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Dish TV remains free cash positive for 2nd running quarter

Reports lower net loss of Rs 323 million compared with Rs 490 million in the immediately preceding quarter

BestMediaInfo Bureau | Delhi | July 20, 2012

Dish TV India Limited has reported first quarter fiscal 2013 (ended June 30, 2012) standalone unaudited operating revenues of Rs 5,200 million, recording 12.9 per cent growth over the corresponding period last fiscal. EBITDA at Rs 1,556 million registered a significant 38.7 per cent increase over the corresponding quarter last fiscal. EBITDA margin for the quarter stood at 29.9 per cent. It reported a net loss of Rs 323 million; down from Rs 490 million in the immediately preceding quarter. Subhash Chandra, Chairman, Dish TV, said, “The television distribution industry is on the threshold of a seachange in the way it has operated all these years. Mandatory digitisation, though deferred by four months, raises the bar for quality television viewing while promising to correct the ills associated with analog cable. DTH, which started as a fragment of the distribution industry pie, is now already the preferred medium for watching television. Though the postponement of the digitisation deadline came as a negative surprise, we hope that the October 30 timeline will be adhered to.”

Jawahar Goel, Managing Director, Dish TV, said, “The first quarter witnessed a partial comeback post the sluggishness before that. However, enhanced consumer demand owing to digitization is yet to fully reflect in acquisition numbers. Nevertheless, sensing DTH’s growing popularity over competition, Dish TV recently initiated a price hike at the entry level as well as across standard definition packs.” “While some restrain in customer demand in the short term cannot be ruled out, the net impact going forward is going to be ARPU accretive. Moreover, with digitisation around the corner, subscription revenues are expected to increase as viewers sample better content on their television. The government, at its end, has been sending firm signals to the industry that there would be no further extension of the deadline,” he added. Commenting on the first quarter performance, Goel said, “Dish TV maintained its leadership share while continuing to focus on the quality of subscribers joining the platform. Churn sustained its downward movement, closing at 1 per cent per month, while ARPU strengthened to Rs 156, mainly due to the price hikes taken previously. Efficiencies at the cost front helped enhance operating margins despite normalized lease rentals flattening the top-line growth. Enhanced offer fee, coupled with higher number of subscriber adds sequentially, maintained subscriber acquisition cost largely in line with the previous quarter.” “Net loss of Rs 323 million was adversely impacted by foreign exchange loss of Rs 138 million. On the cash flow front, Dish TV continued to be free cash positive for the second consecutive quarter,” Goel added. The recently launched ‘Dish truHD+,’ a High Definition (HD) box capable of digital recording, remains a key driver of HD subscribers on the platform. Dish TV garnered a 25% incremental share of HD additions during the quarter. This becomes all the more significant considering that unlike most DTH platforms; Dish TV activates only exclusive HD packs for its HD subscribers. ‘Dish truHD+’ lends a huge advantage over other DVR’s in the market by offering unlimited recording capacity, due to its compatibility with any external USB device, which enables subscribers to simply plug and play and build an entire library of their favourite programmes. Dish TV India Limited continues to be the largest DTH Company in India and the whole of Asia Pacific and is one of the largest DTH platforms in the World.

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