Hathway Cable posts consolidated net profit of Rs 68.2 cr in Q3
MUMBAI: Multi system operator (MSO) Hathway Cable and Datacom has returned to profitability in Q3 posting a net profit of Rs 68.2 crore compared to a net loss of Rs 2.4 crore in the trailing quarter.
EBITDA was up 9% to Rs 128.8 crore from Rs 118.4 crore. The EBITDA margin stood at 29% as against 27%.
The total income increased by 2% to Rs 450.8 crore as against Rs 442.1 crore in Q2. Subscription revenue remained flat at Rs 354.8 crore compared to Rs 354.2 crore. Placement revenue increased 9% to Rs 74.7 crore from Rs 68.4 crore. Activation revenue declined to Rs 14.7 crore from Rs 15 crore.
Total expenditure remained flat at Rs 334 crore compared to Rs 334.7 crore. Pay channel cost increased 1% to Rs 139.6 crore compared to Rs 138.6 crore. The operational cost jumped 26% to Rs 85.7 crore from Rs 68.2 crore.
The company’s subsidiary Hathway Digital posted a net profit of Rs 72.6 crore compared to a net loss of Rs 1.3 crore. Operating EBITDA declined 3% to Rs 83.9 crore as against Rs 86.1 crore. The EBITDA margin stood at 29% compared to 30%.
Total income increased by 2% to Rs 293.4 crore as against Rs 287.4 crore. Subscription revenue was down 2% to Rs 198.2 crore from Rs 201.7 crore.
Total cost increased 4% to Rs 209.5 crore from Rs 201.3 crore. Pay channel cost remained flat at Rs 130.2 crore compared to Rs 129.4 crore.
The company has a cable TV base of 6 million set-top boxes (STBs). It stated that the Q3-FY20 Subscription Collection efficiency is 100%.
The broadband subscriber base jumped to 0.89 million from 0.86 million in Q2. Home passes for the quarter increased to 5.6 million. The average revenue per user (ARPU) was down at Rs 644 compared to Rs 652.
The company stated that the FTTH customer acquisition growth momentum picked-up in Q3 FY20. The focus now is on accelerating this momentum in Q4 FY 20.
The national average on monthly data consumption is 155 GB/consumer/month. Chennai being a pure FTTH market, data consumption average is 190 GB/consumer/month which is very close to developed markets average of 200 GB / month.