SITI Networks Results for Q4FY19 & FY19: Company's subscription revenue up by 19% to Rs 9,537 million

SITI Networks Q4 Results: SITI Networks Limited, an Essel Group company, has released its consolidated audited Financial Results for Q4FY19 and FY19 today, reporting growth in its operating EBITDA by 2x to Rs 3,001 Mn, according to a company statement filed with the BSE. The company has leveraged existing operating resources focusing on cost effectiveness and this is reflected in the operating expenses being flat on an annualised basis and declining on a quarterly basis. This manifested itself in Operating EBITDA margin expanding significantly by 912bps in FY19 to 21.2%, said the statement. SITI Networks's subscription revenue increased by 19% to Rs 9,537 Mn in FY19, aided by improving monetization and upselling better value offerings to customers.

Commenting on the results, Rajesh Sethi of SITI Networks Limited said, “SITI Networks maintained its consistent growth and grew its subscription revenue by 19% YoY in consonance with tariff order implementation. A twin focus on cost effectiveness and improved monetization helped us to deliver strong Operating EBITDA at INR3,001 mn, a growth of 2x and simultaneously expanding margins 1.8x to 21.2%.”

On implementation of tariff order, Rajesh Sethi, said, “Our unrelenting focus on systems and processes has enabled us to migrate our entire base to the new Tariff Order regime. We successfully managed to tide over this transition phase with the active support of our local business associates. This migration paves the way for strong and sustainable cash flows in the medium to long term as the sector outlook improves and the business model matures further. We are looking to shift our focus to product innovation with the aim of offering our customers an eclectic mix of entertainment options.”

In the quarter ended March 2019, SITI ended with an Active Subscriber base at ~8.2 Mn. There was transient churn in the customer base because of tariff order migration and prepaid implementation. The subscriber base is expected to revert to steady state levels in the medium term, said the company statement. 

SITI was intensely focussed on a calibrated migration to the new TRAI Tariff Order Regime and successfully implemented the same in conjunction with its business associates on a Pan India Basis, said the company, adding that the migration process entailed preparing and disseminating tailored “best fit” plans, offering broadcaster bouquets and a-lacarte options to our end customers, ensuring our systems and processes were effective and our operating teams worked in a synchronised manner.

"We made extensive use of digital mediums and our on-ground business associates to ensure customers were informed and empowered. Currently, a substantial number of our customers have constructed their own bespoke plans with the remainder being on SITI “best fit” plans; SITI is working closely with the regulatory authorities and industry peers to monitor the situation," it added.

Formerly known as SITI Cable Network Limited, SITI Networks 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.