The company plans to invest Rs 450-500 crore in capital investments each year. Capital expenditures will be split equally between the cable TV and broadband segments.
In fiscal year 23, GTPL Hathway’s capital investment was Rs 468.5 crore, of which Rs 225 crore was allocated to broadband and the remainder to cable television.
“We are looking forward to investing Rs 1400 crores in the next three years. We keep our capital investment at Rs 450 crore to Rs 500 crore (annually). In fiscal year 23, we made an investment of Rs 468.5 crore,” he said. Piyush Pankaystrategy director, GTPL Hathway, at the company’s fourth-quarter earnings conference.
Pankai said the company’s broadband investment has been invested in expanding home passes, attracting new customers and technology. In cable television, the company is making capital investments to move customers from MPEG-2 to MPEG-4 technology, in addition to cable headend and customer acquisition/retention.
Despite the over-the-top (OTT) onslaught, Pankaj is confident that cable television business will continue to grow and generate cash for the company. He said there are 100 million television-less households that can be drawn into the pay TV ecosystem. He also sees acquisition opportunities for the company as much of the cable TV industry is still unorganized. Moving forward, GTPL Hathway intends to combine cable, broadband and OTT services under one roof as the company’s pipe can be used to provide multiple services.
“We need to bring these businesses together, consolidate these offerings, make them more profitable for customers and expand our services,” he added.
In December 2022, GTPL Hathway launched the GTPL Genie+ OTT aggregation service for its customers in partnership with over 15 streaming services.
Pankai said the Genie+ service has attracted 12,000 subscribers, including 8,000 broadband subscribers and about 4,000 cable TV subscribers.
In fiscal year 23, GTPL Hathway net income fell 43% to Rs 114.5 crore while income increased by 12% to Rs 2,714 crore. The company has 8.95 million cable TV subscribers and 0.92 million broadband subscribers.