DTH players make merry in Q1; MSOs have less to cheer about
Hathway, InCable record operating incomes in the range of 4-5%, while Dish TV & Airtel Digital TV revenues grow by 15-19%
In Q1 of FY2016, MSO players see a not-so-ideal quarter as profits slipped. While carriage revenues accounted for a large part of revenues of the MSOs, it wasn’t enough to provide for strong growth for these MSOs. However, DTH players such as Dish TV and Airtel Digital TV saw their revenues growing in double digits of 15-19% during the quarter. We take a closer look at these results.
MSOs see low operating income
Hathway Cable and Datacom (Hathway) reported a 5% increase in its operating profit to Rs.32.7 crore in the first quarter against Rs.30.98 crore in Q4FY2015. It however saw a large rise of 88% in operating profits from Q1FY2015 which stood at Rs.3.9 crore. The reason for the growth was the high carriage revenue increase of 8%. The carriage revenue accounted for 31.69% of the MSOs total revenue and stood at Rs.83.8 crore during the first quarter from Rs.77.5 crore in Q4FY2015. The total operating income saw a 5.6% increase as it grew to Rs.264.41 crore in Q1FY2016 from Rs.250.21 crore. The company continued to suffer a net loss after tax of Rs.43.91 crore but has managed to reduce from Rs.76.98 crore in the March ending quarter. The net loss however was much higher than the net loss of Rs.92 lakh in Q4FY2015. The reason for the poor result is the decline in subscription revenue of the cable TV business. Hathway’s pay channel cost reduced to Rs 93.32 crore from 107.34 crore in the last quarter.
Hinduja Ventures which has MSO IndusInd Media & Communication Ltd. (IMCL) or InCable saw its total operating income increase to Rs.26.63 crore during Q1FY2016 as against Rs.25.46 crore in the same quarter last year. This is an increase of 4.6% during the quarter. The net profit after tax for the quarter grew by 7.95% from Rs.22.14 crore to Rs.23.90 crore during the same quarter last year. The total expenses also declined to Rs.2.7 crore from Rs.2.9 crore in the first quarter last year. It is still the investments and treasury segment which is making the revenues of the company, while the media and communication segment still saw a loss before tax of Rs.37.2 lakh.
Den Networks saw a dip in the total revenues as it declined by 11.1% to Rs.265.6 crore in Q1FY2016 from Rs.298.8 crore in Q1FY2015. It also declined by 1.7% in comparison to the previous Q4FY2015 quarter which stood at Rs.270.3 crore. The company posted a net loss of Rs.51.89 crore in Q1FY2015. However, in Q1FY2015 it managed to post a net profit of Rs.1.12 crore. The net loss during the first quarter was however lower than the net loss incurred by the company in Q4FY2015 which was to the tune of Rs.62.03 crore. The company saw a decline in revenues of almost 15% from its main cable distribution network business. However, the broadband segment business of the company saw a massive growth in revenues as much as four times since the corresponding quarter last year. In Q1FY2016 the broadband business increased its revenues to Rs.5.21 crore from Rs.1.06 crore in Q1FY2015.
DTH players Dish TV & Airtel Digital TV revenues grow by 15-19%
Dish TV’s Q1FY2016 operating revenues was up 19.2% Y-o-Y to Rs.736.7 crore and subscription revenues was up 20.6% Y-o-Y to Rs.682.8 crore. EBITDA for the quarter stood at Rs.236.8 crore compared to Rs.156.5 crore in the corresponding quarter last fiscal. Profit after Tax (PAT) for the quarter was Rs.54.2 crore compared to a loss of Rs.15 crore in the corresponding quarter last fiscal. The reason for the growth is that it managed to add 390 thousand net subscribers during the quarter and the total subscriber base now stands at 13.3 million at the end of the quarter.
Airtel’s Digital TV services saw revenues grow by 15.8% to Rs.684.8 crore in Q1FY2016 from Rs.591.5 crore in Q1FY2015. It also saw a growth of 7.9% in comparison with Q4FY2015 as it stood at Rs.634.7 crore. The DTH segment of Airtel also for saw a growth in profits before taxes from a large loss during the same quarter last year. During this quarter it saw a profit before tax revenue of Rs.41.5 crore in comparison with a loss of Rs.62.6 crore in Q1FY2015. The growth was also larger in comparison to the last quarter where the profit before tax stood at Rs.8.1 crore.For more updates, be socially connected with us on
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