17 August QFY16 Results Update | Sector: Media
SITI Cable Network
BSE SENSEX 27,878 Bloomberg Equity Shares (m) M.Cap. (INR b) / (USD b) 52-Week Range (INR) 1, 6, 12 Rel. Per (%) Avg Val(INRm)/Vol `000 Free float S&P CNX 8,477 SCNL IN 678. .7/0. / /2/ / .0
TP: INR48 (+37%)
Box switch-offs impact subscription; recurring EBITDA in line
EBITDA (ex-activation) in line: SCNL's EBITDA (ex-activation) was largely in line at INR248m as lower opex offset the sharp decline in subscription revenue. All revenue streams decline QoQ, ex-Broadband: SCNL reported an 11% QoQ decline in revenue (7% below est.) as all revenue streams declined except broadband. To enforce better monetization and collection efficiency from LCOs, SCNL switched off ~0.4m digital subscribers on a rotational basis. Consequently, subscription revenue declined 9% QoQ to INR1.29b (v/s est. INR1.52b). The impact of the switch-off is estimated to be INR100m-120m. Activation revenue declined QoQ--from INR211m to INR109m in 1QFY16 (v/s ...