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Hathway Cable & Datacom made strong progress in broadband revenue in FY16 while its cable TV business was impacted by delay in the implementation of digital addressable system (DAS) in Phase III and continued challenges in driving up subscription revenue shares from local cable operators (LCOs).
Led by set-top box (STB) seeding in Phase III and broadband investment, capital expenditure was higher at Rs 11 billion in FY16 versus Rs 4.4 billion a year ago. This impacted the overall cash flow. However, operating cash flow was up by 51% to Rs 3.4 billion due to higher activation revenue and lower net loss before tax at Rs 1.2 billion compared to Rs 1.5 billion a year ago.
Activation revenue grew 177% year-on-year to Rs 2.28 billion due to DAS in Phase III. Broadband revenue jumped 61% to Rs 3.99 billion compared to Rs 2.48 billion.
Placement revenue stood at Rs 5.99 billion in FY16 compared to Rs 6.27 billion a year ago. Revenue from operations grew 14% to Rs 20.82 billion.
Content cost increased just by 1%, helping boost the company’s EBITDA. Consolidated EBITDA stood at Rs 3.9 billion in FY16, up 50% from Rs 2.56 billion a year ago. Net loss was at Rs 1.63 billion, down from a loss of Rs 1.8 billion in FY15.
For broadband, Hathway is looking to tie up with content providers, education portals and other lifestyle improvement players to bring them under one umbrella. The multi-system operator (MSO) added one million homes passed to touch 3.3 million in FY16, while broadband subscribers grew to 0.63 million from 0.45 million a year ago. The number of broadband cities expanded from 20 to 22 cities in FY16.
While in FY15 Hathway focused on augmenting the number of homes passed, the spotlight in FY16 has been on monetising the broadband business. This trend will continue this fiscal year.
After launching high-speed internet service based on Docsis 3.0 technology in October 2013, Hathway upgraded approximately 40% of its subscriber base to this service (266k) until 31 March 2016. With 50 Mbps speed at competitive price points, the MSO has been able to report better broadband subscriber retention and higher ARPU.
On the cable TV front, Hathway added 2.2 million digital subscribers in FY16 to take its total count to 10.6 million. The MSO’s total cable TV universe climbed to 12.3 million from 11.8 million subscribers in FY15. It offered 50 high-definition channels, up from 30 in FY15.
Revenue from Hathway’s subsidiaries was at Rs 9 billion in FY16, amounting to 43% of the company’s consolidated revenue. EBITDA stood at Rs 1.9 billion, amounting to 49% of the total EBITDA. Net profit was at Rs 82 million compared to a net loss of Rs 1.71 billion on a standalone basis. Net loss in FY16 stood at Rs 1.63 billion at a consolidated level.
Net debt climbed 58% to Rs 19.1 billion compared to Rs 12.1 billion in FY15. This sharp rise in debt was due to deployment of STBs in DAS Phase III and investments in broadband.
Gross debt stood at Rs 20.53 billion in FY16 compared to Rs 14.19 billion a year ago. About 61% of gross debt had unhedged exposure to USD currency compared to 57% in FY15.
During the financial year 2015–16, Hathway added four cable channels, namely DJAY, Lamhe, Home Theatre and Marathi Talkies. The company has over 20 local cable channels and offers cable TV services across 200+ cities through 23 digital headends.
Hathway has an online portal, Hathway Connect, to empower LCOs and expects its cable TV ARPU to increase by 30% in the coming quarters. The MSO offers a simplified two-tier packaging, with English-language entertainment content in the upper pack.
Hathway added nearly 1,900 employees during FY16. With this, the MSO’s total number of employees exceeded 6,600.
Hathway is planning to launch OTT services and is in talks with vendors for the same.
Hathway Cable & Datacom's performance in FY16 | TelevisionPost.com
Led by set-top box (STB) seeding in Phase III and broadband investment, capital expenditure was higher at Rs 11 billion in FY16 versus Rs 4.4 billion a year ago. This impacted the overall cash flow. However, operating cash flow was up by 51% to Rs 3.4 billion due to higher activation revenue and lower net loss before tax at Rs 1.2 billion compared to Rs 1.5 billion a year ago.
Activation revenue grew 177% year-on-year to Rs 2.28 billion due to DAS in Phase III. Broadband revenue jumped 61% to Rs 3.99 billion compared to Rs 2.48 billion.
Placement revenue stood at Rs 5.99 billion in FY16 compared to Rs 6.27 billion a year ago. Revenue from operations grew 14% to Rs 20.82 billion.
Content cost increased just by 1%, helping boost the company’s EBITDA. Consolidated EBITDA stood at Rs 3.9 billion in FY16, up 50% from Rs 2.56 billion a year ago. Net loss was at Rs 1.63 billion, down from a loss of Rs 1.8 billion in FY15.
For broadband, Hathway is looking to tie up with content providers, education portals and other lifestyle improvement players to bring them under one umbrella. The multi-system operator (MSO) added one million homes passed to touch 3.3 million in FY16, while broadband subscribers grew to 0.63 million from 0.45 million a year ago. The number of broadband cities expanded from 20 to 22 cities in FY16.
While in FY15 Hathway focused on augmenting the number of homes passed, the spotlight in FY16 has been on monetising the broadband business. This trend will continue this fiscal year.
After launching high-speed internet service based on Docsis 3.0 technology in October 2013, Hathway upgraded approximately 40% of its subscriber base to this service (266k) until 31 March 2016. With 50 Mbps speed at competitive price points, the MSO has been able to report better broadband subscriber retention and higher ARPU.
On the cable TV front, Hathway added 2.2 million digital subscribers in FY16 to take its total count to 10.6 million. The MSO’s total cable TV universe climbed to 12.3 million from 11.8 million subscribers in FY15. It offered 50 high-definition channels, up from 30 in FY15.
Revenue from Hathway’s subsidiaries was at Rs 9 billion in FY16, amounting to 43% of the company’s consolidated revenue. EBITDA stood at Rs 1.9 billion, amounting to 49% of the total EBITDA. Net profit was at Rs 82 million compared to a net loss of Rs 1.71 billion on a standalone basis. Net loss in FY16 stood at Rs 1.63 billion at a consolidated level.
Net debt climbed 58% to Rs 19.1 billion compared to Rs 12.1 billion in FY15. This sharp rise in debt was due to deployment of STBs in DAS Phase III and investments in broadband.
Gross debt stood at Rs 20.53 billion in FY16 compared to Rs 14.19 billion a year ago. About 61% of gross debt had unhedged exposure to USD currency compared to 57% in FY15.
During the financial year 2015–16, Hathway added four cable channels, namely DJAY, Lamhe, Home Theatre and Marathi Talkies. The company has over 20 local cable channels and offers cable TV services across 200+ cities through 23 digital headends.
Hathway has an online portal, Hathway Connect, to empower LCOs and expects its cable TV ARPU to increase by 30% in the coming quarters. The MSO offers a simplified two-tier packaging, with English-language entertainment content in the upper pack.
Hathway added nearly 1,900 employees during FY16. With this, the MSO’s total number of employees exceeded 6,600.
Hathway is planning to launch OTT services and is in talks with vendors for the same.
Hathway Cable & Datacom's performance in FY16 | TelevisionPost.com
