Essel group’s Subhash Chandra led Siti Cable Network Limited (Siti Cable) reported a 47.5 per cent jump in consolidated Total income from operations (TIO) in Q1-2015 at Rs 209.02 crore as compared to the Rs 141.74 crore in Q1-2014, but 10.4 per cent lower than the Rs 233.34 crore in Q4-2014. Overall, total revenue for the current quarter at Rs 211 crore was 46 per cent more than the Rs 144.1 crore reported in the year ago quarter. Siti Cable reported subscription revenue at Rs 105.7 crore as compared to Rs 32.1 crore for the corresponding quarter of last fiscal and hence recorded a growth of 229 per cent. 

     

    The company’s loss was higher in Q1-2015 by 10 per cent at Rs 31.67 crore in Q1-2015 as compared to the Rs 28.77 crore in Q1-2014 and was higher by 51.8 per cent from the loss of Rs 20.86 crore reported in Q4-2014. However, the company’s operating profit (EBIDTA) in Q1-2015 at Rs 36.3 crore (17.4 per cent of TIO) was 16.3 per cent more y-o-y as compared to the Rs 31.2 crore (22 per cent of TIO) and 30.1 per cent more than the Rs 27.9 crore (12 per cent of TIO) in Q4-2014. 

     

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

     

    (2) The figures mentioned in the report are consolidated unless stated otherwise. 

     

    Siti Cable chairman Chandra said, “The performance during the quarter reflects the investment that Siti is making to grow its business and market share. This has been accompanied by a strong improvement in both top line and bottom line growth of the company during the quarter due to continued emphasis on providing quality services to our consumers and superior technological support to our business partners.” 

     

    Let us look at the other numbers for Q1-2015 reported by Siti Cable 

     

    Total expenditure in Q1-2015 was 47.8 per cent higher at Rs 203.76 crore (97.5 per cent of TIO) as compared to the Rs 137.89 crore (97.3 per cent of TIO) in Q1-2014 and 12.6 per cent lower than the Rs 233.07 crore (99.9 per cent of TIO) in Q4-2014. 

     

    The company’s carriage sharing, pay channel and related cost (pay channel cost) in Q1-2015 at Rs 125.55 crore (60.1 per cent of TIO) was more than double (2.03 times) the Rs 61.8 crore (43.60 per cent of TIO) in Q1-2014 and 1.1 per cent more than the Rs 124.16 crore (53.21 per cent of TIO) in Q4-2014. 

     

    Y-o-y the company’s finance cost was 16.2 per cent higher at Rs 30.37 crore (14.5 per cent of TIO) in Q1-2015 as compared to the Rs 26.14 (18.4 per cent of TIO) crore, while q-o-q it was 2.8 per cent lower than Rs 31.24 crore (13.4 per cent of TIO).

     

    The company’s other expense at Rs 38.05 crore (18.2 per cent of TIO) was 4.7 per cent lower than the Rs 39.19 crore in Q1-2014 and almost half (49.5 per cent less) than the Rs 75.93 crore (32.31 per cent of TIO) in Q4-2014. 

     

    Siti Cable CEO V D Wadhwa said, “We continue to focus on improvement in quality of our services to our viewers and improvement in our subscription revenues.  The results for the quarter are reflective of these efforts. The subscriber revenue during the quarter has shown robust growth of 229 per cent and with the starting of package billing in DAS II cities and likely roll out of digitization in phase III & IV, it is set to further improve in the coming quarters.” 

     

    Additional Note: (1) In view of the mandatory digital addressable system (‘DAS’) regulation announced by the Ministry of Information and Broadcasting, Government of India, digitization of cable networks has been implemented in the cities notified for Phase 1 and Phase 2 effective November 1, 2012 and April 1, 2013 respectively. Owing to the initial delays in implementation of DAS in phase 1 cities and challenges faced by all the Multi-System Operators (MSOs) during transition from analogue business to DAS, the company says that it is in the process of executing contracts with the subscribers and implementation of revenue sharing contracts entered into with the local cable operators (LCOs). 

