Dish TV India Limited (Dishtv) reported a 19.2% increase in first quarter revenue to Rs. 7,367 million (Rs 736.7 cr), and PAT of Rs. 54.2 cr compared to a loss of Rs 15 cr in the previous year.
Subscription revenues rose 20.6% to Rs. 6,828 million. EBITDA margin recorded at 32.1% compared to 25.3% in the corresponding quarter last fiscal.
EBITDA for the quarter stood at Rs. 2,368 million compared to Rs. 1,565 million in the corresponding quarter last fiscal.
Despite Q1 being a relatively weak quarter seasonally, Dish TV said it had gained subscribers both in the Phase 3 and 4 markets as well as in the upmarket localities in the country.
Talking about the results, Mr. Goel said, “Led by robust subscriber additions and an improving ARPU, subscription revenues for the quarter increased 20.6% over the corresponding quarter last fiscal. EBITDA of Rs. 2,368 million recorded a significant 51.3% jump over the corresponding quarter. Net Profit for the quarter was Rs. 542 million compared to a loss of Rs. 150 million in the first quarter last fiscal. The resultant free cash flow was Rs. 689 million. Amid improving financial performance, churn for the quarter remained steady at 0.7% per month.”
Highlighting Dish TV’s performance, Mr. Jawahar Goel, Managing Director, Dish TV, said, “Our first quarter results are in line with the success of our regional and high definition (HD) strategy.”
Dish TV was the first DTH operator in India and remained the only one for quite some time. However, the company has seen its market leadership severely threatened in subsequent years with the entry of Tata Sky and most recently, Videocon D2h.
While Tata Sky is poised more towards the high-income customers, Videcon D2h has hit Dish especially hard with its low-priced offerings. Goel said Dish’s low-priced offering, Zing, will soon be launched in Kerala.
“It would carry the largest cache of vernacular channels offered in that market,” he said.
‘Zing’ cemented Dish TV’s position in the DAS Phase 3 & 4 markets with custom-made content, hardware and service packages for the regional audience.
“High definition continues to be a value driver and a key differentiator for us compared to other DTH offerings in India. Dish TV’s industry leading bandwidth capacity supports 42 HD channels, the largest on offer by any distribution platform so far,” Goel added.
In one of the most ambitious reforms ever announced for the media industry in India, Analog TV households are mandated to be digitized under the Digital Addressable System (DAS) notified by the Government. The impending DAS Phase 3 & 4 markets have an 80 million household potential, a large part of which is expected to be lapped up by the prominent DTH players in the country.
“Dish TV has been actively contributing to the ‘Digital India’ movement by digitizing analog TV homes in DAS phase 3 & 4 markets and remains optimistic about its prospects to acquire a substantial share in these markets. Continuing its focus on growth with profitability, the company delivered another quarter of encouraging financial results,” Mr. Chandra added.
Dish TV recently formed a content negotiating Joint Venture (JV) called ‘Comnet’ with its group company and multi system operator, Siti Cable Network Limited. Both Dish TV and Siti Cable are equal partners in the JV that came into existence on July 1, 2015.
As part of the JV, both companies will hold joint discussions with broadcasters post which separate direct contracts between the broadcaster and distribution platform will be signed. The JV also tends to bring together the industry on contentious taxation issues like the recent arbitrary hike in entertainment tax in Delhi.
Speaking on the development, Mr. Goel, said, “The Delhi government recently increased the entertainment tax from Rs 20 to Rs 40 not realizing that it is a price sensitive market. Neither the consumer nor the broadcaster is ready to take the burden of the increasing cost. Thus, to protect our business model and to remain a consumer friendly company while also complying with all rules and regulations, we thought of coming together on a common platform.”
Dish TV recently transferred its non-core business (including set-top boxes, dish antenna and related services) to its wholly owned subsidiary viz. Dish Infra Services Private Limited (formerly known as Xingmedia Distribution Private Limited) on April 1, 2015 on a going concern basis. The company today reported its maiden consolidated quarterly numbers.