In This Article:
Release Date: January 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GTPL Hathway Ltd (BOM:540602) reported a 4% year-over-year growth in total revenue for the quarter, reaching INR8,957 million.
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The company saw an increase in both active and paying subscribers in the cable TV segment, with a year-over-year addition of 200,000 subscribers.
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Broadband business added 37,000 new subscribers, marking a 4% increase year-over-year.
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The company is actively pursuing expansion opportunities beyond its traditional strongholds, aiming to increase its national footprint.
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GTPL Hathway Ltd (BOM:540602) has launched new services such as AI chatbot Viva and industry-first TV key cloud in collaboration with Nagra, enhancing consumer experience.
Negative Points
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The company faced challenges in customer addition and retention due to extended rain and floods, impacting operations.
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Despite an increase in broadband ARPU, the broadband ISP revenue only grew by 2%, indicating a discrepancy in expected revenue growth.
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Interest costs have increased due to higher overdraft utilization and borrowing for the hits project, affecting net profit.
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The company is facing competitive pressure from major players like Airtel and Jio, limiting pricing power in bundled services.
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There is uncertainty regarding the impact of broadcaster price hikes on consumer pricing and potential subscriber churn.
Q & A Highlights
Q: What is the opportunity size for GTPL Hathway from the BharatNet Phase 3 project? A: The BharatNet project is currently under judicial review. GTPL Hathway is participating and awaiting the outcome. Once resolved, the company will update investors on any developments. (Respondent: Unidentified_5)
Q: Can you explain the rising ARPU on the broadband side? A: The increase in ARPU to INR 465 is due to customer demand for higher packages. The company has introduced higher-speed packages, which are driving the ARPU increase. (Respondent: Unidentified_5)
Q: How does GTPL Hathway plan to compete with companies like Airtel and Jio in the bundled services market? A: GTPL Hathway focuses on creating value through its entertainment and broadband offerings. The company differentiates itself by offering competitive pricing and unique service combinations. (Respondent: Unidentified_5)
Q: What is the rationale behind making a subsidiary a wholly-owned entity? A: The move is part of a strategy to consolidate subsidiaries and streamline operations. The cash outflow for this transition is minimal, and it aligns with the company's long-term goals. (Respondent: Unidentified_5)