How Hathway’s cable TV and broadband companies performed in Q1

MUMBAI: Hathway’s combined EBITDA from cable TV and broadband businesses stood at Rs 76.5 crore in the fiscal first quarter ended 30 June 2017, up 16% from the earlier quarter and 97% from the year-ago period.

Revenue grew 5% quarter-on-quarter (QoQ) to Rs 365.6 crore. A year ago, revenue was Rs 304.5 crore.

The financial performance for the quarter ended 30 June include that of Hathway Cable and Datacom Ltd (HCDL) and Hathway Digital Pvt Ltd (HDPL), both at the standalone level. The clubbed financials of both the companies are merely to facilitate a high-level comparison of quarterly numbers to its board, Hathway said.

They are based on the standalone financial statements of HCDL and HDPL respectively.

Earlier, Hathway had transferred its cable TV business to HDPL. The parent company HCDL, which is listed, comprises the broadband business.

Hathway Digital’s Q1 performance

Hathway Digital Pvt Ltd (HDPL), which comprises the cable TV business, reported EBITDA of Rs 27.2 crore in the quarter ended 30 June 2017.

The company’s total revenue in the fiscal first quarter stood at Rs 236.5 crore, out of which subscription income was Rs 132.5 crore.

In the total revenue mix, placement income was Rs 70.2 crore and activation Rs 24.2 crore.

Pay channel cost was Rs 135.2 crore. The multi-system operator (MSO) has concluded deals with all pay broadcasters and overall net content costs are expected to grow by 10% at a per subscriber basis.

In the first two phases of digital addressable system (DAS), average revenue per user (ARPU) remained the same quarter-on-quarter. The plan is to effect rate hike in subscription rates in Q3 in Phase I and II markets by leveraging the prowess of Hathway Connect portal.

DAS Phase III ARPU grew 10% QoQ from Rs 50 in Q4 of FY17 to Rs 55 in the first quarter of the current fiscal.

The company seeded 250,000 set-top boxes (STBs) in the quarter. The total STB population stands at 7.2 million, as of 30 June 2017.

Over 52% of Phase III + IV subscriber base have migrated to Hathway Connect portal and established price points ranging from 45 to 75 per subscriber per month (including tax) across various markets. Additional 15% are expected to migrate in Q2.

The company has effected significant savings in salary costs and other overheads to the tune of 10% in Q1.

Hathway Cable & Datacom’s Q1 performance

Hathway Cable & Datacom, which has the broadband business, reported a net profit of Rs 27.2 crore in the fiscal first quarter ended 30 June. This was boosted by offloading of GTPL shares, which fetched Rs 17.1 crore in the quarter under review. Net profit before exceptional item was Rs 10 crore.

The company’s EBITDA in the fiscal first quarter stood at Rs 49.7 crore.

Subscription revenue from broadband was Rs 129 crore, marginally up from Rs 127.6 crore. A year ago, revenue from this segment was Rs 104.6 crore.

ARPU declined QoQ to Rs 730 from Rs 740. A year ago, ARPU was 724.

There were 30,000 net subscriber adds in Q1. The focus continued to be on network expansion and homes passed reached 4.6 million.

The company sponsored YuppTV subscription for three months to all its existing consumers to give more choice and flexibility in entertainment.