     

    Accordingly, the Company has invoiced and recognized subscription revenue net of sharing of revenue with the LCOs under the new DAS regime amounting to Rs. 13,497.4 lakhs (standalone Rs.9,605.34 lakhs) for the quarter ended June 30, 2014 respectively based on certain estimates derived from market trends and ongoing discussion with the LCOs. The company says that its management is of the view that the execution/implementation of such contracts will not have a significant impact on the subscription revenue for the current period. 

     

    (2) During the quarter, the Company says that it has revised the useful lives of its fixed assets to comply with the requirements as mentioned under Schedule II of the Companies Act, 2013. Accordingly, the depreciation expense for the quarter ended June 30, 2014 is higher by Rs. 458.18 lakhs (standalone financial Rs. 406.55 lakhs). Similarly, in case of  fixed assets whose life has been completed as on March 31, 2014, the carrying value (net of residual value) of those assets accounting to Rs. 1,068.84 lakhs (amounting of  Rs. 167.44 lakhs in standalone financial) has been adjusted with the opening balances of retained earnings i.e. deficit in statement of profit and loss.

     

    Click for the financial

  • Siti Cable reports 45 per cent jump in EBIDTA for FY-2014

    Siti Cable reports 45 per cent jump in EBIDTA for FY-2014

    BENGALURU: The Essel group’s Subhash Chandra-led Siti Cable Network Ltd (Siti Cable) has reported a 44.7 per cent jump in operating profit (EBIDTA) in FY-2014 to Rs 125.9 crore as compared to the Rs 87 crore in the previous fiscal. The company reported a 46.8 per cent jump in total revenue to Rs 710.3 crore in FY-2014 from the Rs 483.7 crore in FY-2013. Some of the digital dividend – courtesy the government mandated digitisation – seem to be accruing to its top line in terms of higher subsription revenues.

     

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

     

    Siti Cable’s  operating revenue in FY-2014 at Rs 697.24 crore was 48.46 per cent more than the Rs 469.64 crore in FY-2014. Operating revenue in Q4-2014 at Rs 233.34 crore was 41.26 per cent more than the Rs 165.18 crore in the immediate trailing quarter and 65.15 per cent more than the Rs141.29 crore in the year ago quarter Q4-2013. Operating revenue in its case is derived mainly from subscriber related income, income from bandwidth charges, advertisements, and other operating revenues.

     

    Siti Cable chairman Subhash Chandra said, “The cable television industry in India is rapidly changing with the visible signs of progression towards the complete digitalization. Television viewers are getting familiar with inherent advantages of digitization through cable, digital cable is playing an instrumental role in digitization. Digital cable television is a major engine of growth for Siti Cable across all geographies. Our sustained investment in this segment will further enhance the customer television viewing experience.”

     

    Let us look at the other FY-2014 and Q4-2014 numbers reported by Siti Cable:

     

    The company’s total expense (Tot Exp) in FY-2014 was 47.5 per cent more at Rs 668.20 crore (95.83 per cent of operating revenue or Op Inc)  as compared to the Rs 453.01 crore (96.46 per cent of Op Inc) in FY-2013. Tot Exp in Q4-2014 at Rs 233.07 crore (99.88 per cent of Op Inc) was 41.04 per cent more than the Rs165.25 crore (100.04 per cent of Op Inc) in Q3-2014 and 59.99 per cent more than the Rs145.68 crore (103.11 per cent of Op Inc)  in Q4-2013.

     

    A major component of the Tot Exp are channel carriage, pay channel and related costs (CPRC). Siti Cable paid 42.5 per cent more towards CPRC in FY-2014 at Rs 333.95 crore (47.9 per cent of Op Inc) as compared to the Rs 234.35 crore (49.9 per cent of Op Inc) in FY-2013. In Q4-2014, CPRC cost at Rs 124.16 crore (53.21 per cent of Op Inc) was 44.96 per cent more than the Rs  85.65 crore (51.85 per cent of Op Inc) in Q3-2014 and 42.39 per cent more than the Rs 87.20 crore (61.72 per cent of Op Inc) in Q4-2013.

