Axis Securities's research report on Hathway CableHathway(HATH) added 0.9 mn cable subs in phase III cities, which boosted its standalone performance; Broadband revenue grew ~10% QoQ on healthy subscriber ramp up (52k net additions to 567k). However, subscription revenue from phase I/ II cities was muted due to marginal growth in ARPU to Rs 102/ Rs 83 (Rs 100/ Rs 80 in Q2). HATH plans to phase out old cable packs and implement new simplified ones over the next 6-12 months; phase III collection to scale up Q2FY17 onwards toRs 50 and Rs 80 by FY17 end. While phase III STB seeding is encouraging, we expect teething problems in execution to continue for HATH, which will keep earnings under pressure.Maintain BUYwith TP of Rs 46 (12x FY17E EV/adj. EBITDA) on stock price correction. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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