NOIDA, India; May 23, 2016 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV) today reported fourth quarter fiscal 2016 consolidated subscription revenues of Rs. 7,410 million, up 12.6% Y-o-Y and operating revenues of Rs. 7,993 million, up 9.5% Y-o-Y. EBITDA for the quarter stood at Rs. 2,608 million compared to Rs. 2,209 million in the corresponding quarter last fiscal.
EBITDA margin recorded at 32.6% compared to 30.3%. Profit after tax for the quarter was Rs. 4,828 million as against Rs. 349 million in the corresponding quarter last fiscal.
Fiscal 2016 consolidated revenues stood at Rs. 30,599 million recording 13.8% growth over the previous fiscal. EBITDA of Rs. 10,249 million was up 39.8% Y-o-Y. Net profit for the year was Rs. 6,924 million as against Rs. 31 million in fiscal 2015.
4Q FY16 and FY16 numbers are not comparable on a Y-o-Y basis due to the impact of increase in Service Tax to 14.5%, from 12.36%, with effect from August 2015.
The Board of Directors in its meeting held today, has approved and taken on record the audited results for the quarter & year ended on March 31, 2016.
- 508 thousand net subscriber additions during the quarter. Closing net subscriber base of 14.5 million
- Subscription revenues of Rs. 7,410 million; up 12.6% Y-o-Y
- Average Revenue Per User (ARPU) of Rs. 174 vs. Rs. 172 in 3Q FY16
- EBITDA of Rs. 2,608 million; up 18.1% Y-o-Y
- Profit After Tax (PAT) of Rs. 4,828 million, including deferred tax expense of Rs. (4,360) million
- ARPU of Rs. 174 compared to Rs. 168 in FY15
- Subscription revenues of Rs. 28,275 million; up 15.4% Y-o-Y
- Operating revenues of Rs. 30,599 million; up 13.8% Y-o-Y
- EBITDA of Rs. 10,249 million; up 39.8% Y-o-Y. EBITDA margin of 33.5% vs. 27.3%
- PAT of Rs. 6,924 million, including deferred tax expense of Rs. (4,360) million
Mr. Jawahar Goel, Chairman & Managing Director, Dish TV, said, "Fiscal 2016 was yet another year that saw global economic uncertainty take centre-stage all throughout. Notwithstanding that, the Indian economy registered good economic growth as the government focused on development through reforms. With the macro economy showing early signs of pick-up and the Met department predicting an 'above normal' monsoon, fiscal 2017 has already started on an optimistic note. So far as the DTH industry is concerned a strong agrarian economy, further supported by government initiatives like 100% village electrification, and prospering urban areas, with 24x7 power supply, shall certainly ensure growth for the industry going forward."
Dish TV had record subscriber additions during the fourth quarter. While a few states remained under the stay granted by respective High Courts, there were others that witnessed a demand surge.
Talking about subscriber additions during the quarter, Mr. Goel, said, "We had a well defined plan in place to target these markets. Our campaign 'Set-Top-Box Matlab Dish TV' had the desired impact while the specially designed sports packs ensured that sports fans didn't go elsewhere during the cricket season. Higher investments behind the brand not only ensured higher brand scores but a stronger brand recall as well. To further strengthen our connect with the customer, we upgraded our existing service infrastructure and enhanced distribution in areas that were not up to the mark. Thus covering newer territories."
Despite significant additions, Dish TV stood true to its philosophy of profitable growth. The company took a price hike across most of its packs in North and South India by around 4-8% with effect from March 22, 2016. That said however, both Dish TV and the DTH sector in total have been reeling under the pressure of an ever increasing Service Tax that they are still not able to pass on to the subscriber.
"As enforcement of Goods and Services Tax (GST) regime gets delayed, multiple taxes like Service Tax and Entertainment Tax will continue to be levied on the DTH sector. Multiplicity of taxes makes it almost impossible to charge them to the subscribers. As a result, price hikes that should have otherwise gone towards increasing the abysmally low ARPUs in the industry are now needed to maintain status quo in an adverse tax environment," said Mr. Goel.
Dish TV has been keenly working on ways to connect with newer audiences in the country and has taken its entire range of products and services to popular online e-commerce platforms like Paytm, Snapdeal, Amazon and Flipkart.
The company also added 8 new channels to its platform during the month of April 2016 taking its total offering size to more than 525 channels and services. To further enhance the digital TV experience for subscribers and build an affordable and fast deployment model for itself, Dish TV 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.
Talking about these developments, Mr. Goel, said, "We had our share of ups and downs during the year but I am glad that we came out as winners at the end of it all. The fast paced dynamism of technological, regulatory and industrial developments kept us productively occupied and brought the best out of us. We are in tune with the environmental shift around us and are motivated to be ahead of the curve as complex changes take place."
Dish TV so far is the only company in the Indian DTH sector to have achieved net profitability. Fiscal 2016 was the second full year of net profit for the company.
Talking about the fourth quarter results, Mr. Goel said, "Healthy subscriber additions and a higher ARPU improved the subscription revenues by 12.6% over the corresponding quarter last fiscal. EBITDA of Rs. 2,608 million recorded an 18.1% jump over the corresponding quarter. Net Profit for the quarter was Rs. 4,828 million as against Rs. 349 million in the fourth quarter last fiscal. The resultant free cash flow was Rs. 1,047 million. Churn for the quarter remained steady at 0.7% per month."