Dish TV India has reported first quarter FY14 standalone operating revenues of Rs 5,784 million, recording a growth of 11.2 per cent over the corresponding period last fiscal. EBITDA of Rs 1,217 million was marginally higher than the previous quarter. Net loss was down to Rs 304 million, as compared to Rs 323 million in the corresponding quarter last fiscal and Rs 436 million in the previous quarter.
Subscription revenues for the quarter registered a growth of 15.9 per cent YoY at Rs 5,280 million.
Throwing light on the current scenario in the distribution industry, Subhash Chandra, Chairman, Dish TV India said, “In an ever changing world, the Indian media industry is keeping pace. Of late topics varying from television viewership ratings to the cap on advertisement and the limit on foreign direct investment have maintained the spotlight on the media industry. Digitisation, which happens to be the most talked about, has still a lot to achieve even in the digitised towns and cities. Though it is comforting to see the evolution towards a transparent distribution environment, the distribution industry needs to act fast to leverage the opportunity to weed out the long standing inefficiencies in the system.”
“Too much focus on box seeding has diluted the addressability part of the digitisation mandate. In such a scenario, Dish TV’s focus on quality additions is a counter-intuitive move, which has started delivering encouraging results. The first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity,” he added.
Commenting on the Q1 results, Jawahar Goel, Managing Director, Dish TV said, “In line with our expectations, pack price hikes and improved subscriber quality in the recent months resulted in a strengthened ARPU. ARPU for the quarter increased 5.1 per cent to Rs 165 resulting in a 15.9 per cent YoY increase in subscription revenues. The resultant free cash flow of Rs 484 million compares favourably with Rs 220 million in the fourth quarter and Rs 650 million for the whole of fiscal 2013.”
“On the expenses front, higher investment in marketing, brand building and seasonal sports driven content along with the impact of a weak rupee on dollar denominated costs, resulted in a sequentially flat EBITDA margin,” he added.
On his views about the distribution industry, Goel said, “Though long overdue, cable MSOs’ decision to implement package wise billing from August 1 is a welcome step. We appreciate the move and look forward to a successful transition to the new regime.”