GuruFocus - Release Date: January 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GTPL Hathway Ltd (NS:GTPH) (BOM:540602) reported a 4% year-over-year growth in total revenue for the quarter, reaching INR8,957 million.
- The company saw an increase in both active and paying subscribers in the cable TV segment, with a year-over-year addition of 200,000 subscribers.
- Broadband business added 37,000 new subscribers, marking a 4% increase year-over-year.
- The company is actively pursuing expansion opportunities beyond its traditional strongholds, aiming to increase its national footprint.
- GTPL Hathway Ltd (BOM:540602) has launched new services such as AI chatbot Viva and industry-first TV key cloud in collaboration with Nagra, enhancing consumer experience.
- The company faced challenges in customer addition and retention due to extended rain and floods, impacting operations.
- Despite an increase in broadband ARPU, the broadband ISP revenue only grew by 2%, indicating a discrepancy in expected revenue growth.
- Interest costs have increased due to higher overdraft utilization and borrowing for the hits project, affecting net profit.
- The company is facing competitive pressure from major players like Airtel and Jio, limiting pricing power in bundled services.
- There is uncertainty regarding the impact of broadcaster price hikes on consumer pricing and potential subscriber churn.
A: The BharatNet project is currently under judicial review. GTPL Hathway is participating and awaiting the outcome. Once resolved, the company will update investors on any developments. (Respondent: Unidentified_5)
Q: Can you explain the rising ARPU on the broadband side?
A: The increase in ARPU to INR 465 is due to customer demand for higher packages. The company has introduced higher-speed packages, which are driving the ARPU increase. (Respondent: Unidentified_5)
Q: How does GTPL Hathway plan to compete with companies like Airtel and Jio in the bundled services market?
A: GTPL Hathway focuses on creating value through its entertainment and broadband offerings. The company differentiates itself by offering competitive pricing and unique service combinations. (Respondent: Unidentified_5)
Q: What is the rationale behind making a subsidiary a wholly-owned entity?
A: The move is part of a strategy to consolidate subsidiaries and streamline operations. The cash outflow for this transition is minimal, and it aligns with the company's long-term goals. (Respondent: Unidentified_5)
Q: How is GTPL Hathway addressing the recent price hikes by broadcasters?
A: The company is assessing the situation and engaging with broadcasters to determine the best approach for passing on price hikes to consumers. The impact on subscriber count and financials is being evaluated. (Respondent: Unidentified_5)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.