Noida : SITI Networks Limited (SITI NETWORKS) (BSE: 532795, NSE: SITI NETWORKS EQ), an Essel Group Company have released their Unaudited Consolidated Financial Results for the third quarter ending December 31, 2015.
The Company announced Profit before tax of INR 56 Crores in Q3FY16. EBITDA increased by 159% year-on year, while Revenues increased by 68% for the same period.
SITI Networks has been vigorously participating in the Digital India movement by digitizing analog TV homes in DAS Phase 3 areas and added 1.1. Million video customers during the quarter taking up the digital video base to 6.8 million exit, December 2015.
The company’s broadband operations also added 15,550 new customers with an overall base of 1,07,000 exit December 2015. SITI Networks is also looking to expedite the roll out of broadband operations at a quicker pace in the short to medium term.
As a part of the digitization initiative, in Q3’16, the company further expanded its footprint by entering into 100+ new markets in Andhra Pradesh, Telangana, West Bengal, Maharashtra, Karnataka, Madhya Pradesh, Bihar, Jharkhand, Chhattisgarh, Rajasthan, Uttarakhand, Uttar Pradesh & Haryana. With this expansion, the presence of SITI Networks has reached more than 250 cities.
During the quarter, the company engaged with Local Cable Operators (LCO) by organizing extensive on ground education programs in DAS Phase 3 cities. Objective of this program was to educate LCO’s about the benefits of Digitization and give the much required impetus to STB seeding.
In cognizance of the growing customer demand for HD channels, SITI Networks has further strengthened its HD bouquet by adding 15 more HD channels and is presently offering over 45 HD channels. During the quarter, the company added 10,372 HD customers.
Subject to approval by the shareholders, Fresh funds amounting to Rs. 680 Crores are being infused by the promoter group entities re-affirming the SITI Networks Growth Story and commitment to create sustainable value for all stakeholders. In addition, The Reserve Bank of India has recently hiked the Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) investment limit in the Company, which allows the foreign funds to aggressively participate up to 49% of the paid up capital of the Company.
Siti Networks adopted the inorganic growth route and acquired majority stake in regional MSO’s in Maharashtra, Gujarat and Odisha for DAS Phase 3 &4 expansion.
While commenting on the results Mr. V D Wadhwa, Executive Director & CEO, SITI Networks mentioned,
Focussing on our guiding principle of creating value for all stakeholders, Company has achieved the financial turnaround for the first time in its history and reported PBT of INR 56 Crores in Q3FY16 and INR 5.1 Crores for the 9 Months of FY16.
At SITI Networks, our efforts to strive for operational excellence continues and during the quarter the company has added 1.1 million digital subscribers, over 10,000 broadband customers and achieved all-time high EBITDA growth of 159% YoY. We expect this momentum to sustain in the coming quarters.
We are also aggressively looking for inorganic growth opportunities in the geographies, which make strategic sense for us to expand and have acquired some networks in western part of the country which shall add additional 1.5 million subscribers to our existing subscriber base of 10.7 million. We strongly believe in cohesiveness among like-minded players and are actively engaged in our efforts as a consolidator in the industry”.