Scatmag.com

September 2018


BUSINESS NEWS


IMCL GETS ₹ 448 CR

Hinduja Ventures Ltd (HVL) will pump ₹ 448 crores into subsidiary company IndusInd Media & Communications Ltd (IMCL) via rights shares. IMCL shareholders will be allotted rights shares @ ₹ 100 per share (face value ₹ 10) in the ratio of 5 rights for 11 equity shares held.

HVL will subscribe to any rights not availed by existing shareholders.

This will increase HVL's holding in IMCL to at least 73.66%.

IMCL's Digital cable TV & HITS platform (NXT Digital) have a presence in all the States and Union Territories of the Country, with more than 1,000 locations covering more than over 750 cities.

IMCL has a subscriber base of over 4 million almost 97% of whom are on a prepaid plan, ensuring collections.

During FY2017, IMCL had raised ₹ 757 crores through a rights issue subscribed by HVL, Grant Investrade Ltd (GIL) and a few other shareholders.

IMCL's FY2017 revenue grew to ₹ 599.5 crore from ₹ 497.8 crore, a year ago.


AIRTEL TO UP HOME B'BAND

Bharti Airtel is stepping up its investments in wired broadband, to counter Reliance Jio's GigaFiber FTTH. Airtel has 2 million wired broadband customers.

Speaking to analysts during the Q1 FY19 earnings c o n f e r e n c e call, MD and CEO Gopal Vittal said "There clearly is a big opportunity to expand home broadband. For the last couple of years, we have been rolling out about 500,000 to 600,000 home passes. This year, our plan is to step it up to close to 2 million."

Responding to whether Airtel will look at acquisitions in the cable TV space to compete with Jio, Vittal said "On the cable part, it is a bit speculative for me to answer that question. I think there are several challenges there in terms of the quality of the network, the permissions on the last mile fiber and so on and so forth."

Clearly, the wired broadband business is very profitable, yielding Airtel 40% to 45% EBITDA margin.

Airtel promises speeds of 300 Mbps and higher using FTTH and vectorisation.


VIVENDI CANCELS IPO

Vivendi - the media conglomerate has cancelled its plans for an IPO, "due to its complexity."

It has instead decided instead to sell upto 50% of its stake to completing the transaction within the next 18 months.

The sale is also surprising as UMG, which counts Taylor Swift, Katy Perry, Lady Gaga and The Rolling Stones among its roster, accounts for roughly 45% of Vivendi's revenues and more than 70% of its operating income.

Earlier valuations of UMG have placed its value at upwards of $40 billion, putting the more traditional music company above streamers such as Spotify.




GTPL HATHWAY Q1

Cable TV & broadband service provider GTPL Hathway's consolidated net profit for the quarter ended 30 June declined 4% to ₹ 13.3 crore.

Cable subscription revenue increased 8% to ₹ 168 crore. Placement revenue was up 2% to ₹ 66.1 crore & activation revenue jumped 23% to ₹ 23.2 crore.

Broadband subscription declined 1% to ₹ 35.9 crore.

Expenditure increased 6% to ₹ 219.4 crore. Pay channel cost rose 10% to ₹ 126.4 crore.

GTPL seeded 200,000 STBs in Q-1, taking total seeded STBs to 8.9 million. 200,000 active digital subscribers were added in Q-1, taking total active digital subscribers to 7.6 million. It added 110,000 digital paying subscribers to take the total digital paying subscribers to 7.11 million.

STBs seeded in Phases 1, 2, 3 & 4 were at 0.77 million, 2.22 million, 2.70 million and 3.21 million respectively.

During Q-1, average cable ARPU for Phase-1, 2, 3 & 4 were ₹ 103, ₹ 102, ₹ 63 and ₹ 54 respectively.

GTPL Hathway added 10,000 broadband subscribers in Q1, yielding a total of 290,000 broadband subs, each generating a monthly ARPU of ₹ 465.

GTPL launched GPON FTTH High-Speed broadband services @ 100 Mbps & 40 Mbps 'unlimited data' plans in select Gujarat cities. The price per month for 40 Mbps unlimited data is from ₹ 388-500 (net of taxes) and 100 Mbps unlimited data is in the range of ₹ 706-762 (net of taxes).


NDTV B'CAST TURNS PROFIT

In October 2017, Mukesh Ambani acquired more than 51% of the NDTV shares through his associated companies and trading funds.

NDTV has now announced that its standalone broadcast business has turned around with a net profit of ₹ 60 lakh for the quarter ended 30 June compared to a net loss of ₹ 15.94 crore in the corresponding quarter of the previous fiscal. This is the first profitable Q1 for NDTV since 2014.

Television media and related operations reported operating profit of ₹ 10.45 crore compared to a loss of ₹ 4.27 crore. Revenue from the segment dropped to ₹ 96.47 crore from ₹ 103 crore.

On a consolidated basis, NDTV a net loss of ₹ 28.8 crore as against ₹ 22.01 crore in the previous fiscal.



BSNL & MTNL: HUGE LOSSES

Despite B S N L cutting its expenditure b y thousands of crores, its FY 2017-18 losses feel by just ₹ 1 crore (0.02%) to ₹ 4,785 crore.

BSNL spends around half of its earnings on salaries to employees. In contrast Airtel's employee expenses are only 5% of revenues in Q1FY19.

"Since BSNL has incurred losses consecutively for the last 3 years, [it] has been declared 'Incipient Sick' under guidelines of Department of Public Enterprises (DPE)," Telecom minister Manoj Sinha said in the parliamentary reply. "Accordingly, action has been initiated by the DoT for preparation of revival/restructuring plan of BSNL," Sinha added.

MTNL, which operates only in Mumbai, Delhi & Mauritius, has also lost heavily, even though its spending was reduced by the hundreds of crores.



SITI DOES WELL

SITI Networks Ltd has announced good results for Q1-FY19, ending June 30, 2018. Operating EBITDA grew 146% to ₹ 54.9 Crore.

This was driven by a 26% surge in subscription Revenue to ₹ 214.9 crore. Expenses remained flat.

SITI has initiated a countrywide monetization increase drive, resulting in a 17% increase in ARPU. Subscription collection efficiency surpassed 93% end July and further increased to 97% by end July'18.

Siti added 3.5 lakh new digital subs, raising its active digital subscriber base to 11.7 Million.

To drive employee engagement and enhance operating efficiencies, SITI launched a customized app for its employees called "My SITI". This has helped to promote a high-performance culture across the organization through real-time monitoring and evaluation of various operational and strategic parameters. n