Dish TV posts EBITDA of Rs 148 cr in Q2FY14

Net loss was down to Rs 160 million against Rs 304 million in the previous quarter; 164,000 net subscribers added

BestMediaInfo Bureau | Delhi | October 24, 2013

Dish TV India yesterday reported second quarter (ended on September 30, 2013) fiscal 2014 standalone operating revenues of Rs 5,926 million, recording 11 per cent growth over the corresponding period last fiscal. Subscription revenues of Rs 5,370 million showed a growth of 13.6 per cent over the corresponding quarter last fiscal. EBITDA at Rs 1,479 crore returned to growth trajectory with a margin of 25 per cent. Net loss was down to Rs 160 million against Rs 304 million in the previous quarter. Free cash flow generated during the quarter was at Rs 667 million.

Subhash Chandra, Chairman, Dish TV India, said, “Uncertainty around global growth continues to affect the near term consumption and investment climate. Fortunately in India, the television distribution sector is not only fairly insulated but perhaps the only sector where both investment and consumption have been steady. That said, we strongly believe that irrespective of macroeconomic circumstances, businesses which stick to the basics will be favourably placed when most needed. Dish TV's strategy of self-funded responsible growth, with a focus on profitability is clearly in line with that.”

Jawahar Goel, Managing Director, Dish TV, said, “Dish TV has come a long way since it started operations ten years back. As we buckle up to take the journey to the next level, we continue to apply and integrate all our learnings from past experience. We added 164,000 subscribers during the quarter and maintained our leadership share. Aided by quality additions, Dish TV's churn remained at 0.6 per cent per month, while SAC was flattish. This was despite the fact that being seasonally weak, the quarter witnessed brief periods of desperate attempts to undercut prices by select DTH platforms. Dish TV, aware of the subsequent fallout of throwaway prices, chose not to jump on the bandwagon.”

“With massive opportunity in the form of Phase III and IV of mandatory digitisation ahead, we are confident of acquiring industry leading incremental share while still keeping a tab on the subsidy per box. We continue to be conscious about self-funded growth with minimal debt on the books. In line with that, we repaid debt to the tune of Rs 2,350 million in the first half and would be paying off the rupee equivalent of USD 90 million in the second half of the current fiscal,” Goel added.

“We are on track and look forward to acquiring additional transponder capacity to beef up our existing, industry leading bandwidth in the current fiscal. We intend to leverage the additional capacity to distribute localized content as well as strengthen carriage revenues. Moreover, with more than 60 per cent of the broadcasting industry's subscription revenues coming from DTH alone, it is now time the favourable terms including carriage fees extended to the MSOs by broadcasters be either revisited or offered to DTH platforms as well. This becomes all the more imperative considering that, in a digital environment, cable MSOs are now almost there in terms of package-wise billing in select 2-3 cities of Phase I & II,” said Goel.

Talking about Dish TV's overseas ventures, Goel informed, “Work on Dish TV Lanka (Pvt) Limited, the company's subsidiary, is progressing as per plan and it is our endeavour to share positive news on it in the forthcoming months.”

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