Connect with us

Daily News

Hathway FY19 Report Shows Dip Of Rs 429.62 Crore

As per Hathway Cable and Datacom Ltd’s statement, the new pricing framework introduced by the Telecom Regulatory Authority of India (Trai) resulted in altercations in the pricing mechanisms of the industry, arrangements among the company, LCOs, broadcasters and even brought about a change in equity infusion. The new Trai tariff regime was introduced in the fourth quarter of the FY19, and it has brought a one-time impact on the financial statements of the company which are being disclosed as ‘Exceptional Items’. As per Hathway Cable and Datacom Limited report, the exceptional items in FY19 impacted the company to the extent of Rs 429.62 crores whereas this figure was a meagre Rs 5.34 crore in the FY18.

Financials Take a Dip for Hathway Cable and Datacom Post NTO

Hathway Cable and Datacom remain already under reeling losses and is troubled by lower operating revenue and operating losses from its cable business. These losses reflected on Hathway’s financials sheets pretty clearly as the company reported a higher after-tax loss of Rs 187.67 crore as compared to its net loss of Rs 107.86 crore. This news is reported by Indian Television.

The losses for Hathway could have been even higher but thanks to deferred taxes which run up to Rs 438.95 crore that hasn’t happened for this FY. The company has remarked that the deferred tax assets recognised during the period are mainly in respect of unabsorbed depreciation allowance available for set off for an indefinite period in terms of applicable tax laws. The company also said that in the light of revision of growth strategy of the company and given the introduction of the new NTO from Trai, the Hathway Cable management is quite sure about taxable income in the upcoming months thus paving the way for deferred tax assets.

Some of the other exceptional items reported by Hathway Cable and Datacom include writing down of property plant and equipment which stretch to Rs 69.83 crore. There were also other expenses related to equity infusion for the company which cost it Rs 25.87 crore. In the Q4 FY19, Hathway Cable had allotted 908,810,000 equity shares of Rs 2 each at a premium of Rs 30.35 per share to its acquirers on a preferential basis. The shared were granted to Jio Content Distribution Holdings Private Ltd, Jio Internet Distribution Holdings Private Ltd and Jio Cable and Broadband Holdings Private Ltd. The total shared aggregated to Rs 2,940 crores representing 51.34% of after allotment equity share capital of the company.

Also, what’s crucial to note is that Hathway has two segments – broadband and cable TV. The broadband segment of Hathway witnessed 3.1% decline to Rs 527.63 crore as compared to the Rs 544.54 crore which was the standing figure in FY18. The operating result of the segment saw a massive decline of two thirds and more, a depreciation of almost 67.7% in FY19 at Rs 42.01 crore in contrast to the Rs 130.25 crore in FY 2018.

For the cable TV segment of Hathway Cable and Datacom, revenue increased 4.1% in FY19 to Rs 1,030.66 crore from Rs 990.08 crore in FY18. The segment’s operating loss in FY 2019 went up to Rs 457.46 crore, rising from Rs 129.33 crore in FY 2018.

Additional Numbers Reported by Hathway Cable and Datacom

The revenue by operations went up by 1.5% for Hathway Cable and Datacom in FY 2019 and stood at Rs 1,558.29 crore in contrast to Rs 1,534.62 crore for FY 2018. The total income for this period was pegged at Rs 1,619.20 crore, and it was 4.8% higher as compared to Rs 1,544.36 crore which was the number in FY 2018.

Speaking of total expenses for the company, Hathway registered Rs 1,822.72 crore which was 8.1% higher than Rs 1,686.45 crore for FY 2018. The cost of pay channels was also recorded to be Rs 609.85 crore again being 8.1% higher than Rs 569.35 crore in FY 2018. Operational expenses in FY 2019 rested at Rs 253.30 crore thus coming down by 3% from the Rs 263.90 crore in FY 2018.

The EBITDA for FY 2019 stood at Rs 308.78 crore which was an 8% decrease from Rs 335.63 crore in FY 2018. Total comprehensive loss (TCL) in FY 2019 was registered to be Rs 186.53 crore as compared to TCL of Rs 105.21 crore in the FY of 2018.

Lastly, employee benefits expenses in FY 2019 were said to be at Rs 82.86 crore thus registering to be 7.6% higher than the previous number of Rs 76.99 crore in FY 2018. Finance costs in FY 2019 stood at Rs 220.8 crore which was a substantial increase of 44.5% as compared to the Rs 152.76 crore in FY 2018.―Telecom Talk

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023.Broadcast and Cablesat

error: Content is protected !!