NXTDIGITAL reports 13.5% growth in Q1 consolidated revenue at Rs 266.6 crore

Net loss during the first quarter of the current year stood at Rs 28.9 crore, compared to Rs 30 crore

e4m by exchange4media Staff
Published: Aug 16, 2021 5:47 PM  | 3 min read
nxtdigital

TV distribution company NXTDIGITAL, which is also the media vertical of the Hinduja Group, has reported 13.5% growth in the Q1 consolidated revenue at Rs 266.6 crore against Rs 234.8 crore during the same period in the previous year.

Total expenses jumped 16.7% to Rs 215.34 crore from Rs 184.46 crore. The EBITDA was at Rs 51.3 crore as against Rs 50.4 crore. The net loss during the first quarter of the current year stood at Rs 28.9 crore, compared to Rs 30 crore.

The company has signed up several prestigious contracts in both, the video and broadband segments of its business, which projects got delayed due to the second wave. These are temporary blips which the Company expects to overcome once the above projects and its infrastructure sharing business start going on-stream in the second and third quarters.

NXTDIGITAL's digital content delivery business had 5.67 million subscribers, including 2.94 million cable TV and 2.73 million Headend in the Sky (HITS) subscribers. The broadband business continued to grow, touching 677,000 subscribers — registering a 93% growth over Q1 of FY21.

NXTDIGITAL MD & CEO Vynsley Fernandes said, “The Q1 performance exhibits the company’s agility and reflexes — being able to innovate and maintain its momentum through a quarter impacted by the second wave. With the situation easing up, we are confident that implementation of our PaaS platform and the roll-out of our 100 NXTHUB project will see traction. Whilst we look to commence our infra sharing model with Siti Networks and then extend it to other MSOs, our 100 NXTHUB launch later this month from Ranchi and then on to other geographies, will continue to keep us well on the growth track.”

With respect to the proposed Rights Issue approved by the Board of Directors at its meeting held on 13th May 2021, the company has filed the Draft Letter of Offer with SEBI and the Stock exchanges on 2nd August 2021 and is in the process of clearance.

One of the growth drivers will be its infrastructure sharing PaaS or Platform-as-a-Service offering, which was delayed due to the second wave. As the lockdown eases, NXT is looking to implement the service for its anchor customer, Siti Networks Ltd., one of India’s largest Multi System Operators. NXT expects to start clocking revenues from its infrastructure sharing business during Q2 of the current fiscal.

Besides continuing to drive its broadband proliferation, another key driver will be expanding the current coverage of the HITS platform to at least another 100 towns — through a unique networking model offsetting up advanced digital “owned and operated” NXTHUBs.

Each future-ready NXTHUB is equipped with the latest technology, comprising an ADDS or Advanced Digital Distribution System — to distribute video signals and broadband to Last Mile Owners (LMOs) and their customers; as well as other digital services in future. The model eliminates the need for LMOs to invest in related headend technology whilst having access to these points of presence across the country. The first NXTHUB will go “live” in Ranchi by end August, with another 10 sites shortly thereafter.

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