Cable TV and broadband service provider GTPL Hathway has ventured into Tamil Nadu capital Chennai during Q3 FY20. Currently, the company is only providing cable TV service in Chennai.
It is pertinent to note that Tamil Nadu is the only state where cable digitisation has still not been completed. Tamil Nadu’s state-owned multi system operator (MSO) has been losing market share to private cable and direct to home (DTH) players.
GTPL Hathway also sees an expansion opportunity with a sizeable number of analogue homes yet to make the transition to digital cable.
In South India, the company already has a presence in Telangana and Andhra Pradesh markets. It provides cable TV as well as broadband services in the two markets. GTPL Hathway has a footprint in 750+ towns across 12 States.
In August 2019, GTPL Hathway had expanded its footprint in Maharashtra and entered the Mumbai market through the acquisition of Scod18 Networking.
The company had acquired 16,42,000 shares in the company at Rs. 68.21/- per share having a face value of Rs. 10/- each. The consideration has been paid in cash. Scod18 Networking has an authorised share capital of Rs. 6.05 crore while the paid-up share capital is Rs. 1.64 crore.
Scod18 has a presence in Mumbai, Thane and Navi Mumbai. It had stated that the idea behind acquiring Scod18 is to enhance its footprint in Maharashtra. The transaction has been completed pursuant to which Scod18 has become a wholly-owned subsidiary of GTPL Hathway.
Scod18’s turnover in FY19 was Rs. 30.56 crore compared to Rs 56.88 crore in FY18 and Rs 56.18 crore in FY17.
Meanwhile, the company has disclosed its Q3 FY20 results.
The company’s consolidated net profit for the quarter has jumped to Rs 32.9 crore up 6% QoQ from Rs 28.5 crore. EBITDA was up 3% QoQ to Rs 135.2 crore from Rs 127.1 crore.
Consolidated revenue remained flat at Rs 687.5 crore compared to Rs 616.4 crore. Revenue (ex. EPC) stood at Rs 449.9 crore as against Rs 447 crore.
Cable TV subscription revenue fell 1% to Rs 258.1 crore from Rs 260.8 crore. Broadband revenue was up 6% at Rs 42.2 crore from Rs 39.8 crore. Placement/carriage income increased 4% to Rs 103.6 crore from Rs 99.7 crore.
Expenditure rose to Rs 552.3 crore from Rs 348.93 crore. Pay channel cost jumped 7% to Rs 212.5 crore compared to Rs 198.2 crore.
Commenting on the performance, GTPL Hathway Managing Director Anirudhsinh Jadeja said, “GTPL continued to deliver strong business and financial performance in the third quarter of FY20. During the quarter, we seeded 150,000 STBs and reported a strong 44% increase in CATV subscription revenue. As we had communicated during the last quarter, our strong cash flow generation is helping us not only meet our Capex requirement but also help in reducing the debt. During Q3, we further reduced our debt by ₹ 475 million and, with that, our net debt as on December 31, 2019 stood at ₹ 1,861 million.”
During the quarter, GTPL seeded 1,50,000 STBs taking total seeded STBs as on December 31, 2019 to 10.05 million. Digital paying subscribers as on December 31, 2019 stood at 7.35 million, increased by 100,000.
During Q3 FY20, the company added 2,40,000 Home Pass. Home Pass as on December 31, 2019 stood at 3.16 million. It added 20,000 net broadband subscribers during Q3 and 10,000 FTTX subscribers. Total subscribers as on December 31, 2019 were 3,75,000 of which 85,000 are FTTX subscribers. The Broadband average revenue per user (ARPU) for Q3 FY20 was maintained at Rs 415.