Siti Networks's posts 19% rise in subscription revenue

Essel Group company Siti Networks Ltd, one of India's largest multi-system operators (MSO), reported a 13% surge in total revenue (excluding activation) to Rs 1,418.6 crore for the financial year (FY) 2018-19. Operating earnings before interest, tax, depreciation and amortisation (Ebitda) increased two times to Rs 300.1 crore for the full year.

Leveraging existing operating resources and focus on cost-effectiveness reflected in the operating expenses being flat on an annualised basis and declining on a quarterly basis. Accordingly, operating Ebitda margin expanded significantly by 912 basis points (bps) in FY19 to 21.2%.

One basis point is a hundredth of a percentage point.

Rajesh Sethi, chief business transformation officer, Siti Networks Ltd, said, the company maintained its consistent growth and grew its subscription revenue by 19% year on year (YoY) in consonance with tariff order implementation. "A twin focus on cost-effectiveness and improved monetisation helped us to deliver strong operating Ebitda while simultaneously expanding margins by 1.8 times to 21.2%," he said.

Subscription revenue for the full year increased to Rs 953.7 crore aided by improving monetisation and upselling better value offerings to customers.

In the quarter ended March 2019, Siti ended with an active subscriber base at around 8.2 million. There was transient churn in the customer base owing to tariff order migration and prepaid implementation.

"Our focus on systems and processes has enabled us to migrate our entire base to the new tariff order regime. We successfully managed to tide over this transition phase with the active support of our local business associates. This migration paves the way for strong and sustainable cash flows in the medium to long term as the sector outlook improves and the business model matures further. We are looking to shift our focus to product innovation with the aim of offering our customers an eclectic mix of entertainment options," said Sethi.