Internet service and cable TV provider Hathway Cable added 1 lakh broadband subscribers during the quarter ended September 30th 2016 (Q2 FY17), taking the total broadband subscriber base to 8.2 lakh users. Broadband subscriber base grew by 57% Year-on-Year (YoY) from 5.2 lakh subscribers in Q2 FY16. The company has a multi-system operator (MSO) license and operates under the Hathway Cable brand. It runs broadband business under Hathway Broadband, a wholly owned subsidiary of Hathway Cable.
For Q2 FY17, Hathway posted overall revenue of Rs 321.1 crore, up 6% QoQ from Rs 302.1 crore, and up 19% YoY from Rs 270.14 in the same quarter last year. The company posted a net loss of Rs 41.1 crore for the period, which widened from Rs 33.8 crore in the same quarter last year.
Revenue from broadband services stood at Rs 110.4 crore for the quarter, which is up 15% QoQ from Rs 104.6 crore. On a YoY basis, broadband revenues were up 67% from Rs 71.9 crore. Revenue from Cable TV operations were Rs 110.4 crore for the quarter, up 2% QoQ from Rs 107.7 crore, and up 18% YoY from Rs 93.8 crore.
-Broadband ARPU was Rs 740, up 9/% year-on-year
-Cable TV ARPU was at Rs 216, up 20% year-on-year
-21% of the 3.86 connections were subscribed to broadband.
– EBITDA margin was Rs 54. 9 crore, up 12% YoY, and up 11% QoQ
Other developments from Hathway
–Demerging broadband business: In September Hathway Cable said that its board of directors would consider demerging its broadband business. The company had been mulling hiving off the business since October last year. But at the time, the definitive terms and conditions of the demerger were still being evaluated.
–IPO for subsidiary: In August, Hathway’s board approved an Initial Public Offering for its subsidiary GTPL (Gujarat Telelink Pvt Ltd). The IPO for GTPM will be distributed via fresh issue of shares with an option for existing shareholders of GTPL to sell shares held by them. The company did not provide a timeline for the IPO.
Download: Financial results
Correngdium: The headline wrongly interpreted 3.8M subscribers as cable TV connections; these are no. of ‘Broadband Homes Passed”. We apologize for the error.