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GTPL Hathway Limited Q1 FY '25 Earnings Conference Call Summary
Conference Call Details • Date: July 15, 2024 • Earnings Call Date: July 12, 2024 • Focus: Financial performance for the quarter ending June 30, 2024
Key Highlights • Subscriber Growth • Managing Director Anirudhsinh Jadeja reported nearing 10 million Cable TV subscribers. • Business Head Piyush Pankaj noted: • 6% year-on-year increase in active Cable TV subscribers. • 7% increase in Broadband subscribers. • Stable average revenue per user (ARPU) and rising data consumption.
• Financial Performance • CFO Saurav Banerjee reported: • 9% year-on-year revenue growth to INR 8,506 million. • Net profit of INR 150 million. • Reaffirmed credit rating of IND AA- from India Ratings.
Financial Insights • Finance Costs • Increase attributed to higher credit line utilization and operating lease costs (Ind AS 116). • Decrease in overall borrowings by INR 4.5 crores due to long-term debt repayments.
• Depreciation and Operating Expenses • Expected annual rise in depreciation by INR 25-30 crores due to capital expenditures. • Rising operating expenses anticipated due to business expansion and new B2B initiatives.
Market Concerns • Subscriber Additions and Profitability • Concerns raised about slow subscriber growth and increasing operating costs. • Pankaj expressed optimism about growth opportunities in cable and broadband segments.
Operational Performance • Operating EBITDA • Piyush Pankaj emphasized operating EBITDA as a reliable performance measure. • Previous year’s operational EBITDA was 24%, current quarter at 23%, expected to stabilize between 24% and 25%.
• Revenue Growth and Pricing Strategy • Consistent revenue growth expected for FY '25 and FY '26. • Plans for price hikes in strategic cable markets and focus on increasing ARPU.
New Product Launch • TVKey Cloud Product • Collaboration with Samsung allows access to GTPL's cable services on Samsung TVs without a set-top box. • Significant revenue potential targeting over 10 million subscribers.
Subscriber Additions and Pricing Strategy • Broadband Segment • New additions: 7,000 B2B and 3,000 B2C subscribers. • Strategic expansion of B2B efforts across seven states. • Price hikes planned through service bundling rather than individual price increases.
Conclusion • The call concluded with an invitation for further inquiries through investor relations advisors.
GTPL Hathway Limited Conference Call Summary (April 19, 2024)
Financial Performance • Quarterly Results: • Q4 revenue: Rs. 8,148 million (16% YoY growth) • Full-year revenue: Exceeded Rs. 30 billion (20% increase) • Subscriber Growth: • Broadband: 1 million subscribers • CATV: 9.5 million subscribers • ARPU: Stable broadband ARPU at Rs. 460 • Operating Margins: Pressure due to reduced deferred activation revenue and non-operating income.
Market Insights • Competition: Concerns raised about non-wired broadband services from Jio and Airtel. • Wired Broadband Growth: Projected significant growth in wired broadband subscribers.
Operational Updates • Leased Fiber Infrastructure: Increase attributed to reporting corrections and telco connections. • CATV Subscriber Stagnation: Year-on-year increase noted, but churn rates at 15-17%.
Future Projections • Revenue Guidance: Projected 17% CAGR in revenue; operational margins expected to rebound to 26-27% by FY25. • EBITDA Margin Target: Aiming for 24% to 26% operational margin for FY25.
Strategic Initiatives • GTPL Genie App: Relaunch expected by late April/early May; current subscribers increased from 40K to 75K. • Customer Engagement: App designed to enhance customer stickiness rather than generate significant revenue.
Industry Outlook • Broadband Penetration: Under-penetration in India; potential market growth from 22 million to over 100 million subscribers in 4-5 years. • CAPEX Plans: Maintaining CAPEX of Rs. 350 to 400 crores for business maintenance.
Conclusion • Management's Optimism: Confidence in future growth and margin recovery, with a focus on integrating services and expanding market presence.
