Hathway posts consolidated net loss of Rs 9.4 cr in Q1
MUMBAI: Hathway Cable and Datacom has posted a consolidated net loss of Rs 9.4 crore for the quarter ended 30th June as against a net profit of Rs 6.6 crore in the trailing quarter. In the same quarter of the previous fiscal, the consolidated net loss stood at Rs 51.7 crore.
The company’s EBITDA jumped 37% to Rs 104.4 crore compared to Rs 76.1 crore in Q4 FY19. In the previous fiscal, the EBITDA stood at Rs 90.5 crore.
Hathway’s revenue increased 18% to Rs 449.8 crore as against Rs 381 crore. The revenue stood at Rs 384.7 crore in the year ago period.
The cable TV subscription income was up 28% at Rs 216.7 crore from Rs 169.9 crore. On a YoY basis, the subscription income jumped 38% to Rs 157.4 crore.
Placement revenue stood at Rs 78.7 crore which is a 35% jump on QoQ basis and 5% on YoY basis. Activation revenue dropped 3% to Rs 15.3 crore. On a YoY basis, the activation revenue dropped 13%.
Broadband revenue stayed flat at Rs 133.8 crore compared to Rs 132.4 crore in Q4 FY19 and Rs 129.8 crore in Q1 FY19.
Total expenditure jumped 20% to Rs 356.6 crore from Rs 297.2 crore. In the previous fiscal, the expenditure stood at Rs 297.8 crore.
Pay channel cost saw a minor 1% decline to Rs 130.1 crore from Rs 131.4 crore. On a YoY basis, the pay channel cost dropped 15% from Rs 153.9 crore.
Cable TV business
Hathway’s cable TV subscriber base stood at 6 million of which 2.68 lakh were HD subscribers.
Hathway stated that in Q1 FY20 the subscription collection efficiency is at 100%. Post the implementation of new tariff order (NTO), the business model changed from B2B to B2B2C.
It further stated that Hathway is well poised to take advantage of company of the strategic and execution strengths to delight consumers, out-execute competition and get required return on business investment with no hangover of historical anomalies in content cost.
Hathway said that 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, it added.
The company has deployed robotics enabled calls in regional languages to bring customer awareness on subscription renewals and service expiry. Further, regional call centers with enhanced capacity and multi-lingual capabilities for better management of customer complaint and calls.
It also said that it has enabled instant customer activation with a lead time of 15 seconds. It is also enabling online payments for Secondary Point Customers (GST regd. LCO). It has enhanced IT to manage two million transactions per day.
The company’s broadband home passes jumped to 5.5 million. The broadband subscriber stood at 840,000 compared to 810,000 in Q4 FY19. The company stated that the FTTH markets are leading growth in customers acquisition. It is focussed on doubling net additions momentum Q2 onwards.
Focus increased on customer delight, continuous increase in bandwidth/consumer. National average on monthly data consumption is 134 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.
It also stated that the Playbox is helping to increase data usage, as consumers shift Viewing to OTT on a large screen, thereby further strengthening the business case for FTTH
It further said that the GPON FTTH Parallel network being deployed in High Potential High Penetrated DOCSIS home passes. Opportunity to increase market share by offering 200 MBPS – 500 MBPS speed to premium consumers.