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Hathway sees strong growth in broadband, cable TV biz in Q3

MUMBAI: Hathway Cable and Datacom’s standalone net profit comprising the cable broadband business has jumped 71% to Rs 23.9 crore during the quarter ended 31 December as against Rs 14 crore in the trailing quarter.

EBITDA jumped 13% to Rs 66 crore compared to Rs 58.6 crore quarter ago. Broadband subscription revenue jumped 6% to Rs 138.7 crore as against Rs 131.1 crore. Total expenditure remained flat at Rs 78.6 crore compared to Rs 78.4 crore.

The company added 50,000 net subscribers to take the total broadband subscriber base to 7.5 lakh. Homes Passes reached 50 lakh through a constant focus on network expansion as against 48 lakh in the previous quarter.

The average revenue per user (ARPU) for the new customer was Rs 770 (excluding taxes). ARPU for the quarter remained flat at Rs 717.

Average GB /consumer/month has increased to 100 GB in the month of December indicating a strong demand side potential of high-speed wireline broadband.

Hathway has appointed TCS as System Integrator to automate various Processes and Improve Quality of Service. It is offering free cloud storage of 1 TB to all yearly pay term consumers in association with Microsoft.

The minimum data limit across the country has increased to 200 GB/consumer/month. The company said that 45% of consumers have monthly data limits of 1,000 GB.

GPON FTTH Parallel network being deployed in High Potential High Penetrated Docsis home passes. The company sees an opportunity to increase market share by offering 200mbps – 500mbps speed to premium consumers.

The upgradation of Docsis 3.0 technology to Docsis 3.1 is in progress to further enhance customer experience. Docsis 3.1 is the latest global technology for offering high-speed broadband over cable.

Cable TV business

Hathway’s EBITDA from the cable TV business housed under Hathway Digital has jumped 22% to Rs 40.5 crore from Rs 33.3 crore in the trailing quarter. EBITDA margin improved 200 Bps to 16% for the quarter compared to 14%.

Total income jumped 5% to Rs 258.1 crore from Rs 245.4 crore. Subscription revenue was up 6% to Rs 148.3 crore. Placement revenue jumped 6% to Rs 78.2 crore. Activation revenue fell 9% to Rs 23.6 crore.

Subscription and placement revenue contribution stood at 58% and 31% respectively.

Expenditure jumped 3% to Rs 217.6 crore from Rs 212.1 crore. Pay channel cost remained flat at Rs 139.7 crore compared to Rs 138.5 crore.

As on 31 December, Hathway Digital had seeded 7.2 million set top boxes (STBs). The total universe stood at 7.5 million. The company had 2 lakh high definition (HD) customers.

The company said that the collections have grown by 9% QoQ demonstrating strong improvement in efficiency.

Effective monetisation have resulted in significant ARPU increase: Phase I from Rs 105/- to Rs 108/- (+3%), Phase II from Rs 98/- to Rs 102/- (+4%), Phase III from Rs 58/- to Rs 66/- (+14%), Phase IV from Rs 41/- to Rs 52/- (+27%).

The company noted that Hathway Connect penetration reached to 2/3rd of our base in Q3-FY18 with 55% of online payment by LCO assuring stable growth in business.