GTPL Hathway to deploy Rs 160-165 cr Capex in FY20
MUMBAI: Cable TV and broadband service provider GTPL Hathway plans to deploy Rs 160-165 crore Capex in FY20. In the first two quarters of the current fiscal, the company’s Capex deployment is around Rs 86 crore.
“Yearly guidance we are keeping it same as Rs.160-165 crores Capex for the whole year. We have already utilized around Rs.86 crores out of that and 50% will be utilized in next two quarters,” GTPL Hathway business head – video and chief strategy officer Piyush Pankaj told analysts during Q2 earnings conference call.
GTPL Hathway MD Anirudhsinh Jadeja said that the Capex in Q2 was around Rs. 55 crore which included Rs 40 crore on cable TV and Rs 15 crore on broadband. In Q1, the Capex stood at Rs 31 crore including Rs. 15 crore on broadband and Rs 16 crore on cable TV.
Jadeja also stated that the company collects only 25% of the amount collected by local cable operators (LCOs) from the customers. The company plans to increase its share of the revenue gradually. In Q2, the ARPU increased to Rs. 123-124 from Rs. 121.
He also noted that if ARPU touches up to Rs. 146 then the company’s subscription revenue collection will witness a yearly jump of Rs. 120 crore. “Monthly, it can add Rs. 10 crore upside revenue,” he stated.
On the expansion plans, Jadeja stated that the company plans to seed 1 million set-top boxes (STBs) in FY20. The company plans to close its subscriber base at 8 million subscribers by the end of this fiscal.
In broadband, the aim is to close the year at 400,000 subscribers at an average revenue per user (ARPU) of Rs 430. “On the EBITDA part, I am saying that we have already reached Rs. 225 crores in two quarters and we are going to do the growth rate and all in the same way till March.”
Piyush Pankaj said that there is a lot of opportunity in the market to expand the subscriber base. “There is an opportunity from DTH plus there is an opportunity from the MSOs and independent operators and all.”
He added that the company is expanding in its existing territories as well as entering new territories. “We are going very aggressive in our own territory right now on expanding it. Right now, if you see we have already seeded around 400k boxes in the last two quarters and next two quarters we have the plan to seed another 600k boxes. Our sub-base if you see has increased by 450k to 6.8 million. We are looking forward to reaching 8 million target and if not 8 million, at least 7.8, 7.9 million we should reach, so, increasing from 6.8 million by 1 million.”