Airtel Digital TV Q1 operating profit at Rs 526.3 cr; adds 0.63 mn subs
MUMBAI: Bharti Airtel’s direct to home (DTH) arm Airtel Digital TV has posted operating profit of Rs 526.3 crore for the quarter ended 30th June as against Rs 392.6 crore in the trailing quarter ended 31st March. The company’s EBITDA margin stood at 71.2% as against 37.4% in the trailing quarter.
EBIT jumped to Rs 361.2 crore compared to Rs 185.3 crore. Total revenue stood at Rs 738.9 crore as against Rs 1050.6 crore. Adjusted for reporting changes, the revenue on comparable basis revenue is Rs 1147.8 crore.
The company noted that subsequent to the new tariff order (NTO), the service providers are responsible only for re-transmission and are not in a position to control content and pricing.
Accordingly, the gross revenue is only to the extent of net value retained i.e. customer payments received net of broadcaster’s fee (erstwhile content charges) w.e.f quarter ended June 30th, 2019.
During the quarter, the company added 634,000 net subscribers to take its total base to 16.02 million. In the trailing quarter, the company had 391,000 net subscriber additions. Monthly churn is 1% compared to 0.8%.
ARPU for the quarter was at Rs 157 as compared to Rs 229 in the corresponding quarter last year. Adjusted for reporting changes highlighted in Section 5.1.2, ARPU for the quarter stood at Rs 243.
During the current quarter, the company incurred a capital expenditure of Rs 243.7 crore. The resultant operating free cash flow during the quarter was at Rs 282.6 crore as against Rs 200.6 crore.
Airtel Digital TV offers a total of 613 channels including 80 high definition (HD) channels, seven international channels, and three interactive services.