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Monday, 23 March 2020 14:15

Kerala based cable operator KCCL reports slowdown in profit in FY19

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As there has been a decline in the activation charges in the last two years, and post the revised regulations of TRAI, there has been a revision in revenue sharing between LCO and MSO as well as changes in the rates of most channels, the Kerala Communicators Cable Limited (KCCL) has posted a net profit of Rs 4.92 crore for the fiscal ended 31st March 2019 which is a decline of 36.1% compared to Rs 7.70 crore in the previous fiscal.

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.

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