You are here: Home » News-ANI » Business
Business Standard

SITI networks' strong performance in FY19, operating EBITDA expands 2x to Rs 3001 Mn

Topics
Business Finance

ANI 

SITI Networks Limited (BSE

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 per cent.

Subscription revenue increased by 19 per cent to Rs 9,537 Mn in FY19, aided by improving monetization and up-selling 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 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 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.

"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 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", said Rajesh Sethi of SITI Networks Limited.

"SITI Networks maintained its consistent growth and grew its subscription revenue by 19 per cent 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 per cent", he added.

This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, May 30 2019. 19:22 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU