MUMBAI: Ortel Communications Limited (Ortel), one of the leading cable television and high speed broadband service providers focused in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Telengana, West Bengal and Madhya Pradesh, announced its financial results for the quarter and nine-months ended 31 December, 2016.
Ortel has built a two-way communication network for ‘Triple Play’ services (video, data and voice capabilities) with control and focus over the ‘Last Mile’ network. Ortel has pioneered the primary point cable business model in India by offering digital and analog cable television, broadband and VAS services. It covers an addressable market of close to five million homes.
9M FY2017 performance overview compared with 9M FY2016
• Total Income increased to Rs. 1,590million, from Rs. 1,416 million, up by 12.3%
• EBITDA stood at Rs. 428 million compared to Rs. 519 million
o EBITDA margin came in at 26.9%
• Profit After Tax came in at Rs. 6 million compared to Rs. 92 million
• EPS amounted to Rs. 0.21per share Q3 FY2017 performance overview compared with Q3 FY2016
• Total Income increased to Rs. 518 millionfrom Rs. 502 million, up by 3.2%
• EBITDA stood at Rs. 118 millioncompared to Rs. 187 million
o EBITDA margin came in at 22.8%
• Net Loss stood at Rs. 28 million compared to Net Profit of Rs. 39 million
• EPS amounted to Rs. -0.92per share
Commenting on the performance, Ortel Communications president & CEO Bibhu Prasad Rath said, “Our performance during the quarter was impacted due to a combination of factors which weakened some of our key operating parameters. In spite of this, we have demonstrated a healthy growth in revenues from both Cable TV and Broadband Business on a Y-o-Y basis both for Q3 and 9M FY17. I am also happy to inform that our Business outside Odisha which turned EBIDTA positive last quarter has remained so during this quarter," he said.
"Overall, we have demonstrated that a strong B2C focused last mile business model in our core market can be profitable and remain confident of replicating the same across newer markets. We continue to believe that this is a sustainable model as we can capture the entire revenue stream across the value chain,” Rath added.
Ortel's business is broadly divided into cable television services comprising of analog cable television services, digital cable television services including other value added services such as HD services, near video on demand (NVoD), gaming and local content. Other focused business segments include broadband services, leasing of fibre infrastructure and signal uplinking services.
