New Delhi: Integrated digital platforms company Nxtdigital, the media vertical of the Hinduja Group has reported a 15.48 per cent growth in its consolidated revenues for the half year ending 30 September. The revenue reached Rs 543.42 crore, up from Rs 470.58 crores for the corresponding period of the previous year.
The company with a presence in digital cable, satellite (Hits), broadband and content syndication announced its results for the quarter and half year ending 30 September on Thursday.
Nxtdigital continued to maintain a robust EBIDTA at Rs 102.89 crore for the half year, and ended the second quarter with a 17.38 per cent year-on-year revenue growth, closing at Rs 276.83 crore against Rs 235.76 crore in Q2 of the previous fiscal. It maintained a robust EBIDTA at Rs 51.63 crore.
The company attributed its revenue growth to its strategy and aggressive growth plans, with a clear focus on positive cashflows across business verticals.
The broadband business segment crossed 7.2 lakh subscribers. Nxtdigital also launched 40 future-ready Nxthubs across the country – each with digital capability of providing video, broadband and other emerging solutions including OTT and WiFi to distribute up to 650 digital TV channels received via satellite.
Even whilst the pandemic continued to have a bearing on the media and entertainment industry, Nxtdigital's business verticals continued to grow. Buoyed by the demand for internet connectivity across retail customers and enterprise businesses, the broadband business vide its subsidiary OneOTT Intertainment crossed 7.2 lakh subscribers, clocking a growth rate of 76 per cent in Q2 of the current fiscal over last year.
"Our performance in the first half of this fiscal reflects the company’s focus on growth, gradually emerging out of the challenges of the pandemic that still have a bearing on the media and entertainment industry," stated Nxtdigital CEO and MD Vynsley Fernandes. "Our strategy for the rest of this fiscal is premised on leveraging the strength of our solutions and our pan-India footprint of touch-points. With a network of Nxthubs offering a host of digital services – ranging from video and broadband, to OTT and WiFi; and layered by our growth in our broadband base and our infrastructure sharing platform – we believe we will not just see growth but also unlock value across our media businesses."
The company also informed that it continues to dispose off its non-core assets to reduce debt, and it has sold land held by it in Hyderabad for a total consideration of Rs 69.30 crore, originally acquired at an approximate cost of Rs 25 crore.
The Rights Issue announced on 13 May by the company - of two equity shares for every five equity shares held in the company, at an issue price of Rs 300 per share is scheduled to open on 15 November and close on 29 November.
For Q3 and Q4, Nxtdigital said it will continue on its aggressive growth strategy focusing on three key verticals, expanding its footprint through another 60 Nxthubs; continuing to grow its broadband base through a mix of combo products, organic and inorganic growth; and operationalising the infrastructure sharing model, which has now secured all necessary permissions to become India’s first digital content distribution PaaS platform.
