Siti Q2 EBITDA jumps 24% QoQ to Rs 68.2 cr; adds 300K new digital subs

MUMBAI: Multi system operator (MSO) Siti Networks’ operating EBITDA for the quarter ended 30 September has grown by 24% to Rs 68.2 crore compared to Rs 54.9 crore in the trailing quarter. On a YoY basis, the company’s EBITDA has jumped 2.52x from Rs 27 crore in the year-ago period.

Siti’s operating EBITDA margin also expanded 150 bps to 18.2% in Q2FY19 from 17% a quarter ago. On a YoY basis, the operating EBITDA margin has increased 2.1x.

The company’s subscription revenue jumped 19% to Rs 254.8 crore from Rs. 214.9 crore aided by the strong growth in digital subscription ARPU. The subscription revenue surged 1.25x on YoY basis digital subscription ARPU increased by 19%.

The company said that the ARPU growth is across DAS phases, with Siti’s strong presence in Phase 3 and 4 showing 27% and 43% growth respectively. With a consistent focus on last mile operations, Siti achieved subscription collection efficiency of 95%.

In the quarter ending September, Siti continued its new customer acquisitions by adding 300,000 new digital subscribers with current active subscriber base at 11.75 million.

The company’s net broadband base stood at 1,62,500. Blended Broadband ARPU was steady at Rs.469. Further, 31% of the DOCSIS base has been converted to long-term lock-in plan.

While commenting on the results, Siti Networks chief business transformation officer Rajesh Sethi said, “Siti Q2FY19 performance has been strong and phenomenal with all round growth across all operational metrics. 2.52x growth in Operating EBITDA and 2.1x expansion in the margins is a testament to strong operational focus of the team. SITI’s Digital Subscriber ARPU went up by 19% and Subscription Collection efficiency improved to 95% in this quarter. This ARPU leap has been broad-based across the country to ensure consistent growth in Subscription Income in the coming quarters.”

During the quarter, Siti launched its first hybrid set top box (STB) PlayTop in line with its “Customer First” strategy. The MSO will be introducing a range of innovative converged offerings over the coming quarters.

Siti also announced its partnership with India’s largest digital payment company Paytm to provide multiple digital payment options to its customers and attractive cashback benefits in select areas. Siti Networks’ has also made Paytm’s digital payment facility available to its 24,000+ distribution partners across the country who can make online payments through various modes on the Siti Networks website.

“Siti has always been the leader in innovation for its customers and partners. This quarter, we launched Siti PlayTop, our 1st Hybrid Set Top Box. This has been received extremely well by our customers and partners, and we intend to roll out more such boxes over the coming quarters. Taking our Customer First commitment ahead, Siti has partnered with Paytm to bring a multitude of digital payment solutions for our customers. We are working with various partners across the spectrum to bring benefits of convergence to our customers,” added Sethi.

The company also said that the Supreme Court verdict in the tariff order case has paved way for the introduction of the new tariff order. Provisions of the order are aimed to increase transparency and create a level playing field.

In preparation for successful implementation of the tariff order, Siti has been working on Smart Tiered Packaging and has undertaken significant technological and process enhancements while ensuring training and education for all stakeholders.

“New Tariff order enables customers to subscribe channels of their choice and brings pricing parity across various platforms. This is a very positive move for the long-term ARPU growth of the ecosystem. Siti is fully prepared to implement the Tariff Order and well aligned to drive EBITDA and Margins expansion based on our Profitable Growth Strategy,” noted Sethi.