Slides
Page 1
Q3 & 9M FY25 Results Update GTPL Hathway Limited
Page 2
2 Table of Contents Company Overview01 3 Industry Dynamics & Growth Strategy02 9 Key KPIs03 13 18 05 Standalone Financials 22 Consolidated Financials04
Page 3
3 Company Overview
Page 4
Leader Across Key Markets 4Sources : * Performance Indicators Report, TRAI ** Independent third party Report 01 Commenced Business in 2006 #Leading private Wireline Broadband Player #No. 1 in Gujarat** #Crossed 1 Mn Broadband subscribers in FY24 04 #No.1* MSO in India #No.1 MSO in Gujarat #No.2 in West Bengal 03 05 # Significant presence in Maharashtra, AP , Telangana, Tamil Nadu & North-East # Footprint in Himachal Pradesh in Q4FY24 02 Footprint in 1,500+ towns across 23 States Connecting 12+ Mn Households
Page 5
Value Creation Over The Period Of Time Cash Positive Free Cash Flow (FCF) generated for last 7 years Net Worth Net worth increased by 3x in last 7 years Consistent Performance • PAT Positive for last 7 years • IND AA-/Stable • IND A1+ (WC) by ‘India Ratings’ Subscriber Base ~1.6x growth in last 7 years for Digital Cable TV ~4.2x growth in last 7 years for Broadband CAGR Growth over last 7 years • Revenue : ~17% • EBITDA : ~7% Growth Dividend Consistent Dividend paying history for last 7 years 40% dividend for FY24 5
Page 6
Enhanced Infrastructure 6 Headend Infra • Mother Headend in Ahmedabad, Gujarat serves as epicenter for nation wide services • 2nd Headend in Kolkata, West Bengal to enhance coverage and service quality in Eastern India • Distributing 970+ channels including 97+HD channels across India Fiber Infra Vast Optical Fiber • Owned :1,00,000+ KMs • Leased : 16,000+ KMs NOC Infra Network Operating Centre (NOC) in Ahmedabad, Gujarat forms the backbone of operations ensuring smooth delivery of services to customers across the country Office Infra 326 offices across India to manage operations
Page 7
Technology Partners – Best in Industry 7 The brand names mentioned are the property of their respective owners and are used here for identification purpose only • CPE- Consumer Premises Equipment; ** NOC- Network Operation Centre • *** SMS - Subscriber Management System; # BSS - Business Support Systems; ## ERP- Enterprise Resource Planning Security NOC**Headend CPE* Inhouse BSS Apps# Database SMS*** Cloud Infrastructure ERP## Digital Presence Digital Partner Digital Service Partner
Page 8
Inherent Strengths 8 • Launched Consumer application “GTPL Buzz” with features such as Live TV, Distro TV and Blacknut Cloud Games • GTPL Genie : Bundle of Digital Cable TV + OTT • Business App in Vernacular Languages • Industry first Launch of Live TV on Samsung Connected TVs using TVKey Cloud Pioneer Offerings 02 • 47,000+ Business Partners • 200+ Broadcasters • 1,750+ Enterprise Clientele • 30+ Government Projects Preferred Partner 01 • Strategic partnerships with industry leaders like Oracle, Nokia, Aprecomm, Nagra, Broadpeak and Harmonic • GIVA – AI chatbot integrated in consumer app and website for providing seamless selfservice, support & customer assistance Leveraging Technology 03 • Consistently working on strategies for expanding and entering new markets • Enhancing market presence through various initiatives and new product launches Growth Initiatives 05 • Covering 23 states thus providing High-Speed Broadband upto 200 Mbps & premium Digital Cable TV services nationwide • Better Negotiation Power backed by largest subscriber franchise • Commanding presence in key markets through deep coverage Pan India Presence 04 • Deliver the highest number of total channels from the headend combined with a seamless blend of OTT services • 970+ Tv Channels, 97+ HD Channels, 130+ Company Owned and Operated Platform Services Huge Catalogue for Entertainment 06
Page 9
9 Industry Dynamics & Growth Strategy
Page 10
