Cable digitisation magic: Hathway's profits soar
India's large cable TV MSOs are successfully fending off stiff competition from DTH
Hathway Cable & Datacom, among India's few large cable multi-service operators (MSOs), saw a remarkable turnaround in profits in 2012-13. While revenues rose 12% during the year to Rs 11.33 billion, operating profit soared over fourfold to Rs 1.08 billion vs Rs 0.24 billion earlier. Net profit was Rs 0.16 billion against a net loss of Rs 0.49 billion in 2011-12.
Indicating its higher leverage to finance digitisation, the company's long term borrowings more than doubled to Rs 6.69 billion in 2012-13 from Rs 2.7 billion earlier.
With 1.4 million two-way broadband enabled homes and control over more than 50% of the country's cable TV broadband market, Hathway was awarded "best Indian MSO" status by indiantelevision.com's Indian Telly Awards for its quality cable TV and broadband internet services
The company says that, in view of introduction of digitization, Indian MSOs are in the process of finalising fresh terms of revenue sharing with local cable operators through whom cable services are rendered to subscribers. There was a lot of subscriber hiding by local cable operators, which is expected to be much less after digitisation.
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