DishTV reports operating revenue of Rs 893.2 crore in Q2 FY20
Subscription revenues stood at Rs 792 crore, while advertising income has been reported as Rs 35.5 crore
Dish TV India Limited has reported second-quarter fiscal 2020 consolidated unaudited subscription revenues of Rs 792 crore and operating revenues of Rs 8,93.2 crore. EBITDA for the quarter stood at Rs 520.5 crore.
With programming cost becoming a pass-through item in the New Tariff Regime, subscription and operating revenues for the quarter are not comparable with the corresponding period last year.
The Board of Directors in its meeting has approved and taken on record the unaudited consolidated financial results of Dish TV India Limited and its subsidiaries for the quarter ended September 30, 2019.
The seasonally weak second quarter came bundled with other external challenges this time. Slowing subscriber additions due to a not so robust macro-economic environment, price undercutting by peers, along with heavy rains and flooding in many parts of the country made subscriber acquisitions and retention a challenging task. Dish TV India Limited, however, chose to be resilient making the best of every opportunity coming its way.
The Company, notwithstanding any of these, added 42 thousand subscribers at a net level during the second quarter. Churn, though higher, was on expected lines. Total net subscriber base at the end of the quarter was 23.94 million.
“Setting aside the price undercutting resorted to by some peers in parts of the country, Dish TV India maintained a fine balance between subscriber acquisition and the cost of such acquisition. The Company intentionally avoided adding extremely value-conscious subscribers,” said Anil Dua, Group CEO, Dish TV India Limited.
Financial performance during the quarter was a mixed bag with the EBITDA margin strengthening further while absolute revenues and EBITDA remained on the softer side.
Subscription revenues for the quarter stood at Rs 792 crore. Prolonged monsoon resulted in recharge delays impacting subscription revenues for the quarter. The absence of big-ticket sporting events like the Cricket World Cup also impacted subscription revenues and churn reported during the second quarter, as compared to the previous quarter.
EBITDA for the quarter was Rs 520.5 crore with a strong EBITDA margin of 58.3%. H1 FY20 EBITDA added up to Rs 1056.5 crore. A temporarily dried-up credit line, due to factors beyond the operational performance of the Company, led to an increase in payables. Payable days are expected to be normalized by the end of the fiscal.
Widening the portfolio of offering for its subscribers, Dish TV India launched its much-awaited Smart Connected Devices comprising of the Dish SMRT Hub Android set-top box and Dish SMRT Kit – a voice-enabled dongle with an Amazon Alexa powered remote across 20 carefully selected locations in the country. The Company registered an encouraging response for both the next-generation products and aims to address a 5 million market for the Dish SMRT Kit along with virtually the entire market of broadband-connected houses with the Dish SMRT Hub.
During the quarter, Dish TV’s OTT platform, Watcho, won the ‘Best Content in an Influencer Marketing Campaign’ award for the original comedy show ‘Vote The Hell’, under the best co-created content category. The company intends to carve out a niche for itself in the fast-growing OTT space and is aiming to launch select original web series in the coming months on its OTT platform.
As the government lays out the next round of measures for the economy, shifting focus to fueling demand and consumption, consumer optimism and willingness to spend should soon come back to normal. The onset of festivals at the end of the second quarter gave an early indication of normalcy in the coming months.
“The Company, in a bid to elevate the festive fervour, launched special combos and exciting offers catering to the needs of customers across various segments. The new festive packages have been designed keeping in mind the diverse choice of content across various segments and should further strengthen our base across the country,” added, Dua.
The intent and objective of the New Tariff Order, apart from providing a level playing field for all stakeholders in the television space, was to provide choice to the consumers. Amongst other issues, the New Tariff Order aimed at removing the anomaly related to indirect forcing of unwanted channels to consumers instead of providing a choice of ala-carte. TRAI’s recent floatation of a Consultation Paper on Tariff Related Issues for Broadcasting and Cable Services seems to take stock of the real-world implementation of the Tariff Order and the glaring issues that have continued to exist in the New Regime.
Dish TV India welcomed the Authority for undertaking this exercise and while submitting its response to the Consultation hoped for a linkage between the prices of bouquets and its constituent channels as provided in one of the clauses of the Tariff Order. The Company strongly believes that the Regulation should be implemented in entirety and subscribers should not end up paying for unwanted channels.
Jawahar Goel, CMD, Dish TV India Limited, said, “It is evident that even in the New Regime, there has been a propensity to push low rated channels into bouquets with the objective of increasing the viewership of high rated channels. If the Regulation gets implemented in entirety, there would be better pricing that would ensure wider consumption of channels. Content would be subject to subscriber’s filtration and as a distributor, we would only be procuring popular content that sells.”
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