Huge Runway for Growth 10 Total TV households that can be targeted ~180 Mn households* GTPL Hathway’s Cable Subscribers – 9.60 Mn Natural Growth from TV dark households buying a TV - as households come out of poverty line with rise in income: 70 to 80 Mn households* Shift of DTH viewers to cable TV since quality of broadcast and no. of channels offered have become at par post digitisation:- ~60 Mn households* Industry dynamics favouring market consolidation in favour of organised players - MSO registration cancellation as well as shift from unorganised players presents opportunity for further ~40 Mn households* *Source:, FICCI-EY 2024 Report, Global Data, ITU, Statista Company Estimates, TRAI report dated 01st Jan 2025 Total broadband connections that can be targeted ~150 Mn households* GTPL Hathway’s Wireline Broadband Subscribers – 1.0+ Mn India has one of the lowest fixed broadband penetration. September 2024 wired broadband subscribers stood at 43.64Mn as per TRAI. With ~325 Mn households in India – current subscribers represent ~14% penetration which is far lower than penetration in developed nations. 0.7 24.9 10.5 18.3 22.2 35.3 17.8 Africa Americas Arab States Asia & Pacific CIS Europe World India 2.4* Number of fixed broadband subscriptions per 100
Page 11
• Online payment mode available for instant activation of services. • Availability of additional touch points for customer interaction including WhatsApp, Social Media, Website and Consumer Application • Distribution of Content (Broadcasting & OTT) to be available through GTPL at competitive prices • Availability of extensive local content through platform channels in multiple languages • Live TV channels & Distro TV service available on mobile devices without any additional cost via GTPL Buzz App • Opportunities to add and consolidate smaller/regional players catering to ~40 Mn Cable TV Households • Increase in compliances leads to consolidation of industry & also triggered by cancellation of licenses by MIB of non-compliant MSOs. Strategies to Enhance Cable TV Business 11 INORGANIC ACQUISITIONS CONTENT AVAILABILITY USER FRIENDLY SERVICES RURAL INDIA TO DRIVE GROWTH • Increasing demand from rural India for TV sets will be a key contributor to CATV growth • Regional content is preferred in rural India and especially in southern markets. Original ideas from the south, both scripted and non-scripted, will continue finding resonance across India. TV brands and characters will expand their reach more effectively with the world of social media
Page 12
Multiple Growth Levers for Broadband Business 12Source: Report by Internet and Mobile Association of India (IAMAI) and KANTAR; Wired Broadmand Report by TechSci Research and marketxcel Acquiring Customers • Increased Focus on B2B model • Digital and broadband initiatives by Government across India • Tapping rural Gujarat market in the digital push Market Size & Geographies Driving Growth • Potential to convert 12+ Mn GTPL Digital Cable TV households • Andhra Pradesh, Telangana, Maharashtra and rural Gujarat to drive growth Staying Competitive • Improved content offerings - OTT distribution as an add-on available to all GTPL customers • >75% of Homepass in FTTX in broadband which provides a ready infrastructure. Factors contributing to growth Increasing use of Internet for Consumer & Enterprise needs Higher data usage with increased adoption of Social Media & OTT Push for digital growth and education all over India Necessity of uninterrupted broadband services at homes Large opportunity market size India Wired Broadband Market stood at USD 605.37 Million in FY2023 and is expected to register a CAGR of 15.43% from FY23 to FY2028. Of the overall wired broadband market the Fibre to the Home (FTTH) segment is expected to grow at a CAGR of 17.62% during the forecast period.