GTPL Hathway Limited Conference Call Summary (January 12, 2024)
Key Management Present • Anirudhsinh Jadeja (Promoter and Managing Director) • Piyush Pankaj (Business Head) • Saurav Banerjee (CFO)
Financial Highlights • Subscriber Growth: • 1 million active broadband subscribers • 9.40 million digital cable TV subscribers • Revenue Growth: • Subscription revenue up 17% year-over-year • Consolidated revenue increased by 22% to Rs. 8,607 million • EBITDA Margin: • Current margin at 15.2% • Expected to improve to 17-18% by Q4 FY'24 and 20-21% by FY'25
Profitability Concerns • Declining profit after tax (PAT) noted over the past quarters • Management focused on improving profitability • Piyush Pankaj projected PAT improvement but no specific quarterly target
Subscriber Growth Challenges • Slow growth in broadband subscribers (15,000 increase last quarter) • External factors (e.g., World Cup) impacting growth • Future target of 25,000 to 35,000 new subscribers per quarter
Metro Cast Merger • Expected completion by mid-February 2024 • Financial obligations already addressed
Growth Projections • Acknowledgment of a slowdown in subscription revenue and EBITDA growth • Optimism for recovery in the next two years • Planned CAPEX of 400 crores for the year
Operating Margins Focus • Emphasis on operating margins over EBITDA margins • Maintained a 25% operating margin, slightly down from 26% the previous year • Significant investments in CATV and broadband to manage churn rates
Broadband Business Strategy • Focus on B2C operations in Gujarat and select capital cities • Anticipated growth in B2B sector, currently at 65,000 B2B subscribers • Projecting overall broadband subscriber base to reach 140-150 million by 2028
Future Outlook • Stabilization of active broadband subscriber growth at 12-13% annually • ISP revenue growth expected to settle at 16-17% • Anticipated benefits from upcoming events (IPL, World Cup) • Funding for capital expenditures through internal accruals, not external borrowing • Overall optimism about growth prospects in digital cable and broadband markets
GTPL Hathway Limited Q2 FY2024 Conference Call Summary
Announcement • Date: October 23, 2023 • Transcript availability for post-results conference call on Q2 FY2024 results (held on October 16, 2023). • Key management present: Anirudhsinh Jadeja (Managing Director) and Piyush Pankaj (Chief Strategy Officer).
Financial Highlights • Subscriber Growth: • 800,000 new digital cable TV subscribers. • 120,000 new broadband subscribers year-over-year. • Revenue: • Q2 FY2024 revenues reached ₹7,900 million (19% YoY increase). • EBITDA: • EBITDA of ₹1,351 million with a margin of 17.1%. • Management aims for a 20% EBITDA margin by Q4 FY2024.
Management Insights • B2B Revenue Growth: Expected to rise to 15% YoY from 10%. • Depreciation Increase: Attributed to Metro Cast asset consolidation. • Advertising Margins: No margins from advertisements; subscriber growth noted. • Broadband ARPU: Focus on volume growth; significant growth in wired broadband expected. • Subscription Revenue Growth: Projected sustainable growth of 18-21%.
Strategic Plans • Acquisition Strategy: Balanced approach of 50% organic growth and 50% acquisitions. • Future Projects: Plans for government contracts related to Bharat Net Project. • GTPL Genie Product: Gaining traction; plans for relaunch to enhance appeal.
Market Position and Expansion • Cable Business: Management sees growth potential despite industry stability. • Broadband Sector: Identified as a "sunrise sector" with significant growth potential. • Expansion Plans: Active in 22 states, with a focus on broadband in 9 states. • Revenue Guidance: Projected growth of 18-28% for FY2024-2026.
Conclusion • Management expressed confidence in growth strategies and invited further inquiries through investor relations.
