SITI Networks continued its strong growth trajectory in Q3 FY19: Rajesh Sethi
SITI Networks Limited, an Essel Group company, with 55 million+ consumers and presence across 580+ locations in India, has reported a spike of 21.4 per cent YoY in its subscription revenue for the third quarter ended December 31, 2019 to Rs 2,571 million, aided by the steady growth in digital subscription. Nine-month subscription revenue grew even faster at 24 per cent and was at Rs 7,268 million.
In Q3 FY2019, SITI ended with an Active Subscriber base at 11.55 million. SITI added 36,000 HD customers and currently has an active HD subscriber base of 4.24 lakh.
On the back of disciplined execution, SITI’s Operating EBITDA grew by 1.4x QoQ and 1.9x YoY. SITI’s Operating EBITDA Margin also expanded significantly by 975 bps YoY to 24.5 per cent in Q3 FY2019. This was also supported by flattish operating expenses on a YoY basis and effecting a reduction of 7 per cent QoQ.
Blended ARPU increased substantially by 19 per cent YoY. This ARPU improvement was broad based across phases, with SITI’s ubiquitous presence in Phase 3 and 4 showing 23 per cent and 35 per cent growth, respectively. SNL also ensured subscription collection efficiency of 94 per cent in Q3 FY2019.
While commenting on the results, Rajesh Sethi of SITI Networks Limited, said, “SITI Networks continued its strong growth trajectory and grew its 9-month subscription revenue by 24 per cent YoY. This, coupled with leveraging inherent operational synergies, allowed us to deliver stupendous 9-month Operating EBITDA at Rs 2,161 million, a growth of 118 per cent YoY. Simultaneously, a focus on prudence and lean operations expanded Operating EBITDA margins 1.9x to 20 per cent.”
Sethi further said, “We made extensive preparations for a considered migration to the new tariff order regime with a focus on customer choice, business associate exigency and regulatory compliance. The functionality of our Subscriber Management System was significantly enhanced to allow for seamless transition.”