     

    Siti Cable’s finance cost in FY-2014 at Rs119.11 crore (17.08 per cent of Op Inc) was 37.88 per cent more than the Rs 86.39 crore (18.39 per cent of Op Inc) in FY-2013. Finance cost in Q4-2014 at Rs 31.24 crore (13.39 per cent of Op Inc) was a mere 0.06 per cent more than the Rs 31.22 crore (18.9 per cent of Op Inc) in Q3-2013 and 21.2 per cent more than the Rs 25.77 crore (18.24 per cent of Op Inc) in Q4-2013.

     

    Clearly, the MSO -which has 56 analogue and 14 digital headend, a network of 12,000 km of coaxial and fibre optic cable, in 80 cities and reaching 10 million viewers – has more or less completed its investment in phase I and phase II towns and has hence gone easy on borrowings in the last quarter, leading to lower interest costs. With the mandate to complete phase III and phase IV of digitisation, it’s possible that its finance costs may rise again. Unless, of course, the fruits of digitisation in phase I and phase II in terms of higher subscriber revenue negate that need in the coming quarters.

     

    Other Expense in FY-2014 at Rs 202.64 crore (29.06 per cent of Op Inc) was 60.35 per cent more than the Rs126.37 crore (26.91 per cent of Op Inc)) in FY-2013. This expense head in Q4-2014 at Rs 75.39 crore (32.31 per cent of Op Inc) was 68.93 per cent more than the Rs 44.63 crore (27.02 per cent of Op Inc) in Q3-2014 and more than double (2.22 times) the Rs 33.92 crores (24.01 per cent of Op Inc) in Q4-2013.

     

    The company’s loss in FY-2014 at Rs 94.06 crore was 46.8 per cent more than the Rs 64.07 crore in FY-2013. Siti Cable’s Q4-2014 loss at Rs 22.81 crore widened by 26.97 per cent as compared to the Rs 17.97 crore in Q3-2014, but was 17.98 per cent lower than the Rs 27.81 crore in Q4-2013.

     

    Here are some Q4-2014 highlights from the Siti Cable press release.

     

    Total revenue for the fourth quarter ended 31 March 2014 was Rs 243.4 crore as compared to Rs 147.4 crore during corresponding quarter of the last fiscal.

     

    The consolidated operating profit (EBITDA) for the fourth quarter ended 31 March 2014 was Rs 27.9 crores as compared to operating profit (EBITDA) of Rs 26 crore during corresponding quarter of the last fiscal. Gross Billing started in Delhi , Kolkata (DAS Ph-1 cities).

     

    Siti Cable CEO V D Wadhwa said, “Our continuous efforts towards expanding the subscriber base, faster implementation of gross billing in Delhi and Kolkata , high focus on adherence to regulatory compliances and cost controls measure has helped us in delivering the healthy performance on a quarter on quarter basis. During the year, we have set the benchmark in being the pioneer company to monetize the business by collecting higher subscription on per subscriber basis, best backend infrastructure, fair and transparent commercial policies in dealing with all our associates”.

     

    He further added, “We are well placed to benefit from the ongoing digitization implementation and fully geared up to grow revenue and profitability at a faster pace.”

  • 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.

  • Siti Cable promoters pump in Rs 102.75 crore

    Siti Cable promoters pump in Rs 102.75 crore

    MUMBAI: India’s leading multi system operator (MSO) Siti Cable today announced to the Bombay Stock Exchange (BSE) that it had received an injection of Rs 102.75 crore from its promoters. This is the second tranche after the Rs 81 crore its promoters had pumped in March 2013.

     

    The announcement to the BSE states that “as per the terms of the 16.2 crore warrants issued on 19 March 2013 on preferential basis the allotment committee of the board of directors has upon receipt of the balance of 75 per cent consideration aggregating to Rs 102.75 crore approved allotment of 6.85 crore equity shares upon conversion of equal number of warrants at an issue price of Rs 20 per share to the allottees – Essel Media Ventures and Essel International.”

     

    Sources within Siti Cable point out that the promoters led by Zee and Essel group chairman Subhash Chandra is extremely bullish on the MSO’s prospects post completion of cable TV digitisation  nationally.

