March 01, 2017 / 10:46 IST
Q3FY17operational performance was driven by 0.5 mn addition in digital cable subs (phase III cities) to 9 mn; monthly collections stood flat QoQ in phase I/II (at Rs 103 and Rs 78), but improved in phase III (Rs 40 vs. 25 in Q2) – expected to improve post phase IV deadline in FY18.To improve its collections further, Siti moved to prepaid model in select states (1 mn subs migrated) - pan-India roll out on the cards.
Outlook
We expect Sitito benefit from gradual monetization of phase III digital subscribers, given its strong reach and superior on-the-ground execution. Our TP stands at Rs 36 (10x FY18E EV/adj. EBITDA). Maintain HOLD given limited upside from CMP.
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