Dish TV narrows FY13 loss to Rs 657 mn; subscription revenues up 15%
Price hikes drive down subscriber acquisition cost to Rs 1,996. Standalone revenues for FY13 stood at Rs 21,668 mn, with an EBITDA of Rs 5,759 mn
Dish TV India has reported fourth quarter FY13 standalone operating revenues of Rs 5,554 million, recording 7.6 per cent growth over the corresponding period last fiscal. EBITDA of Rs 1,200 million registered an increase of 6.5 per cent over the corresponding quarter last fiscal. EBITDA margin for the quarter stood at 21.6 per cent. Net loss was down to Rs 436 million, compared to Rs 490 million in the corresponding quarter last fiscal.
The full year fiscal 2013 standalone revenues stood at Rs 21,668 million, with an EBITDA of Rs 5,759 million and EBITDA margin of 26.7 per cent. Net loss for the year was down to Rs 657 million, compared to Rs 1,588 million in fiscal 2012.
Subhash Chandra, Chairman, Dish TV India remarked, “In the media sector, digitisation, though not fully up to speed, holds big potential for the industry. DTH platforms, in particular, look forward to a level playing field contributing to meaningfully higher ARPUs and stickier subscriber base over time. Dish TV’s industry leading initiative to hike acquisition and pack price is likely to be a catalyst to achieve that.”
Jawahar Goel, Managing Director, Dish TV added here, “Fiscal 2013 saw most players in the Indian DTH industry evolve to the next level. However, there was no respite from the multiple taxation which the DTH industry is reeling under. Uncertainty on the rollout of Goods & Services Tax (GST) continues to be an overhang on the earnings potential of the industry.”
Commenting on the business performance, Goel said, “Dish TV’s ARPU for the quarter was Rs 157 compared to Rs 160 in the immediately preceding quarter. However, on a like-to-like basis, ARPU for the quarter would have been Rs 160, considering that revenue is recognised over a 90-day period in the fourth quarter, compared to 92 days in the third quarter. Higher entry level price drove the subscriber acquisition cost down to Rs 1,996 from Rs 2,201 in the preceding quarter. A renewed focus on quality additions, coupled with higher win backs, reduced average churn for the quarter to 0.8 per cent per month, compared to 1 per cent before that. On the expenses front, a 5.1 per cent YoY increase in content cost for the fiscal remained well within the guided range of 10-12 per cent hike. Marketing and other related expenses were within budget and lower in the fourth quarter due to previous quarter investments to capitalise on the digitisation opportunity.”
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