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 Q1 FY20.
Continuing with the strong performance from last fiscal, SITI reported growth in its Operating EBITDA by 1.5x to Rs.841 Mn in Q1 FY20. Capitalising on the growth opportunity provided by New Tariff Order, SITI has delivered by growing the revenue at a phenomenal rate while maintaining the strict control over the operational efficiencies. This manifested itself in Operating EBITDA Margin expanding significantly by 471 bps y-o-y to 21.4%.
- Operating EBITDA expands 1.5x y-o-y to Rs.841 Mn
- Operating EBITDA Margins jump 1.3x y-o-y to 21.4%
- Subscription Revenue increases 36% y-o-y & 29% q-o-q to Rs.2,932 Mn
- Total Revenue, excluding activation surges 19.6% y-o-y to Rs.3,925 Mn
- Digital subscriber ARPU leaps 2x y-o-y & 1.5x q-o-q to Rs125
Subscription revenue increased by more than 36% y-o-y to Rs. 2,932 Mn in Q1 FY20, aided by improving monetization and upselling better value offerings to our esteemed customers. Total Revenue (excluding activation) also surged ~20% y-o-y to Rs. 3925 Mn.
To better serve the subscribers under the new regime, SITI has created multiple offerings for the consumers which cater to multiple demographics and geographies.
As a result of these customer-oriented offerings more than 57% of the base opted for these curated MY SITI plans as it gives them the best of content and economic value with minimal effort which has resulted in Digital Subscriber ARPU leaping 2x y-o-y & 1.5x over the previous quarter to Rs.125. This transition has truly resulted in the choice belonging to the consumer now.
While commenting on the results, Mr. Rajesh Sethi of SITI Networks Limited mentioned:
''SITI has successfully started to incorporate the New Tariff Order to the very roots of our business and this is validated by the stellar results displayed in the first quarter of current fiscal. Our subscription revenue grew over 36% y-o-y with total revenue (excl. activation) increasing by more than 19% y-o-y. With the increase in collection & operational efficiencies we saw our Operating EBIDTA grow 1.5x y-o-y to INR 841 Mn and the EBIDTA margins subsequently rose 1.3x y-o-y to 21.4%. Our product strategy to provide the optimal entertainment choices to our subscribers is bearing fruit as the ARPU has grown 2x y-o-y and we are sure that this growth momentum will only grow stronger.''
Report By: Deepak Singhal