Cable TV

TRAI tariff order implementation to increase GTPL Hathway's subscription revenue, EBITDA

DPOs can now target new markets for expansion.

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/05/03/gt.jpg?itok=zU4LXEfz

MUMBAI: Despite experiencing a troubled quarter due to the implementation of the new TRAI tariff order (NTO), cable TV and broadband service provider GTPL Hathway is optimistically looking at the transformation. Even as small multi system operators (MSOs) are figuring out the new regulatory framework, GTPL Hathway sees potential in consolidation to increase its footprint across the country.

“We are also expanding into other markets. Now because of NTO there is no area demarcation and we can enter all India. So we are planning to consolidate small players also as they are facing a lot of issues because of the new NTO. It is a good opportunity for us,” GTPL Hathway promoter and managing director Anirudhsinhji Jadeja said in an earnings call after the Q4 results.

GTPL Hathway seeded 8 lakh STBs, taking the total seeded boxes to 9.5 million in FY 19 but its digital paying subscribers declined by 200K due to the implementation of NTO and transformation of entire LCO base to auto-dunning mode, finally standing at 6.8 million.

However, GTPL Hathway business head Piyush Pankaj mentioned that the full effect of NTO was not seen in the Q4 outcome as implementation was going on in February and March but the company is hoping EBITDA to rise due to it. “Going forward you will see an increase in subscription revenue and in the pay channel cost. By quarter 1, you will see the full implementation and the full effect,” he said. A lot of customers who churned out or who had not activated the service are being brought back.

Jadeja also spoke on the same lines as Pankaj regarding increase in pay channel cost after NTO. He noted that some broadcasters have changed the pricing in April. Hence, the cable TV pay channel cost will be able to be cleared only by Q1. He added that they would come to know where the pay channel cost is headed in the next quarter after the Q1. He also claimed that entry-level package which is priced at Rs 250 for consumers, even in phase III, phase IV area, has not changed drastically.

“We are talking about Rs 250 inclusive of taxes. Overall it is coming somewhere around Rs 210. If we talked about phase III and phase IV combined, that was the cost in the market. Phase IV was somewhere Rs 180-200 and phase III was somewhere Rs 200-250. So the pricing is almost the same on that basis. Plus the customer has options now that if they want to select lesser cost packages, they can do that,” Pankaj commented.

On the benefits of the NTO, Jadeja added that it has opened up avenues for DPOs as they don’t have an area restriction now. He said that markets with better opportunities especially like Maharashtra, Gujarat and West Bengal and others that need to have major penetration like Andhra Pradesh, Telangana, Assam, Bihar, Jharkhand, etc., will be the focus for further expansion.

Pankaj said that earlier the company used to bill LCOs on the basis of what is prevailing in that market but it is now happening according to the customer choice. He added that the customer is choosing channels which are higher priced and the subscription has gone up. He shared that the outflow of LCOs has gone up in the market and that is why their billing to LCO has gone up.

“So earlier when we were billing around average Rs 73-74, in Q4 we are going to see that average is coming to Rs 116-117 and further on in February and March when the implementation was going on and the customers were making the choices. So the April and May months are going to be where all the choices had been made by the customer and you will get somewhere stable revenues that will be the average revenue. We are expecting that it will be somewhere around Rs 130, which is going to be stable in the market,” he explained.

Jadeja contended that in FY20, the company is hoping to seed another one million set top boxes in existing markets as well as some parts of new geography. He also said that capex is going to be around Rs 160 crore for FY20, same as FY 19. Moreover, the company is expecting there would be net debt reduction of around Rs 40 crore to Rs 50 crore in FY20.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/16/hathway.jpg?itok=wOKcyHcx
Cable TV subscription drives Hathway revenue growth in Q1 FY 2020

BENAGLURU: Hathway Cable and Datacom Ltd (Hathway) reported 38 percent growth in subscription revenue from its cable TV business (CATV) for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q1 2019. CATV subscription...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/12/gtpl.jpg?itok=eEN4V-E3
GTPL cable TV business pushes revenue, profits up in Q1 2020

GTPL Hathway Ltd (GTPL) reported 31.9 percent growth in revenue for the quarter ended 30 June 2019 (Q1-2020, quarter or period under review) and almost three times the operating profit for its cable TV business (CATV business) as compared to the corresponding year ago quarter Q1 2019.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/12/Arasu-TV.jpg?itok=OpLXeqkI
Arasu Cable plans to launch an OTT service

Tamil Nadu Arasu Cable TV Corporation (TACTV), the State-owned MSO of Tamil Nadu, is soon jumping on the OTT bandwagon. In addition to it, the MSO will also be providing IPTV services and internet connectivity to rural and urban households. The information was shared by the state minister for...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/12/gtpl_0.jpg?itok=Y2h10i8o
GTPL Hathway consolidated Q1 FY20 PAT at Rs 294 mn, up 121 per cent y-o-y

GTPL Hathway Ltd (GTPL), India’s leading digital cable TV and broadband service provider, today announced the financial results for the first quarter of financial year 2019–20, as approved by its board of directors.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/10/IMCL_0.jpg?itok=fUWYoaSe
IndusInd Media reports improved results for fiscal 2019, to be PAT positive in FY 2020

BENGALURU: Hinduja Ventures Ltd (HVL) reported higher revenue from operation and lower losses for its digital platform operator subsidy and media and entertainment segment IndusInd Media & Communications Ltd (IndusInd Media, IMCL) for the year ended 31 March 2019 (FY 2019, year under review) as...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/06/GTPL.jpg?itok=5HVyHUYG
GTPL Hathway eyes 20-25% growth in broadband subscribers in FY20

Cable TV service providers are envisioning a future where broadband plays a major role and GTPL Hathway is also one of them. After a mild setback received from the new TRAI tariff order (NTO) implementation, the company is back on track to focus on the broadband sector in FY20.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/05/03/a.jpg?itok=QEWPH1NI
Asianet launches 4K UHD hybrid STB

Asianet Digital Network Pvt Ltd launched Asianet Smart Magic Box, a hybrid set top box (STB) making it the first MSO in the country to launch a 4K UHD hybrid STB, powered by Android TV on April 29 2019. The company is also bringing to the market Asianet LED TV - television sets with SD, full HD and...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/18/Siti_Networks.jpg?itok=COCuM4bP
Siti Networks responds to TRAI directive to comply with new tariff order

Leading multi system operator (MSO) Siti Networks on Wednesday issued a clarification, a day after the directive from Telecom Regulatory Authority of India (TRAI) to it and other distribution platform operators (DPOs) to abide by all the norms of the new tariff order within five days.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/04/17/den.jpg?itok=haz9tpl1
Den reports lower broadband, placement and activation income for FY2019

After the roll in of the Jio juggernaut, things have never been the same for the Indian broadband internet services industry.  It’s déjà vu - Den Networks Ltd (Den) reported lower subscription numbers for its fixed broadband business for the quarter and year ended 31 March 2019 (Q4 2019, FY 2019,...

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories