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WWIL reports Q3 consolidated operating revenues of Rs 70.4 cr; incurs operating losses of Rs 3.16 cr

WWIL reports Q3 consolidated operating revenues of Rs 70.4 cr; incurs operating losses of Rs 3.16 cr

Author | exchange4media Mumbai Bureau | Thursday, Jan 31,2008 6:57 AM

WWIL reports Q3 consolidated operating revenues of Rs 70.4 cr; incurs operating losses of Rs 3.16 cr

Zee Group’s cable unit, Wire and Wireless (India) Ltd (WWIL) has declared the unaudited consolidated financial results for the third quarter ended December 31, 2007. WWIL has reported consolidated revenues of Rs 70.4 crore in the third quarter as compared to Rs 49.3 crore, a growth of 43 per cent over the corresponding quarter last fiscal.

However, during the quarter, WWIL also incurred operating losses of Rs 3.16 crore, while profit after tax for the third quarter of the fiscal was a loss of Rs 28.5 crore.

Subhash Chandra, Chairman, Zee Group, said, “We have identified several opportunities for growth of our business and plan to consolidate our position in the cable business by way of faster digitisation of cable TV, acquisition of MSOs and direct points, and through strategic alliance with various infrastructure providers for digital services. We are investing our time and efforts in building a high quality digital cable network for our subscribers. Apart from the existing digital services in CAS notified metros and some non-metro cities, we plan to extend the digital services to all parts of country through HITS. We believe that our ability to handle large cable network, digital cable services and launch of VOD and other value added services provides a compelling value proposition for the shareholders in the days to come.”

WWIL is preparing to roll out digitalisation through Headend in the Sky (HITS) technology in the country. This would allow WWIL to provide high quality digital services reaching out to a pan India viewership base. During the quarter, WWIL has procured various equipment, parts and accessories for the HITS platform.

Deepak Chandnani, CEO, WWIL, said, “Very soon we would be the first MSO to deliver digital services through HITS platform in India. This would enable us to rollout digital services and a sophisticated service network to a larger national market, beyond the currently notified CAS areas, quickly and efficiently. HITS roll-out will progress in tandem with the roll-out of digital services in the cities where we already have Digital Headends. This is a big and challenging opportunity for WWIL and we are confident that we will deliver differentiated, attractive and compelling offers to our consumers and better returns to shareholders.”

The company’s operating revenues are generated primarily from the subscriber related income, sale of set-top boxes and other operating revenues. While the company’s main operating expenses include cost of goods and services, staff cost, administrative expenses and selling and distribution expenses.

Chandnani added, “The highlight of this quarter is the carriage fees income, which has gone up to Rs 26.4 crore, while digital revenues have increased to Rs 4.5 crore. We have also extended technical upgradation programme throughout our existing operations to improve the quality of our current services to subscribers and be ready with high quality infrastructure for the roll-out of digital services.”

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