Cable TV
Lower carriage and internet subs fees pull down Ortel numbers in first quarter
BENGALURU: A forty four percent year-on-year (y-o-y) decline in carriage fees and a thirty five percent y-o-y decline in internet subscription fees for the quarter ended 30 June 2017 (Q1-18, current quarter, first quarter of fiscal 2018) resulted in decline of some major numbers for Ortel Communications Limited (Ortel). The company has reported a net loss of Rs 29 million in Q1-18 as compared to a profit after tax of Rs 1 million in Q1-17.
Ortel reported carriage fees of Rs 62 million for Q1-18 as compared to Rs 89 million in the corresponding year ago quarter. Despite a 4.5 percent increase in cable subscription fees, the company’s Total cable TV services revenue declined 5.5 percent in the current quarter to Rs 371 million as compared to Rs 384 million in Q1-17. Ortel reported cable subscription fees of Rs 288 million as compared to Rs 277 million in the corresponding year ago quarter. Connection fees rose to Rs 21 million in the first quarter of fiscal 2018 as compared to Rs 18 million in Q1-17.
Ortel reported internet subscription revenue on lower Average Revenue per user at Rs 57 million for Q1-18 as compared to Rs 88 million in Q1-17. Internet connection fees declined to Rs 4 million in the current quarter as compared to Rs 7 million in Q1-17. Overall broadband revenue declined 35.8 percent y-o-y in Q1-18 to Rs 61 million as compared to Rs 95 million in Q1-17.
Coupled with a 13.8 percent decline in Ortel’s Infrastructure and Leasing segment revenue, the company’s total operating revenue declined 8.6 percent y-o-y in the current quarter to Rs 468 million from Rs 512 million.
Subscription number, ARPU
The company’s cable TV and internet subscriber bases declined quarter-over-quarter (q-o-q). Ortel’s cable TV subscriber base in Q1-18 was 747,528 in Q1-18 as compared to 750,471. Broadband subscriber base in the current quarter declined to 70,273 from 73,087. Cable TV ARPU for the current quarter declined by Rs 1 to Rs 137 from Rs 138 in the immediate trailing quarter. In Q1-17, the company has reported a much higher Cable TV ARPU at Rs 157. Broadband ARPU in Q1-18 was substantially lower at Rs 267 as compared to Rs 319 in the immediate trailing quarter and Rs 401 in the corresponding year ago quarter.
Major Expense heads
Ortel’s total expenses in the current quarter declined 7.7 percent y-o-y to Rs 359 million from Rs 389 million. Programming cost increased to Rs 115 million in Q1-18 as compared to Rs 100 million in Q1-17.Broadband bandwidth cost increased to Rs 25 million from Rs 22 million. Digital bandwidth cost increased to Rs 15 million from Rs 13 million. Employee benefits expense declined to Rs 54 million from Rs 62 million. Finance costs increased to Rs 71 million from Rs 64 million. Other expenses in the current quarter declined to Rs 114 million from Rs 135 million in the corresponding year ago quarter.
Company speak
Ortel managing director and CEO Bibu Prasad Rath said, “This has been a challenging period for the Company as intense competition in our core markets and new subscriber integration issues in new markets continued to impact our performance. The management team is working towards improving our position and expect to deliver better results by the end of this fiscal year. While we are evaluating fund raise possibilities to bridge our short-term capital requirement, our focus in FY18 would be to consolidate the operations and improve the operational matrix which would result in notable cash flow generation. Overall, we remain confident of the strength of fully controlling the ‘last mile’ network and the B2C business model, which we believe will enable us to tide over this difficult period.”
Cable TV
Hathway Cable appoints Gurjeev Singh Kapoor as CEO
Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure
MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.
Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.
Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.
Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.
The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.
An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.
Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.
Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.
