Siti Q3 EBITDA up 9% amid subscription, carriage rev growth

MUMBAI: Multi system operator (MSO) Siti Networks’ EBITDA for the quarter ended 31 December has increased 9% to Rs 77.5 crore compared to Rs 71.1 crore in the trailing quarter.

EBITDA excluding activation revenue jumped 85% to Rs 49.8 crore on a QoQ basis. Operating EBITDA margin expanded by 614 bps QoQ.

Siti’s revenue increased 2.41% to Rs 364.8 crore from Rs 356.2 crore. Expenditure remained flat at Rs 287.3 crore as against 285.1 crore. Loss before tax narrowed 19% to Rs 37.4 crore from Rs 46.2 crore quarter ago.

Carriage revenue grew 17% to Rs 82.9 crore from Rs 71 crore. Subscription revenue was up 3% to Rs 211.8 crore as against 205.4 crore in the trailing quarter. Activation revenue was down 37% to Rs 27.7 crore on account of lower STB seeding.

The company noted that its subscription collection efficiency was at 95% in Q3FY18.

The MSO seeded 460,000 set top boxes (STBs) in the quarter taking its total video subscriber base to 11.32 million. In the trailing quarter, the MSO had seeded 700,000 STBs to take its video base to 11.1 million.

Siti also added 36,000 high definition (HD) subscribers to take its HD base to 2.9 lakh.

Broadband revenue flat at Rs 25.5 crore compared to Rs 25.4 crore quarter ago. The company added 9,000 broadband subscribers to take its broadband base to 2.47 lakh. Broadband homes passed for the quarter was 16.8 lakh compared to 16.2 lakh.

Siti Broadband exited December 2017 with 65% acquisitions on longer-term advanced rental plans. About 29% of DOCSIS base has been converted to advanced rental plans.

While commenting on the results, Siti Networks chief business transformation officer Rajesh Sethi said, “Our sustained focus on building operating efficiencies at SITI, coupled with an agile and process driven workforce has driven our EBITDA growth this quarter to INR 775 Mn.

“Our Operating EBITDA Margin has expanded 2.5 times year on year to 14.8%, which is a testament to the successes we have been achieving in this transformation. We are hopeful about the impending implementation of the New Tariff Order which will give our customers the Right to Choose while improving profitability through cost optimization.”

Consolidated gross debt stood at Rs 1,479 crore while net debt was at Rs 1,376 crore. ICRA & CARE have assigned a long-term rating of “A-“ for the Company. The outlook on the long-term rating is stable.