GTPL Hathway (GTPL) Q2 24/25 earnings summary

Executive summary

• Maintained market leadership in cable TV and broadband, connecting over 12 million households in 1,500+ towns across 23 states, with ongoing focus on customer experience and technology upgrades.

• Digital cable TV subscribers grew 1.6x and broadband subscribers 4.2x over the last 7 years, with consistent revenue and EBITDA growth.

• Launched GTPL Buzz app, integrated chatbot GIVA, and revamped website to enhance digital engagement and service offerings.

• Standalone and consolidated unaudited financial results for Q2 and H1 FY25 were approved and reviewed by the Board and Audit Committee.

• Statutory auditors issued an unmodified limited review report for both standalone and consolidated results.

Financial highlights

• Consolidated revenue grew 9% year-over-year to INR 8,620 million for Q2 FY25; standalone revenue rose 6% year-over-year to INR 5,452 million.

• Q2 FY25 consolidated EBITDA was INR 1,138 million (margin 13.2%), net profit stood at INR 129 million; standalone EBITDA at INR 651 million (margin 11.9%), net profit INR 141 million.

• Standalone revenue from operations for Q2 FY25 was Rs. 5,390.34 million, with net profit after tax at Rs. 139.67 million; consolidated revenue from operations for Q2 FY25 was Rs. 8,555.64 million, with net profit after tax at Rs. 137.40 million.

• Q2 FY25 consolidated EBITDA declined 16% year-over-year; PAT down 62% year-over-year.

• Net debt to equity remained low at 0.1x as of September 30, 2024.

Outlook and guidance

• Revenue growth guidance revised to 15%-17% for FY25, down from earlier 20%, due to Q2 softness.

• EBITDA expected to match or exceed last year’s INR 511 crore, with operating margin targeted at 24%.

• Broadband subscriber base projected to grow by 100K-120K annually over the next four years.

• Industry consolidation and inorganic acquisition opportunities expected to drive further growth in cable TV; broadband business poised for high growth leveraging B2B model and rural penetration.

• Bundling of cable TV and OTT services expected to reduce churn and increase ARPU.