GTPL Hathway Adds 230,000 Broadband Users, Users Consume 212GB Data Per Month

The company sees “growth opportunities” in a hybrid model bundle with broadband, cable TV and OTT services.

GTPL Hathway Broadband

ICICI Direct on Wednesday said that the “strong operating performance” registered by GTPL Hathway in the fourth quarter of 2021 financial year has been a “result of remarkable growth in the broadband segment.” According to the report released by ICICI Direct, one of the largest retail broker and financial product distributors in India, GTPL Hathway’s broadband segment registered “stupendous growth” while its cable TV business remained “stable.” GTPL Hathway on April 16, 2021, announced the financial results for the quarter ended March 31, 2021, with the company recording an 77% year-over-year (YoY) increase in its consolidated broadband revenue. The company said that the revenues from its broadband segment touched Rs 81.7 crore in its fourth quarter of the previous financial year. In the third quarter of the 2021 financial year, GTPL Hathway recorded Rs 77.8 crores from its broadband segment.

GTPL Hathway Adds 230,000 Broadband Users in FY21

GTPL Hathway said that it added 230,000 net broadband users in the 2021 financial year with 45,000 net additions recorded in its fourth quarter.

The company said that the data consumption per user touched 212GB per month as on March 2021 as compared to 162GB per month in March 2020, translating to an 31% YoY increase. GTPL Hathway said that the average revenue per user (ARPU) in the broadband segment touched Rs 445 for the 2021 financial year translating to an 5% YoY increase.

Further, GTPL Hathway said that the consolidated subscription revenues from its cable TV segment touched Rs 266.5 crore in its fourth quarter of the 2021 financial year. In the third quarter of the previous financial year, GTPL Hathway recorded Rs 271.8 crores from its cable TV segment.

“The highlight of FY21 was the growth in subscription revenues for both CATV and Broadband business, strong profitability, net-debt free status, geographical expansion, healthy balance sheet and improved return ratios,” Anirudhsinh Jadeja, managing director of GTPL Hathway, said in a release.

In its report, ICICI Direct highlighted that GTPL Hathway added 500,000 residential cable TV users in the 2021 financial year while losing “nearly same number” of commercial users “due to the pandemic.”

“The company maintained [a] target of 50% growth in cable TV subscribers over the next three years on the back of expansion in newer markets and also through inorganic route,” ICICI Direct said in its report. “GTPL’s hybrid STBs are expected to be launched in Q1FY22E.”

Turning Wireline Broadband Into Growth Driver

In its investor presentation, GTPL Hathway said that it sees “growth opportunities” in the wireline broadband segment. The company said that the wireline broadband has a 6% penetration in India as compared to 80% in Japan, 70% in Eurozone and 55% in China.

In late March, the Telecom Regulatory Authority of India (Trai) in its Telecom Subscription Data highlighted that the country has 22.67 million wireline broadband users as on January 31, 2021. In comparison, there were 734.94 million wireless broadband users in the same period.

GTPL Hathway citing Trai Performance Indicators Report highlighted that India witnessed an 10% increase in the wireline broadband user base between the second quarter of the 2021 financial year and the fourth quarter of 2020 financial year. The company said that its wireline broadband user base increased 32% in the same period.

The Trai Performance Indicators Report for the quarter ended September 30, 2020, highlighted that GTPL Hathway is the ninth largest internet service provider in India. The Trai report released in late January 2021, highlights that Reliance Jio, Bharti Airtel and Vodafone Idea are the top three internet service providers in India. The state-run Bharat Sanchar Nigam Limited, Atria Convergence Technologies, Hathway Cable and Datacom, Mahanagar Telephone Nigam Limited and You Broadband were ahead of GTPL Hathway.

Further, GTPL Hathway in its investor presentation said that it sees “growth opportunities” in the hybrid model that would enable the company to offer cable TV services as a “bundle.” The hybrid bundle would include broadband and Over-the-Top (OTT) services with the company inking deals with “different service providers.”

GTPL Hathway also said that it would expand its footprint in its current markets and “venture into new markets through acquisitions and consolidations.” The company is said to have a presence in over 800 towns across 15 states in India with a “significant presence” in Maharashtra, Andhra Pradesh, Telangana and the Northeast.

Born in India, Yogesh loves to travel and has lived in multiple countries including New Zealand and Canada. His bylines can be found on various newspapers and blogs throughout the world, including Vancouver Sun, Surrey Now-Leader, Daily Hive , Investing News Network and Rach F1.

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