NXTDigital starts FY23 on a strong note

NXTDIGITAL Ltd., the media vertical of the global Hinduja Group announced its results for the first quarter of the current financial year FY23, at its Board meeting today. The company is India’s premier integrated digital platforms company, with a presence in digital television over cable, satellite (through India’s only Headend-In-The-Sky or HITS service), broadband, content syndication and teleshopping. It has also entered into a binding MOU with Thaicom Public Company Limited, to provide broadband-over-satellite and related services in India.

Financial Results

On a Consolidated basis, the Company achieved a revenue of Rs 279.1 crores for the quarter ended 30^th June 2022, as against Rs 266.6 crores for the corresponding quarter of the previous year and Rs 275.2 crores (excluding proceeds from sale of land) in the previous quarter. On a consolidated basis, the Company achieved an Earnings Before Interest, Depreciation & Taxes (EBIDTA) of Rs 54.1 crores for the quarter ended 30^th June 2022, as against Rs 51.2 crores for the corresponding quarter for the previous year and Rs 56.5 crores (excluding profit on sale of land) for the previous quarter.

Growth Drivers in Q1FY23

NXTDIGITAL has remained focused on rapidly building out digital products and solutions to cater to changing consumer preferences and market dynamics, whilst continuing to strengthen its customer footprint across the country.

Today, the media group covers over 4,500 pin codes in over 1,500 cities and towns – offering a host of digital products including digital television, broadband and OTT. It has expanded its award-winning NXTHUBs to another 40 towns and expects to close Q2 with 100 such NXTHUBs in key markets where connectivity remains a challenge. It’s unique integrated product of digital television, broadband and OTT drives customer retention whilst the aggregator-based “Strategic Alliance Partner” model continues to attract more ISPs to be a part of its broadband vertical.

Says Vynsley Fernandes, Manging Director and CEO at NXTDIGITAL “Our strategy for this fiscal is to continue to leverage our expanding digital product portfolio, vast national footprint and emerging technologies to drive growth. Our approach is to garner a greater share of the customer wallet across multiple services rather than focusing on ARPU growth of individual product verticals. On the other hand, we are putting our might behind our emerging technologies offerings like broadband-over-satellite as we look to expand our digital services even beyond India.”

Update on the Schemes of Arrangements

The Board of Directors of the Company, at their meeting held on February 17, 2022, had, inter-alia, accorded approval to the Draft Scheme of Arrangement between NXTDIGITAL Limited and Hinduja Global Solutions Limited and their respective shareholders. The Hon’ble National Company Law Tribunal has vide its Order dated July 29, 2022 directed convening of meeting of the Equity Shareholders of the Company on September 02, 2022.

As regards the second scheme, the Board of Directors of the Company at their meeting held on March 16, 2022 had inter alia accorded an in-principle approval for a scheme of arrangement i.e. merger of Hinduja Leyland Finance Limited with the Company.  Activities with respect to valuation and related matters are under progress.