SITI CABLE ACQUIRES 50% STAKE IN MSO ASSAM

Siti Cable acquired 50% stake in Assam-based independent multi-system operator (MSO) Axom Communications & Cable (ACC). The acquisition is made through Siti Cable’s subsidiary Indian Cable Net Company Ltd (ICNCL. ACC, which is now an equal Joint Venture between the two companies will be named ACC Siti.

“Siti Cable has acquired 50% in Axom. We have acquired this company through ICNCL. We have three directors from our side and they will have two directors. The JV is already operational,” ICNCL director Suresh Sethiya told TelevisionPost.

ICNCL has operations in Bihar, Jharkhand, West Bengal and Odisha. It didn’t have operations in the northeast. “We are present in most of East India like Jharkhand, Bihar, West Bengal and Odisha. Northeast was the missing piece. Now we have presence there as well,” Sethiya noted.

On the other hand, Sanjive Narain, Director of ACC said: “It’s a 50:50 JV with Siti Cable. They have acquired 50% share in our company. The JV is called ACT Siti Cable.”

According to Narain, the partnership with Siti will help with faster expansion. The JV is targeting over one million subscribers in the northeast. In digital addressable system (DAS) Phase III, Axom has seeded 300,000 set-top boxes (STBs) in Assam.

“We did a JV to expand faster. In Phase III, we have seeded 300,000 STBs. We are targeting about a million subscribers in the next two years from northeast,” added Narain.

Siti Cable added 1.1 million digital video customers in Q3 2016

Siti Cable Network has added 1.1 million of digital video customers expanding its footprint and readying a fresh funding of INR 6.5 billion from the promoters. for the third quarter of the fiscal year 2015/2016. Siti Cable’s fiscal third quarter net profit stood at INR 560 million compared to a net loss of INR 229 million in the previous quarter. To recall, the multi-system operator (MSO) had reported a net loss of INR 160 million a year ago.

“The company has achieved the financial turnaround for the first time in its history. We expect this momentum to sustain in the coming quarters,” declared VD Wadhwa, executive director and CEO of Siti Cable.

Operating profit (EBITDA) stood at 159 per cent from the earlier year to INR 1.3 billion and grew by 152 per cent quarter-on-quarter (QoQ). Siti Cable’s revenue for the quarter stood at INR 3.75 billion, registering a 54 per cent QoQ and 68 per cent year-on-year (YoY) jump. Subscription revenue grew to INR 1.46 billion, from INR 1.39 billion in the previous quarter and INRs 1.36 billion a year ago.

On the other hand, the MSO deployed 1.1 million set-top boxes (STBs) in the quarter, activation revenue saw a big growth. While in the three-month period ended 31 December 2015 it stood at INR 1.05 billion, in the preceding quarter it was INR 194 million). In the year-ago period, it was at INR 136 million.

Siti Cable seeks shareholders’ approval for latest round of fund raising

Siti Cable Network has sought shareholders’ approval to raise USD 100 million. The multi-system operator plans to gather funds via equity shares via public issue, private placement or qualified institutional placement

According to the company, the funds will be used to expand network in DAS phase III and IV areas as well as build value added services, reports Indian Television. The funds will also be used to pare the company’s debts.

“The company sought shareholders’ approval to raise funds through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed rupee equivalent of $100 million,” the company said in its BSE filing.

Back in October of 2014, the company’s shareholders had approved a proposal of raising USD100 million (INR6.42 billion). Siti Cable was, however, able to raise of INR2.21 billion until March of 2015, according to Television Post.

Siti Cable wins MHA security clearance

Ministry of Information & Broadcasting (MIB) has announced that Siti Cable has won security nod from the Ministry of Home Affairs. The clearance takes the Subhash Chandra-promoted cable company a step closer to receiving a permanent multi-system operator licence.

Siti Cable representative Vishwa Bandhu Sharma was informed of the MHA’s decision at the third Open House meeting between MIB officials and MSO representatives. The meeting was held on 22 June.

The current permanent MSO registrations stands at 194. Thirty new MSO licence were approved recently to quicken the rollout of the third leg of Digital Addressable System. MIB has also announced that it will be giving provisional permits to companies, provided that they submit an affidavit stating that they don’t have a criminal history.

According to Dataxis Intelligence, Siti Cable had 4.07 million subscribers for the first quarter of 2015. Siti Cable, owned by Essel Group, recently posted an operating profit of INR 321 million for the quarter that ended 31 March, 2015.

Siti Cable posts INR2.22bn revenue in Q3 FY 2015

Siti Cable Network has recorded a consolidated revenue of INR2.22 billion in third quarter FY2015 as compared to INR1.64 billion in Q3 FY 2014. It incurred a net loss of INR204 million in the quarter ended December 2014 as against INR 179 million in the quarter ended December 2013.

The MSO said that its direct point subscriber base stands at nearly 40,000 as of 31 December, 2014 - it commenced acquisition of direct customers from last mile operators during the second quarter of 2015.

The company’s EBITDA stood at INR500 million in the third quarter FY 2015 as compared to INR300 million in the third quarter FY 2014. EBITDA rose 9.4% quarter-on-quarter.

During the third quarter, it seeded over 250,000 set-top-boxes. It has a digital subscriber base of 4.85 million and 5.5 million analogue subscribers, at the end of this quarter. Recently, the multi-system operator upgraded its existing digital head-end at Bengaluru to Ericsson and Harmonic.

