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Hathway Losses Widen To ~Rs770 Mil. In Q4 FY15

Financial Highlights

  • Hathway CATV Universe at 11.8 Mn subscribers – digitalized 8.5 Mn subscribers.
  • Excluding Activation Q-o-Q Standalone EBITDA grows by 47% to 25 Crs from 17 Crs
  • Consolidated CATV Revenue driven by growing ARPUs. Exit ARPU in Phase I and Phase II markets averaged at Rs. 100 and Rs. 67 respectively exclusive of taxes.
  • India’s Largest Cable Broadband Provider
  • Broadband Homes passed – 2.2 Mn, added ~ 0.55 Mn in FY15
  • Subscribers – 0.45 Mn (Docsis 3.0 – 0.14 Mn)
  • Broadband ARPUs increased from Rs. 310 to Rs. 530 (exit Q4FY15). (+70%)
  • Consolidated Gross Debt – 1,483.1 Crs Net Debt – 1,256.2 Crs
  • Standalone Gross Debt – 1,084.0 Crs Net Debt – 914.3 Crs

 

The Board of Directors of Hathway Cable and Datacom Limited (Hathway) (BSE:533162 NSE: HATHWAY) in its meeting held on 29th May 2015, have taken on record the Audited Consolidated financials for FY 15.

OPERATIONAL HIGHLIGHTS

CATV

We have seeded 0.43 Mn boxes in FY15 taking our total STB seeded to 8.5 Mn. With nearly 72% of our subscriber base now digitized we remain the biggest MSO in India as far as digital subscriber base is concerned. With nearly 500k STBs in stock we will continue to seed boxes at a rapid pace in near future as well. Of our digitized subscriber base, nearly 1.8 Mn subscribers fall in Phase III territories. We are among the best positioned in the industry to exploit the Phase III and Phase IV markets.

Our strategy is to roll out a “semi “ prepaid business model which facilitates LCOs to respond more quickly to customer requests for specific packages/ channels on A-la-carte basis. This initiative has been received well by our LCO business partners and will be our model for a national roll out in future. LCOs have been provided a portal and an Android application to help them ensure better customer management.

We anticipate that with smarter packaging the company will be able to drive higher ARPUs.

During the year we have reached satisfactory conclusion in our contracts for royalty payments to broadcasters. Where some broadcasters have moved to a RIO structure, the format has worked well for the company. As anticipated placement revenues continue to play an important role at present showing little or no decline.

We are working with the assumption that the Government of India will stick to its deadlines for Phase III and Phase IV digitization; we are planning our investments accordingly. We also believe that value added services and innovative content will give a further fillip to ARPU in the future. We are almost unique in the industry in carrying a lot of original programming put together specifically for our platforms (4-5 channels). The company has tremendous opportunity to monetize these brands via Advertising focused towards communities that we serve.

BROADBAND

With the addition of Delhi and Central Mumbai to Docsis 3.0 and upgradation of Surat Network, Hathway is the only MSO to offer high speed 50 Mbps broadband services in Delhi, Mumbai, Pune, Bangalore, Hyderabad and Surat. Hathway high speed broadband services are potentially now available to 23 lakh homes all across India.

With 140,000 Docsis 3.0 subscribers Hathway has the largest deployment over a Docsis3.0 platform with minimum speeds of 50 Mbps.

We have become more customer centric by upgrading our call centers with more self-help options to provide efficient services to our customers.

Docsis 3 Consumers ARPU has reached Rs. 750/- levels.

Source: Hathway