GTPL Hathway profit down 62% in Q2 FY25

GTPL Hathway has reported a 62% decline in profits in its financial results for the second quarter of financial year 2024-25.

Revealing a mixed performance compared to the same period in FY’24, the company reported a 9% increase in total income, reaching Rs 862 crore in Q2 FY25, compared to Rs 790 crore in the previous year.

However, despite this growth in revenue, profitability took a significant hit, largely due to rising operational costs.

Total expenses surged by 14%, increasing from Rs 654.9 crore in Q2'24 to Rs 748.2 crore in Q2'25. This growth in expenses outpaced the revenue increase, placing substantial pressure on the company’s profit margins.

GTPL Hathway’s profit after tax dropped by a massive 62%, from Rs 34.4 crore in Q2'24 to Rs 12.9 crore in Q2'25.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also declined by 16%, falling from Rs 135.1 crore in Q2'24 to Rs 113.8 crore in Q2'25.

Depreciation and amortization expenses grew by 10%, indicating higher capital expenditures or the aging of existing assets.

A major contributor to the rising costs was the significant 18% increase in pay channel costs, which jumped from Rs 434 crore in Q2'24 to Rs 510.6 crore in Q2'25.

Additionally, finance costs grew by 21%, from Rs 5 crore to Rs 6 crore. Its operational income fell by 8%, down to Rs 22.4 crore from Rs 24.3 crore the previous year.

Subscription income from cable television (CATV) services experienced a slight 3% decline, reaching Rs 312.9 crore compared to Rs 322.6 crore in Q2'24. On the positive side, marketing incentives and carriage revenues saw a notable 28% increase, rising to Rs 379.3 crore, which provided some relief to the company’s overall revenue stream.

While GTPL Hathway managed to increase its total income, the substantial rise in expenses, particularly in content and finance costs, significantly impacted its profitability.

The rise in digital streaming services and changing viewership has been a cause of concern for DPOs and MSOs alike. Audiences are shifting towards on-demand viewing rather than scheduled programming. This shift favors streaming, which allows viewers to watch shows and movies at their convenience.

Cable industry has been at loggerheads with broadcasters for many years seeking a level playing field over various issues including channel price hike, discounts, DD FreeDish encryption and many others.

Commenting on the results, Anirudhsinh Jadeja – Managing Director, GTPL Hathway said, “GTPL maintains its stronghold as the largest MSO of India with a commitment to meet all entertainment and connectivity needs of our valued customers, driven by a strong focus on innovation and enhancing the customer experience.”

“In line with this vision, GTPL launched the customer app 'GTPL Buzz' and its revamped website during the quarter. These customer touchpoints have been designed for a consistent user experience and to deliver seamless interaction across platforms and devices.

“The launches are significant with a suite of services including ‘TV Everywhere’, ‘Blacknut Cloud Gaming’ and ‘Distro TV’, being made available to our customers while integrating GTPL’s AI enabled chatbot ‘GIVA’ for sales as well as support.  Broadband business is witnessing healthy subscriber growth, propelled by both direct customer additions and with strategic use of our extensive partner network to expand.

“In the cable business, our efforts are focused on growing our subscriber base through a mix of organic growth and industry consolidation via acquisitions of existing operators and MSOs. This dual strategy strengthens our market position and builds on our success. We look forward to continuing delivering value to our subscribers and stakeholders,” he said.