NXT Digital records Rs 110.05 crore profit in FY 20 against loss of Rs 303.43 crore in the previous year

The impressive turnaround saw net profit of Rs 110.05 crore in FY 20, up from a loss of Rs 303.43 crore in FY 19.

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By Basil Kannagi Arasu

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NXT Digital yesterday announced the results for the quarter ending March 31, 2020. NXT clocked a magnificent turnaround registered a net profit of Rs 110.05 crore in FY 20 as against a net loss of Rs 303.43 crore in the previous one. The turnaround was driven by a robust performance of its media business through IMCL.

NXT’s revenue stood at Rs 1162.1 crore in FY 20, up from Rs 704.62 crore in FY 19 growing by 65% while EBIDTA grew from a loss of Rs 72.61 crore in FY 19 to Rs 218.01 crore in FY 20. The impressive turnaround saw net profit of Rs 110.05 crore in FY 20, up from a loss of Rs 303.43 crore in FY 19.

NXT’s digital business currently reaches out to a subscriber base of over 5 million customers across 1,500 towns through digital cable and India’s only Headend-In-The-Sky (HITS) platform. NXT is continuing to focus on the semi-urban and rural India which comprises 60% of NXT’s base which continues to see pay-TV penetration and ARPU growth.

It is separately growing ARPUs through value added service and differentiated products. It is focusing on 100% prepaid collections with a focused E&R (engagement & retention) model for subscribers and franchises. It is also improving cost efficiencies having moved to 32APSK technology to improve satellite throughput by 30%.

NXT is working to develop set-top boxes locally and thereby stimulate the the India manufacturing industry, initiating ‘digital’ online training for LCOs, establishing a robust digital payment collection platform, and proactive Business Continuity Plan (BCP) rolled out to ensure top class services even amidst major cyclones and the Covid-19 pandemic that impacted the entire country.

Commenting on the performance, Vynsley Fernandes, Chief Executive Officer, IMCL reiterated that “This kind of outstanding performance consistently over the last 4 quarters speaks volumes on our commitment towards our subscribers through strong value creation. We firmly stand committed to further our endeavour of creating an integrated platform for digital services, offering Cable TV, Satellite, Broadband and other digital media, all under one roof. Building an effective framework along with our product bundling strategy has been crucial for our business turnaround in FY20. With close to a 100% prepaid base and a substantial presence in Phase 3 and 4 markets, IMCL expects to continue on its digital growth path.”

The company will be taking its subscriber base over 10 million and has already signed on large Multi-System operators to provide delivery services with the expansion of its managed services. It is separately looking to tap into the Cable TV market which has over 69 million subscribers. The model will be to support smaller MSOs and LCOs which are unable to sustain business due to increasing costs of connectivity.

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Basil Kannagi Arasu

News Reporter

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Basil likes to cover the latest happenings in the Media and Entertainment Industry in India. You can always find him browsing his phone.

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