NXTDigital Q4 consolidated revenue grew by 6.95% at Rs 277.96 crore
During the quarter, the company posted a net profit of Rs 13.66 crore as against Rs 32 lakh in the previous quarter
Hinduja Group-promoted NXTDigital's consolidated revenue for the quarter ending 31st March 2021 grew by 6.95% at Rs 277.96 crore compared to the previous quarter revenue of Rs 259.90 crore and by 22.38% over the corresponding quarter of the previous year.
NXTDigital is an integrated digital platforms company reaching over 5million customers through digital cable, satellite via HITS (Headend- In-The-Sky), and broadband. The Earnings Before Interest Depreciation and Taxes (EBIDTA) for the quarter was Rs 67.54 crore, which is 8.10% growth over Rs 62.47 crore in the previous quarter and a 167% growth over the EBIDTA of the corresponding quarter of the previous year.
During the quarter, the company posted a net profit of Rs 13.66 crore as against Rs 32 lakh in the previous quarter and a net loss of Rs 43.43 crore in the corresponding quarter of the previous year.
For the year ending March, the company's consolidated revenue for the year remained consistent at Rs 1,008.5 crore, marginally down from Rs 1,038 crores – due to a reduction in the low-margin non-core trading business. The company recorded a consolidated EBIDTA of Rs 232.08 crore, growing by 6.16% over the EBIDTA of the previous year of Rs 218.62 crores (excluding one-time revenues of Rs 123.12 crores in the previous year). The EBIDTA margins improved to 23.01% for the year compared to 21.04% in the previous year.
The Board of Directors of the Company at a meeting held on 13th May 2021 have recommended a dividend of Rs 4 per equity share of the face value of Rs 10 each, subject to shareholders’ approval.
In order to have a stronger capital structure which provides a strong basis for future growth investments; and to bring in a more healthy mix of debt to equity by reducing debt and improving the equity base, the Board of Directors have approved a “Rights Issue” of 2 Equity shares of the face value of Rs 10 each for every 5 Equity Shares of the face value of Rs 10 each held in the Company at an issue price of Rs 300 per share. This is subject to regulatory and other approvals. The Board has set up a Committee of the Board to inter alia, decide on the record date and other details of the Rights Issue.
NXTDigital MD & CEO Vynsley Fernandes said, “This performance trains the spotlight on NXTDigital, considering this was easily one of the most challenging years, which saw a significant impact on the media and entertainment industry. The stellar performance can be attributed to the company’s focus on uninterrupted customer service during the lockdown and after innovative products and solutions to combat the myriad of ground challenges, driving close to a 100% digital mode of collections on a prepaid basis and the unstinting and tireless efforts of all our employees and our Last Mile partners - all of whom rose to the occasion, without exception."
The company will continue to focus on its transformation to an “all-digital” services company, driving a host of new products and solutions, whilst expanding into newer geographies.
One of the key growth drivers for the future will be its recently launched infrastructure sharing PaaS or Platform-as-a-Service offering. The Ministry of Information and Broadcasting (MIB) last month permitted the HITS platform to share infrastructure with other registered MSOs in the country.
This move of the government, akin to the successful model of sharing of mobile towers in the telecom space, will help MSOs reduce connectivity costs whilst improving the quality of service to customers. NXT, the only platform in the country which has been granted permission is looking to leverage the opportunity to provide its PaaS platform to MSOs – for which it will earn a fee income.
The potential market for such PaaS or infrastructure sharing services in India is estimated at over 60 million cable TV subscribers; connected to around 1,000 MSOs – largely independent or regional players, who face such cost and quality challenges. NXT is already in discussions with several MSOs, keen to leverage the PaaS solution to control their costs and improve their quality of services.
The company said that it will continue to grow its broadband subscriber base – focusing on leveraging the installed customer base of the digital cable and HITS platforms; whilst simultaneously looking to expand its footprint. Leveraging the broadband capability of the organization to optimally cater to the surge in demand – the business saw a huge growth of 87% in the customer base; growing from 0.329 million in FY20 to 0.615 million in FY21. NXTDigital’s broadband arm ONEOTT Intertainment added over 100,000 customers in the last quarter of FY21 alone.
Another key driver will be expanding the current coverage of the HITS platform to at least another 100 towns – through a unique networking model. The company also has plans to roll out new technology solutions and devices including high-end versions of the hybrid Set-Top Box that will deliver linear television and streaming services, including OTT through a single device, seamlessly.
NXTDigital is working with broadcasters and last-mile partners to create content packages to cater to the changing consumer demand – ranging from all-HD content packages to kids’ content to economical infotainment packages. The efficacy is reflected in ARPUs; in the case of DAS 3 markets (where the HITS platform has a significant base), ARPUs grew from Rs 144 in FY20 to Rs 151.
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