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December 2017


BUSINESS NEWS


HOMESHOP18 BUYS OUT SHOP CJ

Mukesh A m b a n i controlled HomeShop18 is taking over its s m a l l e r rival Shop CJ, by giving it a 25% stake in the merged company. TV18 Home Shopping Network operates a single channel: HomeShop18 while Shop CJ has 3 channels: Shop CJ, Shop CJ Tamil & Shop CJ Telugu.

Following the transaction, HomeShop18 will cease to be a subsidiary of Network18 Media & Investments. However, Network18 will continue to be the largest shareholder in the combined entity.

Shop CJ is a 50:50 JV between South Korea's CJ O Shopping and PE firm Providence Equity Partners

The only other significant player in the shopping Network segment is Naaptol, which has shifted its focus to expanding via regional language channels.

In fiscal 2017, TV18 Home Shopping Network posted a net loss of ₹ 153.1 crore on a revenue of ₹ 318 crore. Shop CJ is a private company, and its financials are not public


BARC-DEN FOR VIEWERSHIP

BARC India has partnered with DEN Networks for measuring TV viewership using Return Path Data (RPD) on some of the STBs.

DEN networks, will also use this data for subscriber management, packaging opportunities and to drive advertising revenue on their inhouse channels.

BARC India had recently upped its panel home size to 30,000. The RPD partnership will enable BARC India to capture viewership from a much larger sample.

BARC India wants to partner with more Cable and DTH operators for RPD, to have a panel of over 150,000 households.


SUN TV SUBSCRIPTIONS JUMP

For the July-Sept quarter, Sun TV's ad sales continued on a low key. Operating revenue increased to ₹ 675.90 crore.

However, out of the total growth of around ₹ 50, ₹ 35 cr (or 70%) came in the form of increased subscriptions from cable and DTH companies.

SUN TV was extremely profitable. Against revenue of ₹ 676 cr, the company reported net profit of ₹ 285 cr, a net profit margin of 42.2%.

Sun operates around 40 satellite television channels in Tamil, Telugu, Kannada and Malayalam.




SITI LOSSES INCREASE

Siti Networks' net Q-2 loss increased almost 250% to ₹ 52.42 crore, compared to Q-1.

Subscription revenue was up 20.8% Q-on-Q to ₹ 205 crore.

Carriage income fell to ₹ 71 crore, activation revenue dropped ₹ 44 crore & total income fell to ₹ 356.2 crore.

In Q-2, Siti added 700,000 subs, mostly in DAS-4 areas of West Bengal, Assam , Jharkhand , Gujarat, Andhra Pradesh & Telangana.

Active DAS subs rose only 0.5 million to 11.1 million. HD subscriber base increased to 254,000 from 220,000 in Q-1.

Broadband revenue fell 1.2% to ₹ 25 crore & the broadband subscriber base declined to 238,000 from 240,000. Broadband homes passed remained unchanged at 1.62 million, indicating it had not expanded to any new areas.

Siti's DOCSIS ARPU was ₹ 613 & Ethernet ARPU was ₹ 440.

The MSO's Siti's consolidated gross debt stands at ₹ 1,395 crore and net debt at ₹ 1,276 crore.


MUKHERJEA CASE: K CHIDAMBARAM GROUNDED

The Supreme Court has refused permission to go abroad, to Former F i n a n c e Minister P. Chidambaram's son Karti Chidambaram in connection with the INX Media case.

The CBI is investigating a case against Karti, on charges he illegally took service charges for getting FIPB clearance to I n d r a y a n i Mukherjea's INX Media for receiving funds from abroad worth ₹ 305 crore in 2007, when his father P. Chidambaram was the finance minister in Congressled UPA government.



IMCL ADDS 1.5 M DAS HOMES

Hinduja Ventures subsidiary, IndusInd Media & Communications Limited (IMCL) has said that it added over 1.5 million new active digital homes in last 10 months, partly due to its HITS service NXT Digital.

The company had a consolidated subscriber base of 4 million, as on 31 March 2017.

It noted that the expansion of its customer base has happened significantly after merger of the HITS business, which has provided an All India reach, making it the only MSO to cover all the 29 states and 4 Union territories.

In FY17, IMCL's net loss almost doubled to ₹ 206.1 crore from ₹ 112.7 crore in the previous fiscal.

In Revenue from operations rose to ₹ 523.2 crore up from ₹ 434.4 crore. Expenses climbed to ₹ 794.7 crore from ₹ 594.5 crore.

Subscription revenue was almost flat at ₹ 224.4 crore (₹ 220.6 crore last year), placement revenue fell to ₹ 98.5 crore (₹ 125.8 crore) & Pay channel cost jumped to ₹ 297.8 crore (₹ 246.1 crore). HITS transponder charges were ₹ 14.3 crore.


Siti 11.1 Million
DEN 11.0 Million
GTPL 8.28 Million
Hathway 7.2 Million
IMCL 5.5 Million
Active DAS STBs: Q-2 2017-18 (Based Of Q-2 data To Investors)

DEN POSTS Q2 NET PROFIT

Den Network reported a consolidated net profit of ₹ 1.11 crore for the September quarter. It had a net loss of ₹ 43.96 crore in Q-1.

The cable TV business posted a net profit of ₹ 10 crore compared to a loss of ₹ 2 crore in the trailing quarter.

The company has been able to increase its subscription collections particularly in Phase 3 and 4 markets. Cable subscription income was up 7% to ₹ 164 crore. Content costs fell 1% to ₹ 132 crore.

The MSO deployed 250,000 STBs in Q-2 taking its total digital cable TV base to 11 million.

The company's net loss from broadband business stood at ₹ 9 crore as against ₹ 8 crore in the trailing quarter. Revenue and expenditure stood at ₹ 20 crore and ₹ 21 crore respectively.

The company said it rolledout broadband in 10 new small towns. It added 12,000 gross subscribers to take the total base to 2.05 lakh. Homes passed stood at 879,000.

Average data consumption stood at 78 GB/ month while ARPU stood at ₹ 554.


Q-2: GTPL SEEDS 0.52 MILLION STBS

In Q-2, GTPL Hathway seeded 520,000 STBs, bringing its total to 8.28 million STB. Of these, 7.06 million are active.

Digital paying subs increased to 6.64 million from 5.7 million.

The MSO has seeded 0.73 million STBs in phase 1, 2.2 million in phase 2, 2.55 million in phase 3 and 2.8 million in phase 4.

APRU from phase 3 and 4 has increased to ₹ 58 and ₹ 49. Phase 1 and 2 ARPUs have seen a marginal improvement to ₹ 101 and ₹ 96 respectively.

Subscription increased 11% to ₹ 100.1 crore while placement revenue was 2% higher at ₹ 58.8 crore. Activation revenue fell 1% to ₹ 17.5 crore. Pay channel cost rose 1% to ₹ 80.9 crore. n