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Dish TV posts net profit of Rs 86.96 crore in Q2 FY16

The DTH service provider continued to build on its profit from Q1 FY16. All-time high EBITDA margin of 33.9 per cent recorded during Q2 FY16

BestMediaInfo Bureau | Mumbai | October 28, 2015

Dish-TV-logo

Dish TV India, the direct-to-home service provider from Zee Network Enterprise, has posted a net profit after tax of Rs 86.96 crore in the second quarter ended September 30, 2015, as against the loss of Rs 14.19 crore in the corresponding quarter last fiscal. On a quarter-on-quarter basis, the profit increased by 60.41 per cent from profit after tax of Rs 54.21 crore in Q1 FY16.

EBITDA for Q2 FY16 stood at Rs 255 crore, compared to Rs 161.9 crore in the corresponding quarter last fiscal. EBITDA margin was recorded at 33.9 per cent, compared to 24.9 per cent in Q2 FY15.

Operating income for Q2 FY16 was Rs 752.42 crore, up by 15.77 per cent from the corresponding quarter last fiscal, where the figure stood at Rs 649.9 crore.

Dish TV added 338,000 net subscribers during Q2 FY16. Its total subscriber base now stands at 13.7 million. The company’s subscription revenue grew 16.5 per cent YoY to Rs 692.6 crore during the quarter.

Dish TV had an Average Revenue per User (ARPU) of Rs 171 in Q2 FY16, as against ARPU of Rs 173 in Q1 FY16 and Rs 166 in Q2 FY15.

Profit after tax for H1 FY16 was recorded at Rs 141.17 crore, as against loss of Rs 29.16 crore in the corresponding period last fiscal.

Operating income for the half year ended September 30, 2015 was Rs 1489.1 crore, up by 17.44 per cent from the corresponding period last fiscal, where the figure stood at Rs 1267.94 crore.

With effect from April 2015, the company has reorganised its segments to focus on the core activity of the company. Consequent to internal reorganisation, company has hived off its non-core business to its subsidiary, Dish Infra Services.

Accordingly, in terms of accounting standard 17, the company has reported segment information for (a) Direct-to-home and Teleport service, and (b) Infra Support Service.

The revenue from DTH operations in Q2 FY16 stood at Rs 639.79 crore. Of this, Rs 554.74 crore was from external sales, while Rs 85.05 crore came through inter segment sales.

In Q1 FY16, the external sales figures stood at Rs 511.16 crore, whereas the inter segment sales was nil.

Profit before tax in Q2 FY16 through DTH services was recorded at Rs 148.30 crore, as opposed to Rs 93.64 crore in Q1 FY16.

As for Infra Support Services, the revenue for Q2 FY16 was Rs 242.17 crore (external sales Rs 197 crore; inter segment sales Rs 45.15 crore). In Q1 FY16, the revenue figure stood at Rs 233.25 crore.

Profit before tax for Q2 FY16 from Infra Support business stood at Rs 15.53 crore, as against loss of Rs 16.46 crore in Q1 FY16.

Speaking about Dish TV’s quarterly results, Subhash Chandra, who has just stepped down as Dish TV’s Chairman, remarked, “Dish TV further reinforced its leadership position during the quarter. The company, while being at the forefront of the DTH industry in India, reached out to television viewers with innovative products that promise to enhance their television viewing experience. Dish TV’s improving financial strength, coupled with its passion to be ahead of the curve, should be an advantage to further enhance its presence in the vast and still untapped analog and free-to-air television markets in the country.”

The company during the second quarter launched India’s first push video-on-demand service, DishFlix. The new service enables DTH subscribers to watch advertisement free movies and TV shows at the click of a button. At an incremental monthly subscription of Rs 100, Dish TV subscribers can now flip through an offering of more than 50 movies and shows with an ability to pause, play, fast forward and rewind the content of their choice. Unlike the current trend of using data for downloading and streaming movies from the Internet, DishFlix does not require Internet bandwidth to play movies.

Jawahar Goel Jawahar Goel

Jawahar Goel, who takes charge as the Dish TV Chairman, said, “Dish TV continued to actively contribute to the ‘Digital India’ movement by digitising analog TV homes in DAS Phase 3 and 4 markets. A unique product mix and a strong brand recall enabled us to add a healthy 338,000 net subscribers in a seasonally weak quarter. Our regional offering ‘Zing’ is now available across eight states and continues to be in high demand in its target markets.”

Dish TV added six new HD channels during the quarter, taking the total HD channel count on its platform to 48, the highest in the industry.

Commenting on the second quarter results, Goel said, “Sticking to our guiding principle of growth with profitability, we enhanced operational efficiencies in the business and are pleased with an all-time high EBITDA margin of 33.9 per cent recorded during the quarter. We were positive at the net level as well and had a free cash flow of Rs 849 million. As we move ahead, we stay convinced about our pole position being related to our value for money offering and intend to constantly work on it for long term sustainable growth.”

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