SITI Networks reports 24% growth in subscription revenue in Q2 FY2019
SITI Networks Limited, an Essel Group company, with over 55 million consumers and presence across 580+ locations in India, has seen a 24 per cent surge in its subscription revenue to Rs 2,548 million in Q2 FY2019, aided by the strong growth in Digital Subscription ARPU, which leapt 19 per cent. This ARPU growth is across DAS phases, with SITI’s strong presence in Phase 3 and 4 showing 27 per cent and 43 per cent growth, respectively.
In the quarter ending September 30, 2018, SITI continued its new customer acquisitions by adding 3 lakh new Digital Subscribers, with current Active Subscriber base at 11.75 million.
SITI’s operating EBITDA grew 2.52x over second quarter of last fiscal, a 24 per cent quarterly growth, and the highest in last 10 quarters, to Rs 682 million. SITI’s operating EBITDA margin also expanded by 2.1x to 18.2 per cent in Q2FY19.
On quarterly basis, SITI has demonstrated a significant growth on all the financial metrics. Operating EBITDA has jumped by 1.24x, while Operating Margins expanded 150 bps over the previous quarter. Subscription Revenue registered a sharp growth of ~19 per cent sequentially over the last quarter. With consistent focus on last mile operations, SITI achieved subscription collection efficiency of 95 per cent.
SITI has launched PlayTop, its first Hybrid Set Top Box, in line with its “Customer First” strategy. SITI will be introducing a range of innovative converged offerings over the coming quarters.
SITI announced its partnership with Paytm to provide multiple digital payment options to its customers and attractive cashback benefits in select areas. SITI Networks has also made Paytm’s digital payment facility available to its 24,000+ distribution partners across the country, who can make online payments through various modes on the SITI Networks website.
Supreme Court has paved way for the introduction of the new tariff order. Provisions of the order are aimed to increase transparency, and create a level playing field. In preparation for successful implementation of the Tariff Order, SITI has been working on Smart Tiered Packaging and has undertaken significant technological and process enhancements while ensuring training and education for all stakeholders.
While commenting on the results, Rajesh Sethi, CEO, SITI Networks Limited, said, “SITI’s Q2FY19 performance has been strong and phenomenal with all round growth across all operational metrics. 2.52x growth in Operating EBITDA and 2.1x expansion in the margins is a testament to strong operational focus of the team. SITI’s Digital Subscriber ARPU went up by 19 per cent and Subscription Collection efficiency improved to 95 per cent in this quarter. This ARPU leap has been broad-based across the country to ensure consistent growth in Subscription Income in the coming quarters. We are working with various partners across the spectrum to bring benefits of convergence to our customers.”
He further said, “New Tariff order enables customers to subscribe channels of their choice and brings pricing parity across various platforms. This is very positive move for the long term ARPU growth of the ecosystem. SITI is fully prepared to implement the Tariff Order and well aligned to drive EBITDA and margins expansion based on our profitable growth strategy.”