Its profit before interest, lease, depreciation, and tax (PBILDT) dropped by 8.42% to Rs 30.01 crore as against Rs 32.77 crore. The PBIDLT margin of KCCL dropped from 63.85% in FY18 to 21.57% in FY19.
As reported, the revenue sharing was revised to 85:15 when compared to 65:35 between LCO’s and MSO’s coupled with rate revision of channels had affected the profit margins of KCCL.
Also, the scale of operations of the company witnessed a growth of 33% to Rs. 139 crore in FY19 against Rs. 104 crore in FY18. The subscription revenue grew by around 22% in FY19 vis-à-vis FY18 on account of the migration of subscribers from SD (Standard Definition) to HD (High Definition) channels. With a captive dealer network and subscriber base, KCCL offers broadband services at competitive rates, as it saves cost on marketing and distribution overheads.
At present, KCCL has a presence in all the 14 districts of Kerala and as of March 2019 has more than 25 lakh net subscribers. Long established relationship with customers maintained by LCOs provides the company with a competitive edge over other players.