SITI Networks operating EBITDA up by 146% at Rs 549 Mn in Q1FY19

SITI Networks Limited today released its consolidated financial results for Q1FY19, ending June 30, 2018, maintaining persistent elevation in Operating EBITDA by reporting 146% growth over first quarter of last fiscal. The company had stated Operating EBITDA of Rs 549 Mn in the first quarter as against Rs 223 Mn on Y-o-Y basis. 
 
The company’s Operating EBITDA Margin expanded by 892 bps to ~17%, driven by subscription revenue surge of 26.3% to Rs 2,149 Mn and nearly flat growth in expenses, the statement said.  
 
SITI's country-wide monetization increase programme in June 2018 has resulted in a 17% increase in ARPU. The company has also improved its subscription collection efficiency, surpassing 93% in June 2018 exit, which has further risen to 97% exit July’18, it added.  
 
Further, the company’s active digital subscriber base also reached 11.7 Mn by end of the first quarter with 3.5 lakh fresh additions. The company now serves ~55 Mn+ consumers in ~580+ locations across the country. SITI’s HD base also increased to 3.56 lakh by adding 41,000 subscribers in the quarter. 
 
SITI is working on Smart Tiered Packaging to offer customers bespoke options and great value, said the statement adding that it will further help SITI in implementing the New Tariff Order regime later in this fiscal. 
 
Commenting on the results, Rajesh Sethi of SITI Networks Limited said, “SITI had a great start to FY19 with strong improvement across all operational metrics. Our “Customer First” strategy helped drive superlative 146% Operating EBITDA growth coupled with expansion of 892 bps in the margins. While we increased our Subscription Revenue nearly 26% year on year, we have further initiated an ARPU increase program and the results will be visible in the coming Quarters." 
 
"With the New Tariff Order notification, we are well positioned to move to the new regime. Our systems and processes are ready for this seismic transformation of last mile operations," he said, adding "In FY19, we intend to drive efficiencies along with solid EBITDA and Margins growth, in line with our core strategy of profitable and sustainable growth.” 
 
The company has undertaken significant technological and process enhancements for its Subscriber Management System while initiating training and education modules for all stakeholders on the New Tariff Order. Besides, the company has also implemented the “eMIA Initiative” to ensure digitization of agreements with all partners. 
 
To drive employee engagement and enhance operating efficiencies, SITI launched a customized app for its employees called “My SITI”, to promote a high-performance culture across the organization through real-time monitoring and evaluation of various operational and strategic parameters. 
 
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SITI Networks Limited is a part of the Essel Group, which is one of India's leading business houses with a diverse portfolio of assets in media, packaging, entertainment, technology-enabled services, infrastructure development and education.