cmn_Dish-TV

Direct-to-home (DTH) operator Dish TV has added 0.259 million net subscribers during the quarter ended September 2016 (Q2 FY17), a drop from the 0.402 million subscribers it added last quarter. With this, Dish TV’s total number of subscribers stands at 15.1 million. Average Revenue Per User (ARPU) stood at Rs. 162 as against Rs. 161 in 2Q FY16

According to Jawahar Goes, CMD, Dish TV, “Torrential rains in many parts of the country often force consumers to defer buying a new DTH connection while the existing ones may delay recharging if the going gets too tough. Both sales and recharge however normalize subsequently if the festival season hits early. Targeting phase 3 & 4 markets, our subscriber additions during the quarter remained in-line with expectations.”

Interestingly, the company had said last quarter that it expects normal monsoon conditions in India and the notification of the 7th Pay Commission to help boost demand and spending.

About its results, the company said, “EBITDA for the quarter stood at Rs. 2,642 million compared to Rs. 2,550 million in the corresponding quarter last fiscal. EBITDA margin stood at 33.9%. Profit after tax was Rs. 701 million.” The company reported consolidated subscription revenues of Rs. 728.8 crore, up 11.9% Y-o-Y and operating revenues of Rs. 779.3 crore, up 9.6% Y-o-Y.

Financials

  • Operating revenues of Rs 779.3 crore, up 9.6% year on year.
  • Net profit of Rs 70.1 crore.
  • Subscription revenues of Rs 728.8 crore, up 11.9% year on year.
  • EBITDA of Rs 264.2 crore, up 3.6% year on year, and the EBITDA margin stood at 33.9% this quarter.

On regulatory developments: “While the draft Regulations have been formulated with an intention of subscriber welfare, there are certain omissions, optimistic presumptions as well as unanswered questions that would hopefully be addressed once the final orders see the light of the day. We appreciate the spirit of transparency and non-discrimination that have been the guiding force behind these draft orders and hope that DTH would soon get the level playing field that it has been seeking. Restrictions placed on carriage fees should go a long way in correcting the industry macro environment.”