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SITI Networks Q1 FY19 operating EBITDA up by 146% at Rs 549 mn

In line with SITI Networks Limited’s profitable growth strategy, the Multi System Operator (MSO) has maintained persistent elevation in operating EBITDA at Rs 549 million in Q1 FY2019 as against Rs 223 million, recording a growth of 146 per growth. The company’s operating EBITDA margin expanded by 892 bps to ~17 per cent. This has been driven by subscription revenue surge of 26.3 per cent to Rs 2,149 million and nearly flat growth in expenses. 

SITI reported a 15 per cent hike in its Q1 FY2019 total revenues to Rs 3,282 million. 

The company’s active digital subscriber base also reached 11.7 million by the end of the first quarter with 3.5 lakh fresh additions. The company now serves ~55 million+ consumers in ~580+ locations across the country. SITI’s HD base also increased to 3.56 lakh by adding 41,000 subscribers in the quarter. 

The MSO has initiated a country-wide monetisation increase programme in June 2018. This has resulted in a 17 per cent increase in ARPU. The company has also improved its subscription collection efficiency, surpassing 93 per cent in June 2018 exit, which has further risen to 97 per cent exit July 2018. 

In preparation for the New Tariff Order, SITI is working on Smart Tiered Packaging to offer customers bespoke options and great value. This will further help SITI in implementing the New Tariff Order regime later in this fiscal. The company has undertaken significant technological and process enhancements for its Subscriber Management System, while initiating training and education modules for all stakeholders on the New Tariff Order. 

As an industry first, SITI implemented the ‘eMIA Initiative’ to ensure digitisation of agreements with all partners. 

Commenting on the results, Rajesh Sethi, CEO, SITI Networks Limited, said, “SITI had a great start to FY19 with strong improvement across all operational metrics. Our ‘Customer First’ strategy helped drive superlative 146 per cent operating EBITDA growth, coupled with expansion of 892 bps in the margins. While we increased our subscription revenues by nearly 26 per cent year on year, we have further initiated an ARPU increase programme and the results will be visible in the coming quarters.” 

He further said, “In FY19, we intend to drive efficiencies along with solid EBITDA and margins growth, in line with our core strategy of profitable and sustainable growth.”

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