     

    The company’s CFO Sanjay Goyal confirms to indiantelevision.com that “the company had received clearances in March 2013 to bring in Rs 324 crore from the promoters in four tranches. As part of that Rs 81 crore flowed in that month itself. Though the promoter group had until September 2014 to bring in the rest, they plan on infusing the remainder of the money before 31 March 2014 to speed up the digitisation push.”

     

    The company’s CEO VD Wadhwa had in an interview to indiantelevision.com in January 2014 said that “Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6 to 7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore. The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.”

     

    In September 2012, when the company had announced that it was raising Rs 324 crore via warrants to promoter firms, it was reported that after completion of the entire exercise, he total promoter shareholding will rise to 73.08 per cent from 63.43 per cent and that of the public will drop to 26.92 per cent from 36.57 per cent.

     

    Also read:

    Siti Cable gets Rs 810 mn first tranche from promoters

    WWIL to raise Rs 3.24 bn via warrants to promoter firms

  • Q3: Digitisation pushes up MSOs’ subscription revenue

    Q3: Digitisation pushes up MSOs’ subscription revenue

    MUMBAI: Transparency in subscriber numbers with the digitisation of cable TV services in 42 cities is translating into higher subscription revenues for multi-system operators.

     

    The benefit of digitisation is still to fully reflect in revenues of MSOs as billing to cable TV subscribers is still to be completed in the 38 cities that were digitised in Phase II.

     

    Digitisation has had an added impact on the MSOs financials. Their carriage or placement revenue earned from broadcasters is decreasing.

    MSOs expect carriage revenue to rise as new channels get launched.

     

    Carriage Revenue

    Hathway Cable & Datacom’s income from placement of channels fell 14 per cent to Rs 73.6 crore in the third quarter ended 31 December, 2014. The share of placement revenue in Hathway Cable’s total revenues fell to 31 per cent in the third quarter from 41 per cent a year ago.

     

    Den Networks too saw softening of its placement revenues to Rs 117.8 crore, down nearly 2 per cent from Rs 119.90 crore a quarter earlier. Den Network’s placement revenues a year ago are not available.

     

    Subscription Revenues

    Digitisation gains led Den Networks revenues to rise to Rs 105 crore in the third quarter, up 6 per cent from Rs 99.11 crore a quarter earlier.

     

    The quarter-on-quarter increase in subscription revenues for Hathway Cable was sharper. Its subscription revenues rose to 74 per cent to Rs 119.1 crore in the third quarter from Rs 68.5 crore a quarter earlier.

     

    Hathway Cable’s subscription revenues rose as it completed billing for a substantial percentage of its cable TV customers in the cities covered under the Phase II of digitisation. As a result, its average revenue per month per subscriber too has increased substantially, an analyst said.

     

    Hathway Cable says with its focus on collections, the company has witnessed continued traction in the pace of subscription collections into January 2014.

     

    SITI Cable Network saw its total revenues in the third quarter rise 42 per cent to Rs 177.3 crore from Rs 124.7 crore a year ago.

    SITI Cable CEO V D Wadhwa says, “We gained further momentum in the third quarter of fiscal 2014.”

     

    Direct-To-Home TV

    Dish TV’s revenues rose 3% quarter on quarter to Rs 6,128 mn in the third quarter but its EBITDA fell 1.6% quarter on quarter to Rs 135.50 crore. The company’s operating profit was down as its content cost rose and selling, general and administrative expenses increased as it tapped benefits flowing from digitisation.

    Dish TV added net 2,20,000 households in the third quarter taking its subscriber base to 11.2 million.

    Analysts expect Dish TV to reap higher benefits of digitisation in Phase III and IV starting 1 October, 2014.

     

    In the case of Bharti Airtel’s DTH business, the multiplier impact of increased customer additions and higher realisations during the quarter, pushed up revenues by 25.8 per cent to Rs 538.4 crore from Rs 428 crore a quarter earlier.

     

    Leveraging economies of scale, EBITDA for the quarter increased to Rs 97 crore from Rs 14.7 crore a year earlier. Consequently, Airtel Digital TV’s EBIDTA margin improved significantly to 18.0 per cent in the third quarter from 3.4 per cent a year earlier.

