Indian multi system operator (MSO) Hathway Cable and Datacom has recorded a standalone net loss for the three months to 30 March to just under INR 68 million, compared with an INR 175.48 million loss in the same period last year.
Hathway's operational losses, before other income, financial costs and exceptional items, were also reduced to INR 38.48 million compared to INR 70.57 million in the fourth quarter 2011.
Net sales jumped 16.33%, reaching INR1.34 billion in the quarter, compared to INR 1.15 billion in the same period of the financial year ended 30 March 2011. Net sales from the third quarter 2012 amounted to INR 1.26 billion.
In a quarter which saw the launch of Hathway's high definition (HD) TV bouquet, the MSO's total expenses rose by 6.7% to INR1.39 billion, while the pay channel cost increased to INR 387.93 million from INR 342.53 million a year earlier.
Hathway has so far used INR 4.06 billion from the INR 4.8 billion raised by its initial public offering (IPO). Just over half of this has gone on digital television capital expenditure, services, set top boxes, and broadband infrastructure – for example, the company has set up another digital headend to serve for the north and north west areas of Delhi.
"Hathway benefits as it is present in three of the four cities which form part of Phase 1 [digital cable] roll out, ie Mumbai, Delhi and Kolkata, either directly or through its JV (joint venture) partners," the company statement said.
"The company has cumulatively achieved a landmark of over two million STBs (set top boxes) in its universe and is consequently well placed to gain from Phases 1 and 2 of the DAS roll-out."
Another INR 1.89 billion of the IPO funding has been utilised by Hathway to pay back loans, while INR 123.34 million has been spent on customer acquisition.