Hathway Cable and Datacom held its conference call for discussing results for quarter ended September 2016.
Key highlights:-
Standalone revenue clocked growth of 19% YoY to Rs 321 crore, mainly led by significant growth of 67% in broadband revenue
Standalone broadband subscriber base (including DOCSIS 3.0) grew to 890,000 in Q2 FY17 (800,000 in Q1FY17). Standalone ARPU stood at Rs 740.
During the quarter, CATV revenue grew by 18% YoY to Rs 110 crore. CATV ARPU for Phase 1/2/3 stood at Rs 105/90/30,
DAS 3 subscriber base reached 5.6 mn
Revenue from activation grew by 37% YoY to Rs 20.2 crore, whereas revenue from placement declined by 23% YoY to Rs 65.4 crore.
Cumulatively, total number of boxes seeded reached 11.9 mn (Phase 1/2/3 at 2.3/4.0/5.6 mn), translating in 92% penetration of overall CATV universe of 12.9 mn.
Broadband penetration stood at 21% and 37% broadband subscribers are DOCSIS 3.0
Broadband revenue will continue to rise, driven by an increase in number of subscribers as well as in ARPU. The decline in the consolidated ARPU is more on account of GTPL subscriber-additions, which are on older technology, hence come at a lower price point.
In the DAS-1 and DAS-2 markets, 56% of subscribers are under the Hathway Connect programme. The company expects to increase the adoption to 100% of these markets by end-FY17. Hathway Connect has started showing results within six months. In Bangalore the ARPU went up to Rs115 in Q2 FY17 from Rs 90 in Q4 FY16 due to Hathway Connect.
In DAS-3 markets, the company is currently focusing on seeding of STBs and expects this to be completed soon. In DAS-4 markets, voluntary seeding has started and the company expects to pick up momentumbyQ4 FY17.
Standalone capex incurred in H1 FY17 was Rs 175 crore
On a consolidated basis, gross debt stands Rs 2205 crore and net debt at Rs 2097 crore.
The demonetization would impact the Q3 performance, both in terms of cash collections and number of subscribers added.
TRAI's draft regulations are likely to make the sector more transparent and can potentially increase the ARPU for cable and DTH companies.
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