SITI Networks Limited (BSE: 532795, NSE: SITINET), an Essel Group company, with presence across 580+ locations in India, has released its Consolidated audited Financial Results for Q4FY19 & FY19.
On the back of sustained efforts in FY19, SITI reported growth in its Operating EBITDA by 2x to Rs.3,001 Mn. Leveraging existing operating resources and focus on cost effectiveness 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%
Subscription revenue increased by 19% to Rs. 9,537 Mn in FY19, aided by improving monetization and upselling better value offerings to our esteemed customers
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. 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. The migration process entailed preparing and disseminating tailored “best fit” plans, offering broadcaster bouquets and a-la-carte 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
Customer Care: To enhance customer experience, there was a major engagement by our multi lingual customer service teams. Requests on social media (Twitter, Facebook), website, SITI App, e-mails, consumer helpline related were dealt with on priority in line with our ethos of “Customer First”- being an agile and responsive organization
Mr. Rajesh Sethi, on implementation of Tariff Order:
"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".
While commenting on the results, Mr. Rajesh Sethi of SITI Networks Limited mentioned: "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%"
Report By: Saurabh Datta