FY2016
Total Income higher by 22% to Rs. 1,963 million
EBITDA improved by 18% to Rs. 703 million
PAT increased by 113% to Rs. 119 million Vs. Rs. 56 million in FY2015
Added 171,081 RGUs in FY2016; Total RGUs at 701,192
~65% of new RGUs added in Non-Odisha States
Bhubaneshwar, April 30, 2016: Ortel Communications Limited (Ortel), one of the leading cable television and high speed broadband services provider focused in the Indian states of Odisha, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana and West Bengal, announced its financial results for the quarter and year ended March 31, 2016.
FY2016 performance overview compared with FY2015 Total Income increased to Rs. 1,963 million from Rs. 1,611 million, up by 21.8% EBITDA grew by 18.0% to Rs. 703 million from Rs. 597 million o EBITDA margin stood at 35.8% Profit After Tax came in at Rs. 119 million, higher by 113.0% compared to Rs. 56 million EPS amounted to Rs. 3.93 per share
Q4 FY2016 performance overview compared with Q4 FY2015 Total Income increased to Rs. 533 million from Rs. 449 million, up by 18.6% EBITDA stood at Rs. 184 million compared to Rs. 208 million o EBITDA margin stood at 33.6% Profit After Tax came in at Rs. 28 million EPS amounted to Rs. 0.91 per share
Commenting on the performance, Mr. Bibhu Prasad Rath, President & CEO at Ortel Communications said:
“Ortel Communications reported healthy financial and operational performance during the year led by robust RGU additions of 1.71 lakh subscribers. Growth in our core businesses have primarily enabled us to double our PAT to Rs. 119 million in FY16. I am also pleased to state that 65% of new RGUs have come from Non-Odisha states of Andhra Pradesh, Telangana, Chhattisgarh and Madhya Pradesh. This reinforces our vision that the ‘last mile’ model can be successfully implemented in many states across India apart from our home market of Odisha. Overall, we have ended the year on a strong note and are geared up to build on this momentum in the coming year. We remain focused towards achieving our stated target of 1 million subscribers by March 2017, which should make us the largest ‘last mile’ player in the country. We believe this model will make us one of the first few players in the sector to create sustainable value for all our stakeholders.”
Key Developments Robust RGU Additions: During the year, the total RGU additions stood at 171,081 subscribers, taking the total RGUSs to 701,192 o Net addition in Q4 FY16 stood strong at 74,717 subscribers – on-track to achieve 1 million subscribers by March 2017 o 86,797 RGUs in the pipeline – to be integrated into the Company’s last mile network in the coming months
Healthy Traction in States outside Odisha: About 65% of the RGUs were added in the States of Andhra Pradesh, Telangana, Chhattisgarh, & Madhya Pradesh o Close to 70% of the new signings have been reported in these states
Improved Digital Penetration: Seeded 107,175 Set Top Boxes (STB) during the year, thereby improving the digital penetration ratio to 37.1% from 22.7% in FY15 o ARPU for subscribers converted from Analog to Digital witnesses improvement – Analog and Digital ARPU stood as Rs. 141 per month and Rs. 178 per month respectively o Hold over 3 lakh STBs in inventory with digital signals in place – sufficient stock for implementation of Digitization under Phase-III
Steady momentum in Broadband Business: Net addition of 13,963 subscribers in FY2016 compared to 4,092 subscribers in FY2015; Total Broadband RGUs at 72,482 o Expect significant growth in broadband subscribers in FY17 on the back of new network rollout, a strong team, solid back-end operations, attractive broadband packages and various other value-added services & initiatives
About Ortel Communications Limited (ORTEL)
Ortel Communications (NSE Code: ORTEL; BSE Code: 539015) is a leading cable television and high speed broadband services provider focused in the Indian states of Odisha, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana & West Bengal. The Company has built a two-way communication network for ‘Triple Play’ services (video, data and voice capabilities) with control and focus over the ‘Last Mile’ network. Ortel has pioneered the primary point cable business model in India by offering digital and analog cable television, broadband and VAS services. The Company has a dominant position in Orissa, with emerging presence in Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana & West Bengal, covering an addressable market of close to 5 million homes. The business is broadly divided into cable television services comprising of analog cable television services, digital cable television services including other value added services such as HD services, near video on demand (NVoD), gaming and local content. Other focused business segments include broadband services, leasing of fibre infrastructure and signal uplinking services.