GTPL Hathway Limited Conference Call Summary (July 21, 2023)
Financial Results Overview • Date of Call: July 17, 2023 • Quarter Ending: June 30, 2023 • Key Management: Anirudhsinh Jadeja (Managing Director), Piyush Pankaj (Chief Strategy Officer) • Performance Highlights: • Largest multi-system operator in India • Acquisition of 34.34% stake in Metro Cast, increasing to 50.10% by December 2023 • Record quarterly revenues: Rs. 7,806 million (21% YoY increase) • 13% increase in broadband revenue • Growth in digital cable TV and broadband subscribers
Q&A Session Insights • Revenue Breakdown: • CATV revenue from subscribers and MCOs • Broadband revenue from broadband subscribers • NTO 3 contributing to 8-9% growth in subscription income • Capital Expenditure (Capex): • Total capex of Rs. 450 crores for the year • Rs. 200 crores for cable, Rs. 250 crores for broadband • Subscriber Growth Strategy: • 50% growth from acquisitions, 50% from organic increases • Targeting approximately 1 million year-on-year increase
Metro Cast Acquisition Details • Subscriber Inclusion: 450,000 Metro Cast subscribers not included in current figures • Operating Income Projection: Assurance to meet Rs. 600 crores target despite current quarter's Rs. 125 crores • Administrative Expenses: Acknowledgment of rising costs with plans to stabilize
Technological Advancements and Market Position • Fiber vs. Wireless: Emphasis on Fiber to the Home (FTTH) as the most reliable solution • NTO Impact: Expected 8%-10% growth in cable TV ARPU • Market Potential: Only 35 million homes have wire broadband access; potential for 100 million subscribers in five years
Conclusion • Customer Retention: Importance of engaging existing cable customers transitioning to broadband • Urban vs. Rural Focus: Cost benefits of serving urban high-rise buildings • Commitment to Growth: Reaffirmation of sustainable growth strategies by management
GTPL Hathway Limited Q4 and FY23 Earnings Conference Call Summary
Announcement Details • Date of announcement: April 21, 2023 • Conference call date: April 17, 2023 • Key management present: • Anirudhsinh Jadeja (Managing Director) • Anil Bothra (CFO)
Financial Performance Highlights • Subscriber Growth: • Digital cable TV subscribers: 8.95 million • Broadband subscriber increase: 11% year-over-year • Revenue and Profit: • Consolidated revenue: ₹27,140 million (12% increase) • Net profit: ₹1,145 million • Dividend: • Recommended dividend: ₹4 per equity share
Key Discussion Points • GTPL Genie+ Service: • Performance and impact of online streaming on subscriber behavior discussed. • Subscriber Acquisition and Costs: • ARPU increase from ₹400 to ₹460 attributed to higher-speed packages. • Pay channel costs expected to rise by 2-3% annually. • Consistent capex investment of ₹450-500 crores annually for three years.
Concerns Raised • EBITDA and Investments: • Declining EBITDA despite significant investments; influenced by lost activation revenue. • Projected EBITDA growth of 13-14% based on historical trends. • Subscriber Churn: • CATV sector churn rate at 15-16%; ongoing investments needed to counteract churn.
Future Strategies • Capex Allocation: • ₹468 crores capex for FY23 focused on broadband and technology enhancements. • Subscriber Base Maintenance: • ₹50-60 crores for cable and ₹70-80 crores for broadband maintenance. • Transition to FTTH: • 75% of home passes converted; ongoing optical fiber project.
Financial Projections • EBITDA Targets: • Target of ₹600 crores for FY24, with a 10% growth from the previous year. • ARPU and Profit Margins: • Increase in ARPU expected to enhance profit margins.
Investor Concerns • Valuation and Shareholder Value: • Concerns about high promoter shareholding affecting minority shareholders. • Management committed to improving business performance to enhance valuation.
Conclusion • Management emphasized ongoing engagement with investors and the importance of business performance in reflecting share prices.
GTPL Hathway Limited Q3 FY'23 Results Conference Call Summary
Announcement Details • Date of announcement: January 18, 2023 • Conference call date: January 13, 2023 • Key management present: • Anirudhsinh Jadeja (Managing Director) • Anil Bothra (CFO)
Company Performance Highlights • Subscriber Growth: • Digital cable TV subscribers: 8.90 million • Broadband subscriber growth: 17% year-over-year • Financial Performance: • Revenue growth: 15% year-over-year • Consolidated revenue: INR 7,050 million • Net profit: INR 376 million • New Product Launch: • GTPL Genie+: OTT app aggregation product
Management Insights • Concerns Raised: • Declining ARPU and CATV business performance • Management Responses: • ARPU decline attributed to new market expansion • Margin compression due to costs of new market operations • High expenses expected to stabilize with revenue growth
Subscriber and Market Strategy • Broadband Growth: • Recent growth driven by B2C; B2B contributions expected soon • Capital Expenditure: • INR 355 crores spent in first nine months; additional INR 100 crores planned • Future Expectations: • Margin expansion anticipated back to 10-12% • Target of over one million subscribers in new cable TV markets
Industry Outlook and Legal Matters • NTO-3 Implementation: • Optimism for industry benefits similar to NTO-1 • Legal Status: • Ongoing contestation of AGR dues in court • Negotiation Position: • Strong position to mitigate rising pay-channel costs
Company Achievements • Subscriber Growth Over Six Years: • Fivefold increase in broadband subscribers • 2.6x increase in cable customers • Fivefold revenue growth • Financial Health: • Consistent dividend payments for six years (40% payout last year) • Net-debt free status after repaying INR 400 crores in debt • Future Discussions: • Invitation to discuss FY '23 annual results in April