     

    During the current quarter, the company incurred a capital expenditure of Rs 110.90 crore in DTH services. The cash burn during the quarter at Rs 13.9 million was significantly lower Rs 120.40 crore a year ago.

     

    Airtel DTH added 2,35,000 net subscribers in the third quarter to take its total subscriber base to 88,07,000. Its average revenue per user in the third quarter was Rs 207. 

  • SITI Cable reports higher revenue, EBIDTA for Q3-2014

    SITI Cable reports higher revenue, EBIDTA for Q3-2014

    BENGALURU: Essel Group company SITI Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Ltd (WWIL) reported 42.1 per cent growth in Total Income to Rs 177.26 crore in Q3-2014 from Rs 124.71 crore in the third quarter of last year and was 8.8 per cent higher than Rs 162.94 crore in the previous quarter.

     

    The company reported 72.8 per cent higher earnings before interest, taxes, depreciation, and amortisation (EBIDTA) at Rs 35 crore in Q3-2014 as compared to the Rs 20.25 crore in Q3 of last year and 6.1 per cent more than the Rs 32.98 crore in the immediate trailing quarter.

     

    Siti Cable Chairman Subhash Chandra said, “The ongoing digitisation is providing new impetus for growth and value in India though we are still early in the value creation process. Digital Cable Television is a major engine of growth for SITI Cable across all geographies. Our sustained investment in this segment will further enhance customer television viewing experience”.

     

    “Our results for the quarter reflect the overall stability of our operations, and demonstrate the potential for growth. SITI Cable is EBITDA positive in this quarter as well,” added Chandra.

     

    Let us look at the other figures reported by SITI Cable for Q3-2014:

     

    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. Total Income figures have been mentioned above.

     

    Operating cost for Q4-2014 at Rs 142.26 crore was 36.2 per cent more than the Rs 104.46 crore for Q3-2013 and 9.5 per cent higher than the Rs 129.96 crore for Q2-2014.

     

    The company’s Selling and Distribution expense in Q3-2014 almost quadrupled (was up 3.92 times) to Rs 12.91 crore from Rs 3.29 crore in Q3-2013 and was four per cent more than the Rs 12.42 crore in the immediate preceding quarter.

     

    Its staff cost at Rs 9.91 crore for the current quarter was 23.7 per cent more than the Rs 8.01 crore in Q3-2013 and 5.5 per cent more than the Rs 9.39 crore in Q2-2014. Administrative expense for Q4-2014 at Rs 16.88 crore was down by 3.8 per cent to Rs 16.88 crore in Q3-2014 from Rs 17.55 crore in Q3-2013 and (33.65) per cent lower than the Rs 25.44 crore in Q2-2014.

     

    Depreciation in Q3-2014 was up by 61.8 per cent to Rs 22.99 crore from Rs 14.21 crore in the corresponding quarter of last year, but was (14.6) per cent lower than the Rs 26.91 crore in Q2-2014. The company paid 24.3 per cent more towards finance charges in Q3-2014 at Rs 31.22 crore than the Rs 25.11 crore in Q3-2013 and was 2.3 per cent more than the Rs 30.52 crore in Q2-2013.

     

    The company reported a loss of Rs (22.51) crore in Q3-2014, which was 20.1 per cent more than the loss of Rs 18.75 crore in Q3-2013 and three per cent more than the Rs 21.85 crore in Q2-2014.

     

    SITI Cable CEO VD Wadhwa said, “We have gained further momentum in the third quarter of fiscal 2014. Our total revenue and EBITDA grew to Rs 1773 million and Rs 350 million respectively, a healthy growth of 42 per cent and 73 per cent respectively over corresponding quarter of last fiscal. We have maintained our margins through operational efficiency improvements despite stiff challenges faced at market place on account of DAS billing. We have made the healthy progress in collection of DAS subscription revenue which is way ahead of competition.”

     

    He further added, “We are now in exciting phase of our journey as we strengthen our existing operations and expand our digital subscriber base in phase-3&4 towns. We have started digital cable services in strategic markets of Vijayawada, Hissar and Rohtak in this quarter. We have also reinvented the company website making it more interactive and user- friendly”.

     

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