DishTV LogoDirect to Home television services operator, Dish TV‘s subscriber growth rate seems to be have marginally picked up: it added 0.22 million subscriber additions in the quarter ending December 31, 2013 (Q3-FY14), up from 0.18 million new users in previous quarter, but down from 0.83 million subscribers it added in the same quarter last year. The net subscriber base now stands at 11.2 million. The company reported a net loss of Rs 38.2 crore compared to Rs 44.9 crore in the corresponding quarter last fiscal, but up from Rs 16 crore is reported last quarter.

Highlights

Subscriber Acquisition Cost (SAC) for Q3 was Rs. 1,889, up from Rs 1,849 in Q2, but it has reduced drastically from Rs 2,201 in Q3-FY13.

– Average Revenue Per User: The average revenue per user (ARPU) for Dish TV increased marginally to Rs 166 from Rs 165 in the previous quarter.

– Subscription revenues was Rs. 552.9 crore, a growth of 11.9% as compared to the corresponding quarter last fiscal and up from Rs 537 crore in the last quarter.

– Its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) EBITDA for the quarter was Rs 135.5 crore up from Rs 147.9 crore in the previous quarter. EBITDA margin was at 22.1% down from 25% from previous quarter.

– Churn maintained at 0.6%

Dish TV has rolled out ‘On Request Ala-carte’ (ORA) scheme on its platform this quarter. Jawahar Goel, Managing Director, Dish TV said that an unjustified increase in payment for content can jeopardize the existence of DTH in the country. “With DTH continuing to contribute bulk of the subscription revenue to the broadcasters, it is high time they get started on collecting their share of revenue from close to 5,000 cable companies apart from rationalization of carriage fee payout.”

The company is on track to launch Sri Lankan operation and test signals are planned for February end. On the digitization front, TRAI and the government have already started the process for implementation of DAS in Phase III and IV which the company believes will give it a significant opportunity going forward.

Financials

– Dish TV reported an operating revenue of Rs 612.8 crore, up from 592.6 crore for the previous and up 9.9% from same quarter last year when it posted Rs 557.8 crore.

– Bandwidth revenues are up 83.6% to Rs 18 crore from the corresponding quarter last fiscal.

– A translational loss, due to foreign exchange fluctuation, of Rs. 7 crore and an exchange rate adjustment demand for transponder payments amounting to Rs. 54 million negatively impacted EBITDA of Rs 135.5 crore.

Dish TV paid off debt to the tune of Rs 563.1 crore in the nine months ended December 31, 2013.

Press Release and Financials

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PS: While going through the financials for the last three quarters, we noticed a statement in the notes to account, which read: “As of December 31, 2013 the company’s net worth is eroded by its accumulated losses. However, the management has prepared the financial results assuming that the company will continue as a going concern considering that the company has adequate resources in the form of operating cash flows, sanctioned credit facilities from lenders and bank deposits to adequately meet its obligations.”

As alarming as that sounds, it’s a statement the company has included in the past. We checked the last three quarters, and it was there.