Cable TV

GTPL cable TV business pushes revenue, profits up in Q1 2020

Cable TV revenue up 32 percent, op profit trebles

BENGALURU: 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. The company’s consolidated  revenue from operations for the quarter under review grew 50 percent year on year (y-o-y) while consolidated total income expanded 30.3 percent in Q1 2020 as compared to Q1 2019. Consolidated profit after tax more than doubled (grew 164.3 percent) to Rs 33.23 crore in Q1 2020 as compared to Rs 12.57 crore in Q1 2019.

GTPL reported consolidated revenue from operations at Rs 445.47 crore in Q1 2020 as compared to Rs  296.91 crore in Q1 2019. Consolidated total income for the period was Rs 454.30 crore as compared to Rs 296.91 crore in the corresponding year ago quarter. CATV business revenue was Rs 344.16 crore in Q1 2020 as compared to Rs 260.93 crore in Q1 2-19. CATV business reported operating result of Rs 30.49 crore for the period under review as compared to Rs 10.17 crore for Q1 2019.

The company’s internet services business (Ex-EPC Project numbers) revenue grew 9.2 percent to Rs 39.29 crore in Q1 2020 from Rs 35.98 crore in Q1 2019. The segment incurred a small loss of Rs 0.14 crore in Q2 2020 as compared to an operating profit of Rs 2.40 crore in the corresponding year ago quarter. The company had been awarded Package B of the prestigious Bharat Net Phase-II project from the Gujarat Fibre Grid Network Ltd under Digital India Initiative (EPC Project) last year. GTPL reported revenue of Rs 62.02 crore an operating profit of Rs 2.89 crore from the EPC Project.

GTPL reported revenue (Ex EPC Project) of Rs 391.1 crore, which was 29 percent more y-o-y. The company says in an earnings release that its CATV subscription revenue increased 47 percent y-o-y to Rs 247.2 crore. EBITDA Ex EPC Project increased 32 percent y-o-y to Rs 110.3 crore. Ex EPC Project PAT doubled to Rs 26.6 crore.

On the operational front, GTPL says that it has seeded 200,000 STBs and added 300,000 digital paying subscribers in Q1 2020. The company says that it had 97 lakh (9.7 million, 0.97 crore) digital paying subscribers as on 30 June 2019. Phase-wise seeding as on June 30, 2019 for Phase 1, Phase 2, Phase 3 and Phase 4 were at 8.6 lakh (0.86 million, 0.086 crore); 22.6 lakh  (2.26 million, 0.226 crore); 30 lakh (3.00 million, 0.3 crore) and 35.8 lakh (3.58 million, 0.358 crore) respectively.

Further, GTPL says that two thirds or 10,000 of the 15,000 new broadband internet subscribers were FTTX subscribers. Consumption per customer at 120 GB/month as on June 2019 was up from 38 GB/month in March 2017, or data consumption increased 3x over two years’ period.

Company speak

Commenting on performance, GTPL managing director Anirudhasinhji Jadeja said, “Q1FY20 was the first full quarter with New Tariff Order (NTO), which has led to significant growth in subscription revenue. Subscription revenue grew by 47percent on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry’s first dual service product ‘GTPL GIGAHD’ to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and broadband business in FY 2019 – 20.”

Let us look at the other numbers reported by GTPL

Consolidated total expenditure increased 42.7 percent during the quarter under review to Rs 403.99 crore from Rs 283.11 crore in Q1 2019. Pay channel cost in Q1 2020 increased 42.5 percent to Rs 180.17 crore from Rs 126.44 crore in the previous year. Other operational costs increased 2.7 percent to Rs 21.39 crore from Rs 20.83 crore.

Employee benefits expense in Q1 2020 was almost flat (decreased 0.1 percent) to Rs 35.29 crore from Rs 35.32 crore in the correspond period of the previous fiscal. Finance costs reduced 20.7 percent during the querter under review to Rs 12.45 crore from Rs 15.70 crore. Other expenses in the period increased 29.8 percent to Rs 48.37 percent to Rs 37.26 crore in the corresponding quarter of the previous year.

Latest Reads
VBS 2019: Broadcast industry dwells on TRAI consultation paper, NTO impact and way forward

The new consultation paper on broadcast tariffs is only seeking to address some infirmities in the earlier New Tariff Order (NTO) and will not bring any fundamental changes to the regulatory framework, says TRAI advisor Arvind Kumar at VBS 2019.

Cable TV Local Cable Operators
VBS 2019: Industry stalwarts discuss NTO second phase issues

MUMBAI: The sixteenth edition of the Video and Broadband Summit (VBS) organised by has brought together industry doyens under one roof to discuss and understand the impact of the new tariff order (NTO) on the television broadcasting and distribution sector. VBS 2019 marked the...

Cable TV Local Cable Operators
VBS 2019: Media industry leaders to discuss challenges facing the industry

The much-anticipated Video and Broadband Summit (VBS) 2019 will be held today in Mumbai with participation from prominent media networks, broadcast distributors, media and advertising agencies, consultancy services, OTT platforms, media monitoring firms, as well as government regulatory bodies.

Cable TV Local Cable Operators
VBS 2019 to focus on post NTO environment, relevance of cable and rise of internet

The year 2019 has fundamentally changed Indian TV broadcast industry. The long-awaited New Tariff Order (NTO) was finally greenlit in February, forcing broadcast networks, DTH players and cable operators to move to a new tariff regime.

Cable TV Multi System Operators
Video and Broadband Summit 2019 to discuss way forward with NTO & changing digital landscape

How is the new tariff order (NTO) impacting the broadcast and video distribution landscape in India? How can broadcast networks effectively partner with LCOs and MSOs to successfully navigate the post-NTO environment? These are some of the key themes which will be discussed at the Video and...

Cable TV Multi System Operators
MSO applicants seek approval status in OHM

Five MSO applicants and registered MSOs participated in an open house meeting to ascertain the status of their MSO application for grant of registration along with other queries. Representatives from TJ  Cable Network, World Phone Infrastructure Services, Haur Cable Network, Lamjingba Times Pvt Ltd...

Cable TV Multi System Operators
MCOF's Arvind Prabhu on post-NTO era, LCO concerns, OTT regulation

The turmoil of the NTO is settling, but the ecosystem is yet to benefit from it, according to Maharashtra Cable Operators Foundation (MCOF) president Arvind Prabhu.

Cable TV Local Cable Operators
InDigital announces ESOPs for local cable operators

Diwali is a time for celebration and in keeping with the spirit, business partners and local cable operators (LCOs) of InDigital, the digital cable network and NXT Digital, the HITS or Headend-In-The-Sky network of the Hinduja Group’s media vertical were in for a pleasant surprise.

Cable TV Multi System Operators
All India Digital Cable Federation welcomes festive promotion by broadcasters

MUMBAI: While All India Digital Cable Federation (AIDCF) in association with its LCO operator partners always strives to deliver better services to consumers, the federation has welcomed festive promotion by broadcasters offering a discount on select a-la carte channels. AIDCF hopes that such...

Cable TV Multi System Operators

Sign up for our Newsletter

subscribe for latest stories