Hathway Cable FY19 consolidated net loss widens 77.28% to Rs 186.5 cr

MUMBAI: Cable TV and broadband service provider Hathway Cable & Datacom’s consolidated net loss for the fiscal ended 31st March has widened 77.28% to Rs 186.5 crore compared to Rs 105.2 crore in FY18.

The company’s consolidated EBITDA has increased 7% to Rs 369.7 crore compared to Rs 345.4 crore a year ago. The EBITDA margin stood at 22.8% as against 22.4%. Consolidated revenue was up by 5% to Rs 1619.2 crore compared to Rs 1544.4 crore in the previous fiscal.

On a standalone basis, the company’s net profit before exception item surged 359% to Rs 29.4 crore compared to Rs 6.4 crore in Q3 FY19. Operating EBITDA was down 17% to Rs 42.3 crore from Rs 51.3 crore. EBITDA margin dropped 6% to 32%.

Broadband subscription revenue dropped 2% to Rs 132.4 crore compared to Rs 134.9 crore. Total expenditure jumped 8% to Rs 90 crore from Rs 83.6 crore.

Hathway Digital, the company that houses the cable TV business, has posted 10% jump in EBITDA at Rs 41 crore compared to Rs 36.1 crore in Q3 FY19.

Total income dropped 10% to Rs 241.7 crore while expenditure narrowed 13% to Rs 200.6 crore. Subscription revenue dropped 2% to Rs 162.7 crore while placement revenue fell 28% to Rs 57.2 crore. Pay channel cost was down 22% to Rs 124.6 crore.

Hathway said it has been able to successfully migrate to New Tariff Order (NTO) which came into effect from 1st February 2019. The company said its management capability, the robustness of IT platforms, deep consumer understanding and brilliant basics on ground execution has helped it to ensure smooth customer migration.

Hathway stated that post-NTO business model changed from B2B to B2B2C. With no hangover of historical anomalies in content cost, Hathway is well poised to take advantage of company strategic and execution strengths to delight consumers, out-execute competition and get required return on business investment.

“Required investments being made in understanding consumer needs and expectations in various phases of digitalization. Insights from this research will be used to further improve Hathway DPO Packs to increase customer satisfaction,” Hathway stated.

During the quarter, the company added 30,000 active paid consumers to take its total broadband base to 0.81 million. The new customer ARPU is Rs 685 excluding taxes. The ARPU for the quarter remained flat at Rs 662.

Hathway stated that the FTTH markets are leading growth in customers acquisition. It also stated that the overall broadband monthly churn has come down and currently trending at 1.75% as < 30 GB monthly usage consumers already churned to mobility in previous quarters.

The company also believes that the net customer additions growth momentum will continue and further accelerate in FY20.

It also stated that the national average on monthly data consumption is 113 GB/consumer/month. Chennai being a pure FTTH market, data consumption average is 167 GB/consumer/month which is very close to developed markets average of 200 GB / month. Nationally, 50% of consumers are above 80 GB/month data consumption, the company noted.

During the quarter, Hathway had launched Play Box based on the Android platform in Chennai markets in Q4 FY19 and are getting a positive response from the market.

“Our 25% of new acquisitions are from Hathway Play Box in just 3 months of its launch providing impetus to our overall net addition growth. This product offers world class large screen OTT viewing experience to Hathway broadband customers,” the company said.

It further stated that Play Box is helping to increase data usage, as consumers shift Viewing to OTT on a large screen, thereby further strengthening the business case for FTTH.

The company also said it has invested substantial investment in reducing customer complaint TAT and overall level of complaints, leading many markets to reach a level of 1 complaint/consumer/year

The company is also deploying GPON FTTH Parallel network in high-potential high-penetrated DOCSIS home passes. Opportunity to increase market share by offering 200 MBPS – 500 MBPS speed to premium consumers.