NXTDIGITAL posts revenue of Rs 249.5 crore in Q3 FY22
The company recorded an EBITDA of Rs 52.9 crore as against Rs 47.81 crore in the corresponding quarter last year
Hinduja Group's media vertical NXTDIGITAL, which has a presence in digital cable, satellite (HITS), broadband, content syndication and tele-shopping, has announced its results for the 9-month period ending 31st December 2021 and Q3 of FY22.
The company's consolidated revenue from operations has declined to Rs 249.5 crore in Q3 FY22 from Rs 251.1 crore in Q3 FY21. Expenses increased to Rs 303 crore from Rs 284.7 crore in the corresponding quarter last year. The company reported a net loss of Rs 26.5 crore compared to a net profit of Rs 1.69 crore. It recorded an EBITDA of Rs 52.9 crore as against Rs 47.81 crore a year ago.
NXTDIGITAL’s total revenue grew to Rs 807.6 crore during the nine months ended December 31, 2021, as against Rs 715.71 crore, clocking a growth of 12.84%. During the same period, the EBITDA was Rs 155.8 crore as against an EBITDA of Rs 149.81 crore during the corresponding period of the previous year, at a growth of 4.01%.
The Board acknowledged the confidence reposed by the shareholders in the company, its management, and its vision – reflected in the success of the Rights Issue which was subscribed 1.91 times the issue size of Rs 288.61 crore.
As of 31st December, a debt of Rs 260 crore has been repaid in line with the objects of the Rights Issue. The Board also acknowledged the completion of the land sale in January 2022 for a consideration of Rs 69.30 crore, well within the timeline set forth by the Board for completion. With the successful completion of these two activities that were announced at the start of this fiscal, the company has reduced its debt-to-equity ratio from over 4 at the start of this fiscal to a healthy 1.5.
The Board took note of the progress on the acquisition of the digital and media businesses by Hinduja Global Solutions Limited (HGSL) which is subject to all statutory or regulatory approvals and approval of the shareholders. The move will fuel the expansion plans of NDL in the digital space, as it looks to harness analytics and automation to grow its digital portfolio across video, broadband, OTT, and Wi-Fi services. The Company has appointed independent valuers to carry out the valuation exercise and will submit a detailed report including the share exchange ratio once ready.
NDL reiterates its commitment to ensuring shareholder value creation; reflecting its long-standing commitment to minority shareholders and the critical role they have played in facilitating NDL as an “incubator” to spawn significant digital platforms. In accordance with this philosophy, post the proposed acquisition; the company will review and assess proposals received, to define new business verticals for the future that will be moulded on the same lines, defining a robust roadmap for growth.
Commenting on the results, NXTDIGITAL MD & CEO Vynsley Fernandes said, "Our Q3 strategy hinged on leveraging our unique technology, national footprint and our digital product portfolio to adapt to changing customer preferences vis-à-vis consumption of digital services. Whether our broadband push, our roll-out of NXTHUBs nationally or the launch of the first “combo” product covering digital TV, OTT and broadband – our focus was on giving our customers a unique digital user experience."
NXTDIGITAL has already rolled out 66 NXTHUBs across the country, each with the advanced technological capability of offering customers digital television, broadband and OTT. The focus will remain on not just rolling out more NXTHUBs but also increasing the product capability that could extend shortly to Wi-Fi and other e-services. Broadband will remain a key driver for growth, as it continues to proliferate into NXTDIGITAL markets offering currently digital television only. The “combo” product offering nationally and operationalisation of its infrastructure sharing platform further drive growth as the media group continues on its path of digital transformation.