“Last-mile operators have realised that digitisation is a reality now. We see less resistance against digitisation from the LCOs in Phase III and IV towns. In fact, they see digital cable STB as an opportunity to offer more channels and better services to their consumers and realise better revenues from their existing customer base. It also helps them in retaining their customer, who would otherwise move to competing technology like DTH for better quality services,” said VD Wadhwa, ED and CEO of Siti Cable.

Delhi Government slaps INR331 mn fine on Siti Cable

The government has slapped a INR331.2 million fine on Siti Cable Network Ltd, saying that the company has failed to pay its entertainment tax dues. Multi system operator (MSO) Siti Cable has denied the tax fraud allegation.

The MSO added that it has not received any notice regarding the order passed by Entertainment Tax Department, Government of Delhi. According to the government, Siti Cable has been involved in a “tax fraud” since April, 2013. The company, collected INR20 from each of its 536,616 subscribers or about INR130 million in total. Siti Cable, however, paid only INR46.3 million in taxes.

“It has been found that this company has committed a serious illegal act of tax evasion by duping the government despite having collected the amount in the name of taxes from its innocent customers,” government said in a statement, reports Press Trust of India.

The Delhi government has now slapped a 100% penalty on the outstanding tax amount of INR83.2 million). The MSO will also have to pay Rs 30.6 million under the relevant provisions of Delhi Entertainments and Betting Tax Act 1996. ”The complete assessment, including additional tax, penalty and interest for the financial year 2013-14, which this company now has to pay to the government stands at Rs 19.71 crore,” government said, according to PTI. Siti Cable has been asked to deposit INR331million by April 22, 2015.

In a statement to Bombay Stock Exchange, Siti Cable denied charges of entertainment tax evasion. .  “It (Siti Cable) has already challenged the vires of the Delhi Entertainment and Betting Tax Act, 1996 vide its Writ Petition being No. 427 of 2014 which is subjudice before the Hon ble Delhi High Court,” the company told BSE.

Siti Cable raises INR2.21 billion through QIP

Siti Cable has raised INR2.21 billion through Qualified institutional placement (QIP). It has issued over 63.17 million shares at INR35 per share. It had earlier planned to raise over INR2.50 billion. The firm will utilise the funds for expansion of digital cable television and broadband footprint.

HDFC Trustee Company along with its sister concerns has purchased 50% of shares i.e 31,587,270 – HDFC Equity Fund (picked 26,533,000 shares for INR928.6 million), HDFC Core and Satellite Fund (1,516,000 shares for INR53 million)) and HDFC India Tax Saver Fund (3,538,270 shares for INR123.8 million).

The other investors include Polus Global Fund (has invested over INR504.9 million), Orange Mauritus Investments (INR119.9 million), Macquarie Emerging Markets Asian Trading (INR52.5 million), Reliance Capital Trustee (INR149.9 million), Copthall Mauritius Investment (INR185.3 million) and Morgan Stanley Asia (INR92.6 million).

Siti Cable has target to add over 10 million digital subscribers. As on 31 December, 2014, its digital subscriber base stood at 4.85 million.

Siti Cable posts INR2.22bn revenue in Q3 FY 2015

Siti Cable Network has recorded a consolidated revenue of INR2.22 billion in third quarter FY2015 as compared to INR1.64 billion in Q3 FY 2014. It incurred a net loss of INR204 million in the quarter ended December 2014 as against INR 179 million in the quarter ended December 2013.

The MSO said that its direct point subscriber base stands at nearly 40,000 as of 31 December, 2014 - it commenced acquisition of direct customers from last mile operators during the second quarter of 2015.

The company’s EBITDA stood at INR500 million in the third quarter FY 2015 as compared to INR300 million in the third quarter FY 2014. EBITDA rose 9.4% quarter-on-quarter.

During the third quarter, it seeded over 250,000 set-top-boxes. It has a digital subscriber base of 4.85 million and 5.5 million analogue subscribers, at the end of this quarter. Recently, the multi-system operator upgraded its existing digital head-end at Bengaluru to Ericsson and Harmonic.

“Last-mile operators have realised that digitisation is a reality now. We see less resistance against digitisation from the LCOs in Phase III and IV towns. In fact, they see digital cable STB as an opportunity to offer more channels and better services to their consumers and realise better revenues from their existing customer base. It also helps them in retaining their customer, who would otherwise move to competing technology like DTH for better quality services,” said VD Wadhwa, ED and CEO of Siti Cable.

Siti Cable raises INR 1.02 bil. towards cable digitisation

Indian multi system operator (MSO), Siti Cable, has received a cash injection of INR 1.02 billion (USD 17 million) from its promoters – led by Zee and Essel group chairman Subhash Chandra – to speed up its cable digitisation activities. The company earlier reported that it was aiming to digitise 6-7 million homes out of a total 90 million homes in Phases III and IV activities at a gross cost of INR 12 trillion (USD 199 million).

Siti told the Bombay Stock Exchange (BSE) that the cash injection was the second of four tranches to raise a total of INR 3.24 billion. Siti received the first tranche of INR 810 million (USD 13 million) in March 2013 and has until September this year to draw the remaining funds.

According to Dataxis, Siti Cable had over 3.7 million digital cable TV subs in India at the end of 2013.