Dear Valued Shareholders,
Our Company broadly experienced a favourable macroeconomic environment in FY 2018. Economic environment recovered quite well from the disruption caused by demonetisation, which was undertaken in FY 2017 and the teething issues of Goods and Services Tax (GST) introduced during the current year.
We continue to benefit from the current Government focus on Digital India with the Government taking forward significant investment in Bharatnet and Government’s focus on overall strengthening policy framework for broadband and Pay TV industry.
Digitally connected homes are having a profound impact on social, industrial and economic transformation happening around us. We are experiencing explosion of data which is leading to rapid shift in customer purchase and usage behaviour across products and services. This was evident by increase in our average data consumption per customer per month which has reached to 103 GB per month in FY 2018.
Financially, strategically and operationally FY 2018 was a successful year for Hathway. We delivered strong financial results, improving Consolidated Operating EBIDTA by 70% year-on-year (YoY) and improving consolidated PAT by ₹ 88 Cr.
The mobile telecom industry faced an extraordinarily turbulent year in India through unprecedented disruption. Price per GB for mobility data reduced by around 90% for retail customers. While it helped in growing mobility data consumption by six times, it also provided much cheaper options to our extremely low usage home broadband customers thereby creating short-term stress on our revenue and EBIDTA. While we expect this stress to last for another 12 months, which is the time being taken for realigning our customer base to high data guzzling users. We are also sure that this new mobility structure will ultimately help in the growth of home broadband. We already see early signs of mobility customers sampling low price data on mobility and then shifting to home broadband for binge watching their favourite OTTs and for overall much better user experience.
Investment for the future, transforming customer service experience and cost optimisation were the key drivers for Hathway story in FY 2018.