Key highlights

On Y-o-Y basis, for the quarter ended December 2016, consolidated operating revenues grew 14% at Rs 303 crore (IGAAP accounting method). The loss at net profit level stood at Rs 42 crore against loss of 48 crore in the corresponding quarter of last year.

Activation revenue de-grew 39% QoQ to Rs 19 crore (IGAAP accounting method).

Broadband revenue jumped 4% QoQ to Rs 21 crore. (IGAAP accounting method).

Subscription cable revenue jumped 15% QoQ to Rs 172 crore. (IGAAP accounting method).

Placement revenue was flat at Rs 97 crore QoQ(IGAAP accounting method).

Tv shop revenue decreased 38% QoQ to Rs 7 crore. (IGAAP accounting method).

TV shopping business impacted by demonetization and hopes pickup gng fwd. Rs 2 crore EBIDTA loss by TV shop business in Q3.

Strong performance in DAS 3 digital : Monetisation @ 65 incl. taxes in Dec'16

Phase wise EBITDA (pre- activation)

DAS 1 : at 30+%

DAS 2 : at 19%

DAS 3 : EBITDA break even

Approx. 200k boxes deployed in Phase 3 & 4 in Q3

Delhi high court finally discards all cases related to digitalization. March 2017 – deadline by government for complete digitalization. .

Draft notification will be filed in Supreme Court by TRAI.

ARPU – for phase 1 at 125, phase 2 at 95 and phase 3 at 65 per box.

5.3 mn total boxes seeded in phase 3 and 4.

16% EBIDTA margin for cable business in Q3.

Rs 2200 crore total capital deployed on digitalization.

Maintenance capex is low at 2-2.5% in cable business gng fwd.

13 mn total subscribers. Total digital subscribers no is - 10.2 mn out of which 5 mn in phase 1 and 2, 4.7 in phase 3 and 0.5 mn boxes in phase 4.

Cable ARPU excluding taxes are – Rs 111 phase 1, Rs 81 phase 2 and Rs 53 phase 3.

Rs 75 cable Exit ARPU in UP in December. It was Rs 30-35 some 2 qtrs back.

Paying subscriber base :- 3.8 mn phase 1 and 2, phase 3 is 4.1 mn and phase 4 is 0.5 mn

Phase 1 profitability at EBIDTA level is at 30% and phase 2 at 20%.

The mgmt expects STB box prices to go down by 10%, now its at Rs 1400 and earlier during phase 1 it was Rs 2200-2400 on landed basis.

Phase 4 – In next 10 months time the company can clock Rs 74 ARPU.

Activation income is 100% cash

Activation revenue is recognized over 8 years from Q2 instead of 4 years

Broadband EBITDA break even for the full quarter

Broadband – planning to launch in 15 to 20 new towns in next 6 to 9 months

Broadband - Added ~20k Subscribers in Q3. Total sub base at 159k, Homes passed at 864K. ARPU for the quarter at Rs 752. Average Monthly Consumption is 59 GB per Household

Broadband - Focus on town where Den cable is there which will improve margin and first mover advantage.

All broadband rollout is in Delhi and small in Kanpur. Smaller town realization is better than bigger cities due to competition in broadband

40% of broadband subscriber base is non Den home.

35% EBIDTA broadband business can give.

Net Debt reduced to Rs 183 crore

142 crore equity infusion from Goldmansach which helped in reduction in debt

The mgmt said that in next couple of year PAT will turn positive as subscription income improves with improvement in collection.

12-13% is bandwidth cost as a percentage of revenue.

Going forward the mgmt big focus is : 1) OTT – will soon see an announcement in this direction. 2) Focus on HD service and seeding of HD boxes. Keen to collect some extra income from HD service. 3) Working on 4K technology and box development is already in progress. In next 6-8 months will discuss on 4K technology and mid of 2017 will be able to give 4K boxes services.

Broadband – 20 cities so roll out in 8-9 cities and smaller 15-20 town where no one broadband service provider is present or only BSNL is present. Capex for each town will cost Rs 1-1.5 crore.

Capex on cable will be Rs 60-70 crore on remaining 2-2.5 mn box which need to be seeded.

HD boxes will not be subsidies.