Scatmag.com

October 2017


BUSINESS NEWS


SITI TRIMS WORK FORCE

As part of its effort to trim its ₹ 65 Crore losses, S I T I Networks h a s terminated employment of 670 employees, with 3 month's severance pay. Almost 100 of those asked to go were in administration. "Cost-cutting is imperative," says Chief Transformation Officer Rajesh Sethi.

The network has a bloated workforce: 3,500 employees, and 500 field offices. There are 22 field offices in Delhi alone.

Siti Networks claims 13 million Digital cable TV subscribers.

"People, processes and product are what we are focusing on. Get the basics of business right. And, take up initiatives that bring in revenue," says Sethi.


RAJ TV LOSS UP 45%

Raj TV on Wednesday informed the BSE that its loss after tax for FY17 widened to ₹ 880.03 lakh, compared to a FY16 loss of ₹ 604.94 lakh as ad revenues fell.

"The performance of the Company is marginally affected by downfall in advertisement income. This is due to reduction in viewership rating for its channels due to changes in rating parameters by new rating agency," the company said in a filing.

The company also said it had to write off bad debts to the tune of ₹ 530.86 lakh during FY 2016-17 from operators on the distribution front.

Revenue from operations fell by 26% to ₹ 61.20 crore from ₹ 82.44 crore the previous year.


GTPL HATHWAY GETS 49% FDI

GTPL Hathway has received RBI approval to increase f o r e i g n investment in the company to 49%.

Foreign Institutional Investors (FII) & Foreign Protfolio Investment (FPI) limit in GTPL has been raised from 24% to 49%.

As on 3 July, the promoter holding in the company was 73.85% while public shareholding stood at 26.15%.




ORTEL Q-1 NET LOSS 2.9 CR

Ortel Communications Ltd. (Ortel) has reported a net loss of ₹ 29 million in Q1-18 as compared to a profit after tax of ₹ 1 million in Q1-17. A 44% yearo n - y e a r (y-o-y) decline in carriage fees & cable subscription fees of ₹ 288 million as compared to ₹ 277 million in the quarter last year, were significant. Internet subscription revenue was ₹ 57 million for Q1- 18 as compared to ₹ 88 million in Q1-17.

Internet connection fees declined to ₹ 4 million in the current quarter as compared to ₹ 7 million in Q1-17. Overall broadband revenue declined 35.8% y-o-y in Q1-18.

Ortel's cable TV & broadband subscriber bases declined to 747,528 in Q1-18 as compared to 750,471 a year ago.

Broadband subscriber base in the current quarter declined to 70,273 from 73,087.

Cable TV ARPU declined by ₹ 1 to ₹ 137 from ₹ 157 in Q1-17.

Broadband ARPU in Q1-18 was substantially lower at ₹ 267 as compared to ₹ 319 in the immediate trailing quarter and ₹ 401 in the corresponding year ago quarter.


VIDEOCON D2H SLOWS DOWN

Videocon d2h, DTH reported a Q-1 net profit of ₹ 1.2 crore. A R P U was almost unchanged at ₹ 198 compared to ₹ 196.

It added only 0.13 million net subscribers, compared to 0.43 million in Q-1 last year.

It now has 13.04 million net subs.



HITS-IMCL LOSS SWELLS

I n d u s I n d Media and Communications Ltd (IMCL), the company that houses H i n d u j a V e n t u r e s Ltd's (HVL) cable TV and headend-in-the-sky (HITS) business, has seen its FY17 net loss balloon to ₹ 206.1 crore from ₹ 112.7 crore a year ago. The 83% jump in net loss is due to the HITS business, which is incurring substantial losses.

T h e H I T S b u s i n e s s was earlier under Grant Investrade Ltd (GIL). GIL de-merged its HITS business into IMCL with effect from 1 October 2016

. Revenue from operations rose to ₹ 523.2 crore in FY17, up from ₹ 434.4 crore a year ago. Expenses climbed to ₹ 794.7 crore from ₹ 594.5 crore. Subscription revenue increased slightly to ₹ 224.4 crore from ₹ 220.6 crore.

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.

The consolidated subscriber base of IMCL stands at 4 million. As on 31 March, IMCL had 17 Cable TV subsidiaries.


HATHWAY: ₹ 200 CR SPEND ON BROADBAND

Hathway will incur a capital expense of ₹ 200 Cr on its broadband operations in FY 18 & ₹ 70 Cr for cable TV.

In the first quarter of FY18, the total capex deployment was ₹ 90 crore. While ₹ 50 crore was towards broadband, the rest was for cable TV operations.

Cable TV will not require much of further capex as Hathway has deployed its Phase IV STBs. Hathway deployed 250,000 lakh STBs in phases III and IV.

The broadband business is housed under Hathway Cable & Datacom (HCDL), which is a listed company.

The cable TV business is under a wholly-owned subsidiary, Hathway Digital Pvt Ltd (HDPL).

The capex requirement for broadband has fallen from ₹ 9,000 per consumer to ₹ 8,400 for a new customer. Hathway expects this trend to continue.

HCDL is looking to expand to 300,000 home pass per quarter. As on 30 June 2017, HCDL's home pass base reached 4.6 million. The company added 30,000 net consumers in the quarter.

HDPL has 6.3 million paying subs, excluding GTPL. It has 1.6 million pay subs in DAS Phase-I, 2.3 million in Phase II & 2.4 million in Phases 3 & 4.


65M SVOD IN W EUROPE

Western European SVoD revenues will increase to $6.5 billion (€5.46bn) by 2022, up from $2.8 billion in 2016.

SVoD [Subscription Video on Demand] became the region's largest OTT revenue source in 2016 by overtaking AVoD, and will continue to grow, according to the Western Europe OTT TV & Video Forecasts report from Digital TV Research.

OTT TV episode and movie revenues for 18 Western European countries will reach $14.65 billion in 2022; more than double the $6.90 billion recorded in 2016. Revenues are expected to climb by $1.69 billion in 2017 alone.

Digital TV Research forecasts 65.07 million SVoD subscribers by 2022, up from 33.96 million by end-2016. About 10.69 million subscribers were added in 2017.

SVoD subscriber growth will be modest in countries such as France, Italy and Spain. In fact, Sweden will have more SVoD subscribers than Spain in 2022, despite only having a quarter of the population, according to the report.

Netflix will remain the largest pan-regional SVoD platform, with an expected 29.61 million paying subscribers in 2022 - or 46% of the region's total. Amazon Prime Video will be the second largest by 2022, with 15 million paying subscribers. n