NOIDA, India; July 28, 2016 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV) today reported first quarter fiscal 2017 consolidated subscription revenues of Rs. 7,282 million and operating revenues of Rs. 7,786 million. EBITDA for the quarter stood at Rs. 2,646 million compared to Rs. 2,357 million in the corresponding quarter last fiscal. EBITDA margin was 34.0%. Profit before tax was Rs. 631 million while Profit after tax for the quarter was Rs. 409 million.
The Board of Directors in its meeting held today, has approved and taken on record the unaudited results for the quarter ended on June 30, 2016.
Global macro remains cloaked in uncertainties. However, with India getting closer to being the world's fastest growing economy in 2016 its attractiveness from a growth standpoint has become even better. The state of the economy is critical for the success of any business.
â€¢Â Â Â 402 thousand net subscriber additions during the quarter. Closing net subscriber base of 14.9 million.
â€¢Â Â Â EBITDA of Rs. 2,646 million; up 12.2% Y-o-Y. EBITDA margin at 34.0%
â€¢Â Â Â Profit After Tax (PAT) of Rs. 409 million
â€¢Â Â Â Subscription revenues of Rs. 7,282 million were up 6.7% Y-o-Y. Effective April 1, 2016, Dish TV has harmonized the accounting of entertainment tax in line with industry practice.Â Prior to such change entertainment tax was part of operating expenditure and is now netted-off against subscription revenues. On a like-to-like basis the growth in subscription revenues is 12.3% Y-o-Y.
â€¢Â Â Â Operating revenues of Rs. 7,786 million were up 5.7% Y-o-Y. On a like-to-like basis the growth in operating revenues is 10.9% Y-o-Y.
â€¢Â Â Â Average Revenue Per User (ARPU) of Rs. 174, on a like-to-like basis.
Mr. Jawahar Goel, Chairman & Managing Director, Dish TV, elaborated, "With the government working on Roads, Railways, Power and other infrastructure and with global energy prices remaining low, the Indian consumer's propensity to consume is definitely on the rise. Add to that, normal monsoon conditions, government's notification of the 7th Pay Commission recommendations and you have all the ingredients needed to boost demand and spending. This is good news for service industries like ours."
Fiscal 2017 started on an optimistic note for the Indian pay DTH industry. While the Delhi High Court is likely to take up hearing of the digitization Phase III matter in August this year, cable operators may have no option than to digitize remaining analog cable networks as the Central Government gears up to auction 700 MHz spectrum to telecom operators. The government is also contemplating utilization of 200 MHz airwaves for mobile telephony.
"Buoyed by digitization, notwithstanding the relative seasonal weakness in 1Q, the industry collectively added around 15% higher subscribers compared to the same quarter last fiscal. Dish TV maintained its lead in incremental subscriber additions during the quarter. Our strengthened distribution in DAS Phase III and IV areas along with the popularity of the Dish TV Insta Care - 4-Hour Service Assurance Campaign were instrumental in helping us maintain an edge over competition. Our regional and mass-market offerings continued to remain crowd-pullers in respective geographies," said, Mr. Goel.
In line with its commitment to give its viewers the best in terms of quality and service, Dish TV recently unveiled an all new High Definition (HD) campaign Ab India Banega HD (India would become High- Definition now) along with the introduction of long duration HD packs to further accelerate the adoption of HD services.
"The consumers growing passion for HD has the potential to trigger yet another round of growth, beyond that being driven by digitization, for the DTH industry. Going forward, we would continue to build on our HD advantage while focusing on its sales across the country," Mr. Goel added.
Dish TV has aligned its ongoing efforts, to create and train an efficient, well trained workforce of DTH technicians, with the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). The PMKVY is a reward-based skills training scheme of the Ministry of Skill Development & Entrepreneurship (MSDE), that has the objective of enabling large number of Indian youth to take up industry-relevant skill training.
Ever since inception, Dish TV has trained more than 200,000 candidates in the installation, repair, sales and service of DTH equipment. Going forward, the company intends to continue to impart DTH skill training for human capital development relevant to the industry and provide employment/entrepreneurship opportunities to a similar number of aspirants in the next few years.
The Goods and Services Tax (GST) Bill is likely to be discussed and passed during the ongoing monsoon session of Parliament.
Expressing optimism on the implications of the tax reform, Mr. Goel, said, "We continue to be optimistic about margin expansion and ease of doing business that should result from the implementation of GST."
Expressing his views on other regulatory overhangs, Mr. Goel, said, "An industry favourable resolution of the DTH license fee matter should go a long way in ensuring non-discrimination amongst various distribution platforms in the country. We are also hopeful of a just and logical outcome of the currently debated TRAI consultation paper on Interconnection Framework for Broadcasting TV Services Distributed through Addressable Systems."
To further enhance the digital TV experience for subscribers and build an affordable and fast deployment model for itself, Dish TV recently selected Wyplay's Frog as the Middleware for its next generation Set-Top-Boxes. Wyplay is an HTML5 browser based system and incorporates all features required for traditional linear broadcast TV consumption, on-demand content and applications distributed over the internet.
Discussing the results, Mr. Goel said, "Healthy subscriber additions led to a 12.3% Y-o-Y increase in subscription revenues (on a like-to-like basis). EBITDA margin bounced to 34.0% from 32.0% in the corresponding quarter last fiscal. Net Profit for the quarter was Rs. 409 million leading to FCF generation of Rs. 627 million. Churn for the quarter at 0.7% p.m. remained well within manageable limits."