Hathway’s performance from cable TV, broadband biz in Q2
MUMBAI: Multi system operator (MSO) Hathway Cable and Datacom’s standalone EBITDA has jumped 20% at Rs 59.8 crore during the quarter ended 30 September compared to Rs 50 crore in the trailing quarter. The company’s standalone result includes only the broadband business as the cable TV business has moved to a wholly owned subsidiary Hathway Digital. The company’s net profit fell 44% to Rs 15.3 crore as against Rs 27.3 crore.
Broadband subscription remained flat at Rs 131.1 crore compared to Rs 129 crore. Total expenditure declined 3% to Rs 77.2 crore from Rs 79.9 crore. Hathway added 40,000 broadband subscribers to take its total base to 700,000 compared to 660,000 in the trailing quarter.
ARPU saw a decline to Rs 717 from Rs 730 in the trailing quarter. Total passed increased to 4.98 million from 4.6 million. The company said that the normalisation of consumer ARPU is due to increase in higher pay term plans.
It also said that there is increased consumer stickiness due to better VFM on these long-duration pack. Hathway has also upgraded its tech infrastructure to handle higher network traffic coming out of 50% increase in speed and 200% increase in data capacity. The minimum data limit across the country was increased to 200 GB/consumer/month.
45% of its consumers have monthly data limits of 1,000 GB. Average GB/consumer/month has increased to 98 GB in the month of October. It has partnered with Microsoft to give 1 TB cloud storage free to all its yearly consumers.
The process of upgrading Docsis 3.0 technology to Docsis 3.1 is in progress to further enhance customer experience. Docsis 3.1 is the latest global technology for offering high-speed broadband over cable. GPON FTTH Parallel network being deployed in High Potential High Penetrated Docsis home passes to increase market share by offering 200mbps – 500mbps speed to premium consumers.
It is also using Microsoft CRM to use digital tools to enhance customer experience and implement preventive churn management. Cable TV business Hathway’s EBITDA from cable TV business jumped 22% to Rs 33.1 crore compared to Rs 27.2 crore in the trailing quarter driven by a strong revenue growth and stability in costs.
EBITDA margin improved 200 bps to 14%. Total income increased 4% to Rs 244.9 crore from Rs 236.5 crore. Subscription income jumped 6% to Rs 140.1 crore from Rs 132.5 crore.
Total expenditure remained flat at Rs 211.8 crore as against Rs 209.3 crore. Pay channel stood at Rs 138.5 crore an increase of 2% compared to Rs 135.2 crore. Hathway’s cable TV base stood at 7.5 million while the total set top boxes (STBs) was 7.2 million.
The total seeding in DAS Phase I, II, III, and IV are 1.6 million, 2.3 million, 2.4 million and 0.9 million respectively. ARPU from Phase II increased 3% to Rs.
98 (+3%) while Phase III ARPU was up 5% to Rs 58. The company has kick-started Phase IV monetisation with Rs 41.
Hathway Connect implementation has improved from 56% in Q1 FY18 to 61% in Q2 FY18.
Hathway Connect implementation, the company said, has created a change in payment habits of business partners.
In September 2017, 74% in terms of volume and 46% in terms of value of the transaction, is effected by LCOs to the company through digital mode.