Dish TV makes profit in Q2 FY 13; remains cash positive

Shows robust 14.6 per cent Y-o-Y growth in subscription revenues; EBITDA margin at 29.2 per cent

BestMediaInfo Bureau | Delhi | October 19, 2102

Dish TV India has reported second quarter fiscal 2013 ended on September 30, 2012 unaudited standalone operating revenues of Rs 5,336 million, a 10.1 per cent growth over the corresponding period last fiscal. EBITDA registered a significant 18.3 per cent increase at Rs 1,557 million over the corresponding quarter last fiscal.

Among other highlights of the company's Q2 performance are:

• Dish TV added 477,000 new subscribers in the quarter achieving a total of 13.9 million gross and 10 million net subscribers
• Subscription revenues for the quarter were Rs 4,727 million, recording a growth of 14.6 per cent compared with the corresponding period last fiscal
• Subscriber Acquisition Cost (SAC) recorded at Rs 2,273 against Rs 2,232 in the immediately preceding quarter
• Exceptional gain of Rs 764 million resulted in PAT of Rs 551 million

Subhash Chandra, Chairman, Dish TV, said, “The recent enthusiasm on the policy front is expected to cheer up an otherwise sluggish macro sentiment. The digitisation mandate is another such trigger and is expected to take the Indian Media & Entertainment industry to the next level of growth.”

“In this countdown towards digitiastion, DTH continues to have an upper edge over cable due to its evolved business systems and processes. At the cable front, the evolution of a successful business-to-consumer model remains primary and a key monitorable to ensure value creation,” Chandra added. “Dish TV with its strengthened product line-up and advanced infrastructure capabilities is well placed to leverage the digitisation opportunity to further strengthen its position in the television distribution industry in the country.”

Jawahar Goel, Managing Director, Dish TV, said, “The second quarter took off sluggishly, largely due to the macro headwinds and price hike at the entry level. However, our sound strategy and efficient on-ground execution enabled a pickup in additions post the first month. Our launch of 'Dish+', India's first standard definition recorder, helped us differentiate and attract consumer interest in a crowded market.”

“In terms of digital conversions, despite regular data on steady growth in digital deployment flowing in, on ground implementation remains lukewarm and nowhere close to numbers doing the rounds. However, with the government sending firm signals against extension of the analog sunset date, we continue to target reasonable subscriber uptake going forward,” Goel added.

“In line with our expectation, the price hike initiated in the last quarter flowed through partially to deliver an encouraging ARPU increase. ARPU for the second quarter was recorded at Rs 159 compared to Rs 156 in the preceding quarter,” said Goel.

Commenting on the second quarter performance, Goel said, “Dish TV continued to be free cash flow positive for the third consecutive quarter. Cost line items remained as projected; an expected hike in marketing cost coming in due to additional spends around digitization. Churn remained at 1% per month despite the package price increase last quarter.”

Dish TV recently launched India's first Standard Definition Recorder, 'Dish+', with unlimited recording facility. 'Dish+' comes equipped with a USB slot and is positioned at a highly competitive price of Rs 1,690 compared to non-recorder ready boxes available at Rs 1,590. 'Dish+' has been launched in the 42 cities covered under Phase I and Phase II of digitisation and is placed to emerge as a value for money differentiator over other boxes in the market.

In a first for the television distribution industry, Dish TV recently launched a recharge option through Interbank Mobile Payment Service (IMPS) through which the subscriber can recharge his Dish TV account securely and conveniently through an instant, interbank electronic fund transfer service that can be initiated only through mobile phones.

In another differentiated and subscriber-friendly move, Dish TV announced a special scheme for all new acquisitions in the first phase of digitisation wherein 70 free-to-air channels would be provided to subscribers provided they subscribe to a pay tier twice a year.

Info@BestMediaInfo.com

Info@BestMediaInfo.com