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Hathway transfers cable TV biz to subsidiary for Rs 302 cr; narrows net loss in FY17
MUMBAI: Hathway Cable & Datacom has said that the total consideration amount for the transfer of its cable television business to a wholly-owned subsidiary, Hathway Digital Pvt Ltd, by way of slump sale is Rs 302 crore.
The transfer of the cable TV business to Hathway Digital (formerly known as Hathway Datacom Central Pvt Ltd) has been completed as of 31 March 2017.
All assets and liabilities, including borrowings attributed to the cable TV business, has got vested in the subsidiary.
The boards of directors of Hathway Cable & Datacom’s five wholly-owned subsidiaries comprising Hathway New Concept Cable and Datacom, Hathway Krishna Cable, UTN Cable Communications, Hathway software Developers and Hathway Mysore Cable Network have also resolved to demerge their cable TV business to Hathway Digital Pvt Ltd.
In January, the board of Hathway had in a surprising move decided to transfer its cable TV business by way of a slump sale to a wholly owned subsidiary company. This was a reversal of its earlier plan of hiving off its broadband business to a subsidiary company called Hathway Broadband. Explaining the rationale, Hathway had said that, as broadband was the primary growth driver of the business, it was preferable to retain the potentially more profitable business in the parent entity.
Meanwhile, Hathway Cable & Datacom has narrowed its net loss in the fiscal ended 31 March 2017 to Rs 192.94 crore compared to Rs 237.68 crore a year ago.
Income from operations at the consolidated level grew 18.95% to Rs 1337.12 crore in FY17.
Total expenses were up 14.59% to Rs 1563.66 crore from Rs 1,364.63 crore in FY16.
Pay channel cost increased 8.78% to Rs 471.69 crore versus Rs 433.56 crore a year ago.
Loss before tax stood at Rs 193.28 crore, down from Rs 237.97 crore in FY16.
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Standalone performance in FY17
Hathway’s net loss at the standalone level fell to Rs 154.11 crore in FY17 versus Rs 188.33 crore a year ago.
Income from operations increased to Rs 1300.95 crore from Rs 1,090.50 crore a year ago.
Expenses grew 16.43% to Rs 1,481.12 crore from Rs 1272.84 crore in FY16.
Pay channel cost was up 13.28% to Rs 418.48 crore in FY17 versus 369.24 crore a year ago.
Standalone performance in Q4
Net loss at the standalone level narrowed to Rs 16.09 crore versus Rs 44.39 crore in the preceding quarter and Rs 77.78 crore a year ago.
Income from operations rose to Rs 345.19 crore, up 2.99% from Rs 335.89 crore in Q3 of FY17. It was up 21.48% from the year-ago period (Rs 284.67 crore).
Expenses fell to Rs 377.07 crore from Rs 381.30 crore in Q3 of FY17. A year ago, expenses was at Rs 340.17 crore.
Pay channel cost increased marginally to Rs 108.68 crore versus Rs 104.33 crore in the preceding quarter. A year ago, pay channel cost was higher at Rs 111.65 crore.
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