cmn_Dish-TV

Direct-to-home (DTH) operator Dish TV has added 0.402 million net subscribers for the quarter ended June 2016 (Q1 FY17), a drop from the half a million subscribers it added last quarter. With this, Dish TV’s total number of subscribers stands at 14.9 million. Churn was at 0.7% per month for the company, and it reported an ARPU of Rs 174, the same as last quarter.

In an interesting development, DishTV has recently selected Wyplay’s Frog as the Middleware for its next generation Set-Top-Boxes. Wyplay is an HTML5 browser based system and incorporates all features required for traditional linear broadcast TV consumption, on-demand content, and applications distributed over the internet.

About its results, the company said, “Healthy subscriber additions led to a 12.3% Y-o-Y increase in subscription revenues (on a like-to-like basis). EBITDA margin bounced to 34.0% from 32.0% in the corresponding quarter last fiscal. Net Profit for the quarter was Rs. 409 million leading to FCF generation of Rs. 627 million. Churn for the quarter at 0.7% p.m. remained well within manageable limits.”

Financials

  • Operating revenues of Rs 778.6 crore, up 5.7% year on year.
  • Net profit of Rs 40.9 crore.
  • Subscription revenues of Rs 728.2 crore, up 6.7 year on year.
  • EBITDA of Rs 264.6 crore, up 12.2% year on year, and the EBITDA margin moved up to 34% from 32% during the same period.

The company expects that normal monsoon conditions in India and the notification of the 7th Pay Commission will help boost demand and spending. From a regulatory point of view, its Chairman and Managing Director, Jawahar Goel, said:

  • On Digitization: “While the Delhi High Court is likely to take up hearing of the digitization Phase III matter in August this year, cable operators may have no option than to digitize remaining analog cable networks as the Central Government gears up to auction 700 MHz spectrum to telecom operators. The government is also contemplating utilization of 200 MHz airwaves for mobile telephony.”
  • On DTH License fee: “An industry favourable resolution of the DTH license fee matter should go a long way in ensuring non-discrimination amongst various distribution platforms in the country. We are also hopeful of a just and logical outcome of the currently debated TRAI consultation paper on Interconnection Framework for Broadcasting TV Services Distributed through Addressable Systems.”