GTPL Hathway Q1 consolidated net down 4% at Rs 13.3 cr

MUMBAI: Cable TV and broadband service provider GTPL Hathway’s consolidated net profit for the quarter ended 30 June has declined 4% to Rs 13.3 crore compared to Rs 13.8 crore in the sequential quarter.

EBITDA has increased 4% to Rs 84.1 crore from Rs 81 crore in the trailing quarter. EBITDA margin saw a minor decline at 27.7% compared to 28.1% in the prior quarter.

Total income jumped 5% to Rs 303.5 crore compared to Rs 288 crore. Cable subscription revenue increased 8% at Rs 168 crore compared to Rs 154.9 crore. Placement revenue was up 2% to Rs 66.1 crore from Rs 65 crore. Activation revenue jumped 23% to Rs 23.2 crore from Rs 18.8 crore. Broadband subscription declined by 1% to Rs 35.9 crore from Rs 36.2 crore.

Expenditure increased 6% to Rs 219.4 crore compared to Rs 207 crore. Pay channel cost was up 10% at Rs 126.4 crore compared to Rs 114.4 crore.

On a standalone basis, GTPL Hathway’s net profit increased 14% to Rs 9.5 crore from Rs 8.3 crore. EBITDA was up 3% to Rs 57.1 crore compared to Rs 55.5 crore.

Total income remained flat at Rs 199.1 crore compared to Rs 198.5 crore. Subscription revenue increased 7% to Rs 112.8 crore while placement revenue was up 2% to Rs 60.8 crore. Activation revenue declined 7% to Rs 16.6 crore.

GTPL seeded 200,000 set top boxes (STBs) during the quarter taking total seeded STBs to 8.9 million. The company added 200,000 active digital subscribers during the quarter, taking total active digital subscribers to 7.6 million. It added 110,000 digital paying subscribers to take the total digital paying subscribers to 7.11 million.

Phase wise seeded boxes for Phase 1, Phase 2, Phase 3 and Phase 4 were at 0.77 million, 2.22 million, 2.70 million and 3.21 million respectively.

During the quarter, the Phase 3 and Phase 4 average revenue per user (ARPU) increased by 1.6% and 3.8% respectively. As on 30 June, the average cable ARPU for Phase1, Phase 2, Phase 3 and Phase 4 at Rs 103, Rs 102, Rs 63 and Rs 54 respectively.

During Q1, the company added 230,000 home pass taking the total home pass to 1.53 million. It added 10,000 broadband subscribers during Q1. Total subscribers were 0.29 million. The broadband ARPU for Q1 FY19 was Rs 465.

GTPL launched GPON FTTH High-Speed broadband services of 100 Mbps and 40 Mbps “unlimited data” plans in select Gujarat cities. The price per month for 40 Mbps unlimited data is from Rs 388-500 (net of taxes) and 100 Mbps unlimited data is in the range of Rs 706-762 (net of taxes). GTPL said it will progressively launch this plan in other cities of Gujarat.

Commenting on the performance, GTPL Hathway MD Anirudhasinhji Jadeja said, “During the quarter we added 110,000 digital paying subscribers and reported 30% increase in subscription revenue with almost 4% increase in phase IV ARPU. We added 230,000 home pass and added 10,000 new broadband subscribers. Our operating margins during the quarter remained healthy at 27.7%. GTPL is uniquely placed to offer a combination of HD cable TV and high-speed broadband as a single package at an attractive price point to convert current customers and sign up new ones. We enjoy a vast cable subscriber base and will continue to mine them for technologically superior broadband service.”