NXTDIGITAL today announced its results for the first quarter of the current financial year – a quarter that was significantly impacted by the Covid pandemic. Against this challenging backdrop, the company continued its growth story, with revenues for Q1 standing at Rs. 234.82 crores.
On a consolidated basis, revenues grew by 3.4% on a sequential basis over the previous quarter and 2.7% over the same quarter of the previous year. The Company posted an EBIDTA of Rs.50.36 croresfor the quarter; posting a growth of 99% on a sequential basis over the previous quarter and 2.6% on a year-on-year basis.
The Company today stated that the company has not only been able to maintain its subscriber base but even grow its video and data businesses, in spite of the serious negative sentiments of the pandemic. The Company has maintained its collection efficiency of over 99.5% under its prepaid collection model.
The Board considered a capital raising exercise as any other business item in the agenda and has constituted a committee of directors to analyse and explore various options including Preferential Allotment, Rights Issue or such other means as the Board may consider appropriate for an amount up to Rs.500 Crores.
The Board appointed Mr. Amar Chintopanth who is Chief Financial Officer of the Company as Whole Time Director and Chief Financial Officer and Key Managerial Person of the Company with immediate effect pursuant to provisions of Section 203 of the Companies Act, 2013.
NXTDIGITAL launched a series of key initiatives during Q1 to counter the challenges of the pandemic, whilst ensuring the safety of all its personnel, its franchisees and other ecosystem partners. The company looked to focus on three key aspects during the difficult quarter.
Accelerated “digital payment” adoption by subscribers – the company worked actively to ensure nation-wide adoption of “digital” and “contactless” subscription collection models. Over 85% of the franchisee base today collects subscriptions from customers digitally, including using “Easebuzz”, a digital collection platform that NXTDIGITAL partnered with, even before the lockdown was implemented.
Focused on content innovation to ensure subscribers remained connected and had access to their favorite content – launched innovative content packages like the “VisheshManorajan Pack” where customers could enjoy over 400 channels for a small fee; whilst facilitating a credit period for Local Cable Operators (LCOs) facing challenges to physically collect.
Implemented a meticulously crafted Business Continuity Plan – focused on ensuring uninterrupted services to customers through putting in place effective L3 processes for various technical and operational functions; whilst ensuring safety of all personnel.
Commenting on the Q1 performance, Vynsley Fernandes, Chief Executive Officer, NXTDIGITAL Ltd. reiterated that “As an essential service providing critical video and data connectivity, it was and is imperative to step up and deliver uninterrupted services to customers whilst ensuring, without exception, the safety of our personnel, our partners and ecosystem. The performance in Q1 against the challenging backdrop is a reflection of those carefully thought out and implemented strategies, consistent innovation and the singular commitment to our customer base.”
Vision for Growth
NXTDIGITAL continues to focus on consolidating and growing its serviced subscriber base, expected to cross 10 million; including onboarding of more than 5 million of managed services customers. The potential base for managed services stands at over 69 million cable TV customers today – comprising smaller independent and regional MSOs. A significant portion of these customers are in semi-urban, semi-rural and rural markets; where NXTDIGITAL has a growing presence by virtue of being able to deliver digital services to any part of the country through its HITS platform.
It is also developing innovative products and solutions to leverage the onset of the festival season and help customers derive maximum value. The “NXTGO” solution is an innovative dongle-type device that can be plugged into an OTT Set Top Box (STB) or an Android-based television and provide immediate access to “live” television channels – securely. The “NXTCONNECT” STB, a next-generation solution, is a single device for customers to access “live” television channels, OTT content, social and other apps, games & much more.
The company, continuing to build on its Hinduja Group principle of “Partnership for Growth”, is also working with partners to launch a Cloud-based mobile app- allowing customers to gain easy access to local services in their community, managed by NXTDIGITAL LCOs. The objective is to build a strong ecosystem of local merchants around the LCO – connecting merchants to consumers, seamlessly; thereby facilitating a new revenue stream for its thousands of LCOs.