Page 13
13 Key Performance Indicators
Page 14
Cable TV Business Performance 141Active = Active during last 60 days* FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar 9.60Mn Active STBs 8.90Mn Paying Subscribers 47K+ Business Partners 80%+ Digital Collection 100% Base in prepaid business Launch GTPL Buzz Increased Active Subscribers by 200K Y-o-Y Increased Paying Subscribers by 200K Y-o-Y Entered 4 new states in FY24 – Delhi, Haryana, Uttarakhand and Himachal Pradesh Expanding aggressively in Andhra Pradesh, Telangana, Tamil Nadu, North-East, Delhi, Haryana, Uttarakhand & Himachal Pradesh. 130+ Owned & Operated Channels 1 New customer facing App
Page 15
15 Active1 Subscribers (Mn) 1Active = Active during last 60 days # Active Subscribers increased by 200K Y-o-Y Cable TV Business: Consolidated* * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar 9.40 9.50 9.60 9.50 9.60 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Paying Subscribers (Mn) # Paying Subscribers increased by 200K Y-o-Y 8.70 8.80 8.90 8.80 8.90 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3 FY25
Page 16
Broadband Business Performance 16* FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar 1042K Active Subscribers 5.95Mn Home-pass 365GB Average Data consumption per month 2% Y-o-Y Revenue Growth 200 Mbps Speed with unlimited data ₹ 465/- ARPU Increase of 37K (4%) Subscribers Y-o-Y ARPU of ₹ 465 as of December 24; increased by ₹ 5 Y-o-Y Enhanced High Speed Broadband Service offering up to 200 Mbps coupled with Truly Unlimited Data 5.95 Mn Home Pass; ~75% Home-pass available for FTTX conversion Average Data Consumption per Customer stands at 365 GB / Month for Q3 FY25; up by 6% Y-o-Y
Page 17
17 Homepass (Mn) Active Subscriber’s (‘000) ARPU (₹) (Net of Taxes) # Homepass increased by 350K Y-o-Y # ACB increased by 37K Y-o-Y # ARPU increased by ₹ 5 Y-o-Y Broadband Business: Quarterly* * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar 5.60 5.80 5.90 5.95 5.95 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 1,005 1,020 1,030 1,040 1,042 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 460 460 460 460 465 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25
Page 18
18 Consolidated Financials
Page 19
Financial Highlights : Consolidated 19 Revenue Total Revenue up by 7% 9M-o-9M, 4% Y-o-Y & 4% Q-o-Q ISP Revenue up by 3% 9M-o-9M, 2% Y-o-Y & 1% Q-o-Q EBITDA EBITDA of ₹ 3,481 Mn in 9M FY25 & ₹ 1,138 Mn in Q3 FY25 EBITDA Margin stands at 13.3% in 9M FY25 PBT PBT of ₹ 517 Mn in 9M FY25 & ₹ 124 Mn in Q3 FY25 PAT PAT of ₹ 374 Mn in 9M FY25 & ₹ 102 Mn in Q3 FY25 2 1 3 4 * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 20
