India fastest growing direct-to-home service provider Airtel Digital TV an associate of Bharti Airtel has recorded a sharp rise in their EBITDA in the fiscal ended 31 March 2014 as it added closed to one million subscribers during this 12-month period.
The company posted a 638 per cent jump in EBITDA in FY14 to Rs 333.8 crore (Rs 3.34 billion) compared to its earlier-year operating profit of Rs 45.2 crore (Rs 452 million). EBITDA margin stands strong at 16.1 per cent compared to 2.8 per cent a year ago.
Airtel Digital TV’s subscriber base has grown to 9.01 million, from 8.1 million in the prior year, which enabled it to report revenues of Rs 2,077 crore (Rs 20.77 billion) in FY14. In the previous fiscal, the DTH company had reported a turnover of Rs 1,629 crore (Rs 16.29 billion).
In the fiscal fourth quarter, Airtel Digital TV accounted for four per cent of Bharti Airtel’s total revenue. The segment contributed Rs 96.3 crore (Rs 963 million) or two per cent to the company’s overall operating profit (EBITDA).
Increased subscriber base and DTH services penetrating the length and breadth of the country (available in 639 districts), helped Airtel Digital TV to achieve higher revenues besides contributing to the company’s overall performance.