Siti Networks Q1 subscription revenue up by over 36%
MUMBAI: Multi system operator (MSO) Siti Networks’ first quarter subscription revenue increased by more than 36% year on year to Rs. 293 crore. This was aided by improving monetisation and upselling better value offerings to our esteemed customers. Total revenue (excluding activation) also surged by 20% y-o-y to Rs. 392 crore.
Siti reported growth in its operating EBITDA by 1.5x to Rs. 84.1 crore in Q1 FY20. The company said that it capitalised on the growth opportunity provided by New Tariff Order, by growing revenue rate while maintaining the strict control over the operational efficiencies. This manifested itself in Operating EBITDA Margin expanding significantly by 471 bps y-o-y to 21.4%.
Siti added that to better serve the subscribers under the new regime, it has created multiple offerings for the consumers which cater to multiple demographics and geographies. As a result of these customer-oriented offerings, more than 57% of the base opted for these curated MY Siti plans as it gives them the best of content and economic value with minimal effort which has resulted in Digital Subscriber ARPU leaping 2x y-o-y & 1.5x over the previous quarter to Rs. 125. This transition has truly resulted in the choice belonging to the consumer now.
Siti Networks chief business transformation officer Rajesh Sethi mentioned, “Siti has successfully started to incorporate the New Tariff Order to the very roots of our business and this is validated by the stellar results displayed in the first quarter of current fiscal. Our subscription revenue grew over 36% y-o-y with total revenue (excl. activation) increasing by more than 19% y-o-y. With the increase in collection and operational efficiencies, we saw our Operating EBIDTA grow 1.5x y-o-y to Rs. 841 million and the EBIDTA margins subsequently rose 1.3x y-o-y to 21.4%. Our product strategy to provide the optimal entertainment choices to our subscribers is bearing fruit as the ARPU has grown 2x y-o-y and we are sure that this growth momentum will only grow stronger.”