In This Article:
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
GTPL Hathway Ltd (BOM:540602) retained its position as the nation's largest MSO and is gaining ground in the fixed broadband market.
-
The company reported a healthy 10% year-over-year growth in total revenue for the quarter, reaching INR8,989 million.
-
The broadband segment saw a 4% year-over-year increase in revenue, standing at INR1,358 million.
-
The company has been awarded a new broadcasting license, expected to bring significant cost efficiencies.
-
GTPL Hathway Ltd (BOM:540602) continues to expand its market presence across India, aiming to increase its total addressable market.
Negative Points
-
The cable TV subscriber base saw only a small increase, with the pace of customer additions dropping significantly.
-
The broadband business experienced relatively slower growth, partly due to competition from telcos and the advent of 5G.
-
There was a dip in subscription income by 28%, impacting overall revenue growth.
-
The company faced increased depreciation and finance costs, contributing to a decrease in profit before tax.
-
Interest costs rose by 29% year-over-year, and the company moved from a net debt negative to a minor debt positive position.
Q & A Highlights
Q: Could you comment on the recent developments regarding the National Broadband 2.0 initiative? A: We are participating in the BharatNet project with LC Infra and expect to receive a purchase order within 30 to 45 days. This initiative will help enhance broadband infrastructure across the country, benefiting players like us who rely on both third-party and self-created infrastructure. (Unidentified_4)
Q: How do government initiatives in the broadband segment impact your expansion plans? A: Government initiatives are crucial in building digital infrastructure, which will aid our expansion. The new projects in various states will help us leverage existing infrastructure, allowing us to expand our broadband services more efficiently. (Unidentified_4)
Q: What are your revenue and margin guidance for FY26? A: We aim to achieve an 18% revenue growth and a 9% EBITDA growth, returning to our historical CAGR levels. We plan to improve subscriber additions in both cable TV and broadband segments, which will reflect in our financial performance. (Unidentified_4)
Q: How are you managing the price increases from broadcasters? A: We are working to absorb most of the cost increases internally and pass only a minimal portion to customers. This strategy is crucial in maintaining our subscriber base without significant churn. (Unidentified_4)