BENGALURU: Indian leading multi-system operator (MSO) Siti Networks Limited (Siti) reported 7.8 percent increase in revenue from operations at Rs 1,210.29 crore for the nine month period ended 30 December 2019 (9M 2020, YTD 2020) as compared to the Rs 1,122.71 crore for the corresponding nine month period of the previous year (9M 2019, previous nine month period). The company’s total expense for 9M 2020 increased 4.9 percent to Rs 1,330.30 crore (108.8 percent of Total Income) from Rs 1,267.81 crore (111,6 percent of Total Income) in the previous nine month period. Siti’s total expense across all major heads decreased 7.7 percent in 9M 2020, as compared to 9M 2019, but for pay channel, carriage share and related costs which increased by Rs 120.94 crore or 23.7 percent.
Sit reported a lower loss of Rs 117.87 crore in 9M 2020 as compared to a loss of Rs 140.36 crore in 9M 2020.
Siti claims in its earnings release that 9M 2020 operating EBITDA surged 1.24 times over similar duration of last fiscal, to Rs. 267.6 crore. The company attributes this jump to strict control over expenses and operating efficiencies. Siti says that its operating EBITDA Margin for 9M 2020 also expanded by 1.1 times y-o-y to 22 percent.
Siti says its subscription revenue for 9M 2020 grew 19.5 percent y-o-y to Rs. 868.7 crore, aided by the strong growth. Subscription ARPU leapt 1.8 times to Rs.128 per month. Total Revenue (excluding activation) also surged 12.7 percent y-o-y to Rs. 1218.9 crore for the same period.
Siti CEO Mr Anil Malhotra said: “We are focused on working closely with
our distribution partners for increased sweating of ground assets further through introduction of allied value-added services for our customers Siti Broadband with Zee 5, India’s fastest growing OTT app, gives both partners an opportunity to scale up our business ambitions, creating value for all our stakeholders with a focused and strategic approach."
Let us look at the other numbers reported by the company
Total Income for 9M 2020 increased 7.6 percent y-o-y to Rs 1,222,26 crore from Rs 1,135.11 crore in 9M 2019. Pay channel, carriage sharing and related costs in 9M 2020 increased 23.7 percent y-o-y to Rs 631.14 crore from Rs 510.20 crore. Employee benefits expense in 9M 2020 declined 7.6 percent y-o-y to Rs 57.83 crore from Rs 62.61 crore. Finance costs in 9M 2020 reduced 3.1 percent y-o-y to Rs 122.16 crore from Rs 126.05 crore. Other expense in 9M 2020 reduced 10 percent y-o-y to Rs 261.17 crore from Rs 290.35 crore.
Numbers for Q3 2020 as compared to Q3 2019
For the quarter ended 31 December 2019 (Q3 2020, quarter under review), revenue from operations increased 4.3 percent y-o-y to Rs 402.60 crore from Rs 385.92 crore in Q3 2019. Total Income increased 4.6 percent in the quarter under review to Rs 407.94 crore from Rs 390.11 crore. Loss for Q3 2020 at Rs 33.56 crore was lower than loss of Rs 35.41 crore in Q3 2019.
Total expense in Q3 2020 increased 4.9 percent to Rs 442.17 crore from Rs 421.70 crore, Excluding pay channel, carriage sharing and related costs, expenses in Q3 2020 declined 10.6 percent to Rs 227.75 crore from Rs 254.72 crore in Q3 2019. Employee benefits expense in Q3 2020 declined 9.5 percent to Rs 18.75 crore from Rs 20.71 crore in Q3 2019. Finance costs in Q3 2020 reduced 7.5 percent to Rs 38.06 crore from Rs 41.13 crore. Other expense in Q3 2020 decreased 13.4 percent to Rs 84.28 crore from Rs 97.33 crore.