Profit & Loss Statement: Consolidated * 20 In ₹ Mn Revenue Subscription Income CATV 3,024 3,129 -3% 3,249 -7% 9,345 9,456 -1% 12,604 Broadband ISP 1,383 1,367 1% 1,352 2% 4,099 3,961 3% 5,268 Placement / Carriage / Marketing Incentive 4,147 3,793 9% 3,227 29% 11,489 9,329 23% 12,677 Project Income - - - 416 - - 416 - 416 Activation 33 43 -23% 33 -3% 117 124 -6% 174 Other Operating Income 287 224 28% 231 24% 811 759 7% 985 Other Income 84 65 30% 98 -14% 221 267 -17% 336 Total Income 8,957 8,620 4% 8,607 4% 26,083 24,312 7% 32,460 Expenditure Pay Channel Cost 5,399 5,106 6% 4,578 18% 15,385 13,346 15% 17,983 Employee Cost 401 414 -3% 403 0% 1,212 1,144 6% 1,545 Project Cost - - - 414 - - 414 - 414 Other Operating, Admin & Selling Exp. 2,018 1,962 3% 1,907 6% 6,005 5,494 9% 7,407 Total Expenditure 7,819 7,482 5% 7,302 7% 22,602 20,398 11% 27,349 EBITDA 1,138 1,138 0% 1,305 -13% 3,481 3,914 -11% 5,111 EBITDA % 12.7% 13.2% 15.2% 13.3% 16.1% 15.7% Depreciation/Amortization 928 905 3% 909 2% 2,751 2,468 11% 3,372 Finance cost 87 60 44% 65 33% 213 156 36% 229 Profit before Tax & Exceptional item 124 173 -29% 331 -63% 517 1,290 -60% 1,510 Exceptional Items - - - - - - Share of Profit/(Loss) from Associate and JVs 9 6 3 13 1 (2) PBT 133 180 -26% 335 -60% 530 1,291 -59% 1,508 Tax 37 42 88 146 333 390 PAT before Other Comprehensive Income 96 137 -30% 247 -61% 384 957 -60% 1,118 Share of Non Controlling Interest 5 (10) (10) (11) (19) (48) Other Comprehensive Income 1 1 1 2 4 (1) PAT 102 129 -21% 238 -57% 374 942 -60% 1,069 Particulars Q3 FY25 Q2 FY25 Q3 FY24 Y-o-Y% Q-o-Q% 9M-o-9M% 9M FY25 9M FY24 FY24 * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 21
Analysis on Operating Margin : Consolidated * 21 In ₹ Mn Revenue Subscription Income CATV 3,024 3,129 -3% 3,249 -7% 9,345 9,456 -1% 12,604 Broadband ISP 1,383 1,367 1% 1,352 2% 4,099 3,961 3% 5,268 Other Operating Income 287 224 28% 231 24% 811 759 7% 985 Total Income 4,694 4,720 -1% 4,832 -3% 14,255 14,175 1% 18,857 Expenditure Net Pay Channel Cost 1,252 1,313 -5% 1,352 -7% 3,895 4,018 -3% 5,305 Pay Channel Cost 5,399 5,106 6% 4,578 18% 15,385 13,346 15% 17,983 Placement / Carriage / Marketing Incentive (4,147) (3,793) 9% (3,227) 29% (11,489) (9,329) 23% (12,677) Employee Cost 401 414 -3% 403 0% 1,212 1,144 6% 1,545 Other Operating, Admin & Selling Exp. 2,018 1,962 3% 1,907 6% 6,005 5,494 9% 7,407 Total Expenditure 3,672 3,689 0% 3,661 0% 11,113 10,656 4% 14,258 Operating EBITDA 1,021 1,031 -1% 1,171 -13% 3,143 3,520 -11% 4,599 Operating EBITDA % 22% 22% 24% 22% 25% 24% Activation 33 43 -23% 33 -3% 117 124 -6% 174 Project Margin (Income - Cost) - - 3 - 3 3 Other Non Operating Income 84 65 30% 98 -14% 221 267 -17% 336 Published EBITDA 1,138 1,138 0% 1,305 -13% 3,481 3,914 -11% 5,111 FY24Particulars Q3 FY25 Q2 FY25 Q-o-Q% Q3 FY24 Y-o-Y% 9M FY25 9M FY24 9M-o-9M% * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 22
22 Standalone Financials
Page 23
Financial Highlights : Standalone 23 Revenue Total Revenue up by 7% 9M-o-9M, 8% Y-o-Y & 4% Q-o-Q EBITDA EBITDA of ₹ 1,995 Mn in 9M FY25 & ₹ 654 Mn in Q3 FY25 EBITDA Margin stands at 12.1% in 9M FY25 PBT PBT of ₹ 535 Mn in 9M FY25 & ₹ 142 Mn in Q3 FY25 PAT PAT of ₹ 397 Mn in 9M FY25 & ₹ 107 Mn in Q3 FY25 2 1 3 4 * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 24
