Dish TV Q1 operating revenue down 16.7% to Rs 608.6 crore
The company noted that inflation-linked cautiousness in viewers remained intact while the changing landscape of the entertainment industry continued to influence subscriber retention and growth
Dish TV India's operating revenues for the quarter ended 30th June have declined 16.7% to Rs 608.6 crore from Rs 731 crore in the corresponding quarter of the previous fiscal.
The DTH firm's subscription revenue has also witnessed a drop of 18.1% to Rs 545.3 crore from Rs 665.9 crore. Additional marketing, promotional fee, and bandwidth charges increased 6.4% to Rs 40.8 crore against Rs 38.3 crore. Advertisement income declined 30.2% to Rs 8.1 crore from Rs 11.5 crore.
Meanwhile, the company's expenditure declined 2.5% to Rs 284.8 crore from Rs 292.2 crore. The cost of goods and services was down 3.8% to Rs 153.6 crore from Rs 159.6 crore.
EBITDA was down by 26.2% to Rs 323.8 crore from Rs 438.8 crore. Net profit too nosedived by 63.7% to Rs 17.8 crore from Rs 49.1 crore.
The company noted that the first quarter of the current fiscal was an extension of the fourth quarter of the previous fiscal as the inflation-linked cautiousness in viewers remained intact while the changing landscape of the entertainment industry continued to influence subscriber retention and growth.
While stating that the growing number of content delivery and viewing options made the industry more dynamic than ever before and recurring capital expenditure remained the single most important factor to sustain growth, Dish TV said it chose the middle path and maintained a moderate pace of capital expenditure while prioritising debt repayment over new acquisitions.
"External factors dominated and impacted the recharge behaviour of DTH subscribers with top-end consumers swapping between DTH and streaming content and bottom-end subscribers alternating between free-to-air and pay DTH thus affecting revenues and net base. However, notwithstanding the proliferation of video viewing platforms, the popularity of DTH as an all-encompassing, user and pocket-friendly option is well maintained in the many emerging alternatives in the market," the company stated.
Dish TV's subscriber acquisitions were higher during the first quarter of the current fiscal as compared to the same quarter last year though, a weak consumer sentiment coupled with a broader shift in industry dynamics neutralised any positive change in the net subscriber base.
Dish TV India Group CEO Anil Dua said, “In the changing industry landscape, Dish TV is committed to exploring and embracing new possibilities that would enable it to offer a more contemporary and bespoke service bouquet. As an entertainment distribution company, we would want to be a one-stop destination for viewers seeking video content and continue working towards that objective.”
"The Indian OTT space has a way to go before it experiences real consolidation, till then the industry is wide open to new content, formats, artists, and ideas. ‘Watcho’, our in-house streaming app is amongst the many new entrants in this space who take pride in their content offering and customer connect. ‘Watcho’ aims to enhance subscriber stickiness and growth by offering differentiated content that would help us enter the next level of the game with elan,” Dua said.
Dish TV India said that it has been through a rough patch on the corporate front but hopes to sail through the current fiscal so as to enable it to plan for the challenges ahead.
Dish TV India Chairman Jawahar Goel said, “The company has been actively pursuing relevant technological developments in the business space and looks forward to aligning with those that will help it achieve its strategic and commercial goals. As an industry, we also continue to seek and hope for a level playing field in the distribution space, by way of uniform application of license fees to either all players or to none of them, as Free DTH, Headend in the Sky (HITS), OTT and cable TV still remain outside the ambit of license fees."
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