Siti Networks reports Rs 93 cr operating profit on strong subscription
Ebitda margins expanded significantly by 975 bps YoY to 24.5%. Subscription revenue spiked 21.4% on-year to Rs 257.1 crore in Q3
Siti Networks reported 1.9 times on-year increase in operating earnings before interest, tax, depreciation and amortisation (ebitda) at Rs 93 crore for the December quarter of fiscal 2019. Total revenue, excluding activation increased 12% over last year to Rs 379 crore.
Operating (ebitda) margins expanded significantly by 975 basis points (bps) YoY to 24.5%. Subscription revenue spiked 21.4% on-year to Rs 257.1 crore in the third quarter, aided by the steady growth in digital subscription.
Subscription revenue for the nine months grew faster at 24% and was at Rs 726.8 crore. Blended average revenue per user (Arpu) increased substantially by 19% on-year. This Arpu improvement was broad based across phases, with Siti’s ubiquitous presence in Phase III and IV showing 23% and 35% growth respectively. The company also ensured subscription collection efficiency of 94% in the December quarter of current fiscal.
“This, coupled with leveraging inherent operational synergies allowed us to deliver stupendous nine months operating ebitda at Rs 216.1 crore, a growth of 118% on-year. Simultaneously, a focus on prudence and lean operations expanded operating ebitda margins 1.9x to 20%. 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,” said Sethi. adding that the functionality of Siti’s subscriber management system was enhanced to allow seamless transition.
CLEAR PICTURE
- Ebitda margins expanded significantly by 975 bps YoY to 24.5%. Subscription revenue spiked 21.4% on-year to Rs 257.1 crore in Q3
- SNL’s nine months subscription revenue grew by 24% YoY