GTPL Hathway

GTPL Hathway reported a consolidated total revenue of INR8,989 million for Q4 FY25, marking a 10% Y-o-Y growth. The consolidated reported EBITDA stood at INR1,144 million with a margin of 12.7%, while operating EBITDA was INR1,021 million at a 22% margin. Net profit attributable to the parent was INR105 million. For the full FY25, consolidated total revenue grew 8% annually to INR35,072 million, with reported EBITDA at INR4,625 million (13.2% margin) and operating EBITDA at INR4,163 million (22% margin). Standalone figures for Q4 FY25 showed total revenue of INR5,693 million (10% Y-o-Y growth) and net profit of INR80 million.

As of March 31, 2025, the Digital Cable TV subscriber base reached 9.60 million, with 8.90 million paying subscribers. The annual increase in active and paying subscribers was 100K. Management noted a dip in subscription income by INR28 crores annually, partly due to competitive rates and attractive schemes in new markets. The industry experienced higher churn in Q2 and Q3 FY25 due to new content providers and OTT players, which slowed subscriber additions from an expected 0.5 million to 100,000 for the full year. However, the market has neutralized from Q4 onwards, and the company expects to return to adding over 0.5 million subscribers next year.

The active broadband subscriber base stood at 1.045 million at the end of Q4 FY25, adding 25,000 new subscribers, representing a 2% Y-o-Y increase. Homepass grew by 2.5% annually, adding 150K to reach 5.95 million, with 75% available for FTTX. Broadband ARPU for Q4 FY25 was INR465, an increase of INR5 compared to FY24, and average data consumption per month was 396 GB, an 11% Y-o-Y increase. Slower growth in the broadband business was attributed to increased offerings from telcos and the '5G euphoria' in the market, which temporarily impacted additions. Management is optimistic that increasing data prices by telcos will benefit wired broadband.

GTPL Hathway has been awarded the much-anticipated HITS license, enabling it to operate and maintain HITS services for a period of 10 years. This new broadcasting mechanism is expected to bring significant efficiencies in terms of cost and reach. The company continues to evaluate organic and inorganic growth avenues, focusing on expanding its total addressable market and leveraging strong relationships with LCOs and B2B partners for broadband penetration. The overall strategy emphasizes efficiency, consumer acquisition, and retention through value-accretive products and technology.

GTPL Hathway has participated in the BharatNet project with LC Infra as a consortium partner and expects to receive an APO (Award of Project Order) within 15-30 days for Haryana and North-East. The company views government initiatives to build digital infrastructure as beneficial, as it relies on infrastructure created by third parties. The Gujarat model, where GTPL has an MoU with the government for infrastructure revenue sharing, is stable and successful, covering over 15,000 villages. GTPL plans to replicate this model in other states once current projects are completed, with the last-mile capex being on their side.

Management is targeting a return to an 18% CAGR for revenue and a 9% CAGR for EBITDA in FY26, aligning with historical performance over the last 8 years. The operational EBITDA margin is expected to be maintained at 22-23% and is targeted to improve to 24-25% over time. The company aims to increase Cable TV subscriber additions back to over 0.5 million annually. Broadband revenue CAGR is expected to be maintained at 17%. Management believes these targets are achievable through better subscriber additions and strategic business structure changes.

Total capex for FY25 was INR355 crores, with INR230 crores allocated to CATV and INR125 crores to broadband. Historically, GTPL has invested INR300-400 crores in optical fiber cables over the last 5-6 years, laying over 1 lakh kilometers and creating 6-6.5 million homepasses. The company's net debt negative position has turned to a minor debt positive, which management attributes to ongoing capex for implementing new platforms. They expect to return to a net debt negative position once the implementation is complete and business benefits start accruing. A dividend of INR2 per share (20% of face value) has been recommended for FY25.