Profit & Loss Statement : Standalone 24 In ₹ Mn Revenue Subscription Income CATV 2,112 2,207 -4% 2,251 -6% 6,568 6,674 -2% 8,886 Placement / Carriage / Marketing Incentive 3,084 2,881 7% 2,542 21% 8,691 7,481 16% 10,069 Activation 15 16 -6% 23 -37% 55 90 -40% 110 Other Operating Income 351 287 22% 298 18% 998 949 5% 1,221 Other Income 90 62 46% 101 -11% 225 261 -14% 324 Total Income 5,652 5,452 4% 5,217 8% 16,537 15,456 7% 20,610 Expenditure Pay Channel Cost 3,824 3,684 4% 3,351 14% 11,042 9,965 11% 13,318 Employee Cost 194 199 -2% 194 0% 587 557 6% 748 Other Operating, Admin & Selling Exp. 979 919 7% 914 7% 2,912 2,714 7% 3,657 Total Expenditure 4,998 4,801 4% 4,460 12% 14,542 13,236 10% 17,722 EBITDA 654 651 0% 757 -14% 1,995 2,220 -10% 2,887 EBITDA % 11.6% 11.9% 14.5% 12.1% 14.4% 14.0% Depreciation/Amortization 446 421 6% 454 -2% 1,304 1,203 8% 1,628 Finance cost 66 41 62% 44 49% 156 115 35% 158 Profit before Tax & Exceptional item 142 189 -25% 259 -45% 535 901 -41% 1,101 Exceptional Items - - - - (60) PBT 142 189 -25% 259 -45% 535 901 -41% 1,042 Tax 36 49 68 138 238 279 PAT before Other Comprehensive Income 107 140 -24% 191 -44% 397 663 -40% 762 Add/(Less) Other Comprehensive Income 0 1 1 1 2 (1) PAT 107 141 -24% 192 -44% 397 665 -40% 761 Particulars Q3 FY25 Y-o-Y% Q2 FY25 Q-o-Q% Q3 FY24 FY24 9M FY25 9M FY24 9M-o-9M% * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 25
Analysis on Operating Margin : Standalone * 25 In ₹ Mn Revenue Subscription Income CATV 2,112 2,207 -4% 2,251 -6% 6,568 6,674 -2% 8,886 Other Operating Income 351 287 22% 298 18% 998 949 5% 1,221 Total Income 2,463 2,494 -1% 2,550 -3% 7,566 7,623 -1% 10,106 Expenditure Net Pay Channel Cost 741 803 -8% 809 -8% 2,351 2,484 -5% 3,249 Pay Channel Cost 3,824 3,684 4% 3,351 14% 11,042 9,965 11% 13,318 Placement / Carriage / Marketing Incentive (3,084) (2,881) 7% (2,542) 21% (8,691) (7,481) 16% (10,069) Employee Cost 194 199 -2% 194 0% 587 557 6% 748 Other Operating, Admin & Selling Exp. 979 919 7% 914 7% 2,912 2,714 7% 3,657 Total Expenditure 1,914 1,920 0% 1,917 0% 5,851 5,755 2% 7,653 Operating EBITDA 549 573 -4% 633 -13% 1,716 1,868 -8% 2,453 Operating EBITDA % 22% 23% 25% 23% 25% 24% Activation 15 16 -6% 23 -37% 55 90 -40% 110 Other Non Operating Income 90 62 46% 101 -11% 225 261 -14% 324 Published EBITDA 654 651 0% 757 -14% 1,995 2,220 -10% 2,887 Y-o-Y% FY24Particulars Q3 FY25 Q2 FY25 Q-o-Q% Q3 FY24 9M FY25 9M FY24 9M-o-9M% * FY = Apr-Mar, Q1 = Apr-Jun, Q2 = Jul-Sep, Q3 = Oct-Dec, Q4 = Jan-Mar, 9M = Apr-Dec
Page 26
Investor Conference Call Details 26
Page 27
Safe Harbor 27 The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation / advise may be obtained and necessary due diligence, investigation etc. may be done at your end. You may also contact us directly for any questions or clarifications at our end. This presentation contains certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue and similar expressions identify forward looking statements. Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
Page 28
Mr. Piyush Pankaj Business Head B2B - (CATV & Broadband) Chief Strategy Officer +91 98113 21102 piyush.pankaj@gtpl.net Mr. Irfan Raeen Mr. Devansh Dedhia +91 97737 78669 +91 99301 47479 Irfan.raeen@linkintime.co.in Devansh.dedhia@linkintime.co.in 28 Thank You! Contact Details