IMCL’s media & communications biz to be reorganised into parent company HVL
MUMBAI: Hinduja Ventures Ltd (HVL) is reorganising the media and communications business of IndusInd Media and Communications Ltd (IMCL) into itself. The board of HVL has accorded in-principle approval to the proposal.
The media business of IMCL consists of digital content distribution business carried out through multiple platforms including satellite and fibre and also the broadband business carried out through its subsidiary.
“The Board of Directors of Hinduja Ventures Limited (HVL) at its meeting held today have accorded In-Principle approval for reorganization of Media and Communications undertaking of IndusInd Media & Communications Limited (IMCL), into HVL subject to all statutory/ regulatory approvals and approval of the shareholders,” HVL said in a regulatory filing.
The company said that “this reorganization is in line with the growth plans of IMCL – as a leading player in the digital space, and is expected to be value accretive to all stakeholders”.
HVL operates across three segments: media and communication, real estate and investment, and treasury. It is the holding company of one of IMCL.
HVL said that IMCL is the only integrated digital platform operator (DPO) in the country, with delivery via digital cable, satellite (HITS or Headend-In-The-Sky) and fibre.
The company further stated that IMCL has seen a handsome turnaround in the quarter due to the successful implementation of the New Tariff Order by the company from February 2019 till date and holds very good promise for improved operating results going forward. The company, it added, also benefitted from successfully converting its customer base to a fully prepaid model.
“IMCL has posted a positive Operating profit and positive Profit after tax for the first quarter of the current year. We expect this positive trend to continue, buoyed by cutting-edge technology that will spawn a series of innovative products and solutions, a robust inclusive model with all our cable operator partners and a customer-centric approach,” said IMCL CEO Vynsley Fernandes.
For the quarter ended 30th June, HVL’s media and communications segment posted consolidated operating profit of Rs 16.24 crore on a revenue of Rs 228.6 crore. This is a big jump from the Rs 1.16 crore operating profit in the trailing quarter. The revenue in Q4 stood at Rs 169.9 crore. For the full fiscal, the segment posted an operating loss of Rs 198.9 crore on a revenue of Rs 703.04 crore.
IMCL has many firsts to its credit. This includes introducing multiple types of Set Top Boxes (STBs) ranging from low-cost Standard Definition (SD) STBs to Hybrid High Definition (HD) STBs, that allow conversion of any TV set into a Smart TV.
It also introduced VAS services channels branded NXT Services across multiple genres and for all age groups. It also became the provider of most number of channels across DPOs – offering 730+ TV channels in key cities and 700+ TV channels via satellite on the HITS platform.
IMCL also introduced the ‘Managed Services’ model whereby small MSOs and LCOs are able to operate profitably by using the infrastructure of IMCL on an opex model. IMCL has already signed up half a million subscribers on this model and is the only DPO providing this service as of now.
It is also providing the highest number of packages for customers to choose from in the NTO regime – 800+ packages; including specially curated packages in 11 languages.