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Dish TV narrows Q2 FY14 loss to Rs 160 mn

24-October-2013
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Dish TV narrows Q2 FY14 loss to Rs 160 mn

Dish TV India has reported Q2 FY14 standalone operating revenues of Rs 5,926 million, recording a growth of 11 per cent over the corresponding period last fiscal. Subscription revenues stood at Rs 5,370 million, a growth of 13.6 per cent over Q2 FY13. EBITDA returned to growth trajectory with a margin of 25 per cent. Net Loss was down to Rs 160 million, as compared to Rs 304 million in the previous quarter.

The DTH service provider added 164,000 net subscribers in Q2 FY14.

Subhash Chandra, Chairman, Dish TV India remarked, “Uncertainty around global growth continues to affect 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 going steady. That said, however, 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,” he added.

Commenting on the Q2 results, Jawahar Goel, Managing Director, Dish TV said, “We added 164,000 net 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 throw away 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 $90 million in the second half of the current fiscal,” he added.

Goel further said, “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 localised content as well as strengthen carriage revenues. Moreover, with more than 60 per cent of the broadcasting industries’ subscription revenues coming from DTH alone, it is now time that the favourable terms, including carriage fees, extended to the MSOs by the 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 and II.”

Dish TV reported a 13.6 per cent YoY growth in subscription revenues, which along with a reduction in programming and marketing cost contributed to an EBITDA of Rs 1,479 million. A weak rupee impacted the transponder and other programming costs. Despite the forex hit, EBITDA margin for the quarter, jumped back to 25 per cent. Free cash flow generated during the quarter was at Rs 667 million.

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