Press Releases2014

Oct 30, 2014
Dish TV India Limited declares results for the quarter ended September 30, 2014

NOIDA, India; October 29, 2014 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV) today reported second quarter fiscal 2015 standalone subscription and total operating revenues of Rs. 6,168 million, up 12.2% Y-o-Y and Rs. 6,723 million, up 11.9% Y-o-Y respectively. EBITDA for the quarter was Rs. 1,623 million compared to Rs. 1,554 million in the corresponding quarter last fiscal. Net Loss for the quarter was Rs. 151 million.

The Board of Directors in its meeting held today, has approved and taken on record the unaudited standalone results of Dish TV for the quarter ended on September 30, 2014.

Highlights

  • Dish TV added 378,000 Net subscribers during the quarter ended September 30, 2014. Net subscriber base of 12.1 million at the end of the quarter.
  • Subscription revenues of Rs. 6,168 million increased 12.2% on a Y-o-Y basis.
  • EBITDA of Rs. 1,623 million increased 4.4% on a Y-o-Y basis.
  • Free Cash Flow (FCF) of Rs.110 million.

Dr. Subhash Chandra, Chairman, Dish TV India Limited, said, "The Indian economy seems all set to come back on track. With a strong government at the Centre, not only has the GDP growth been better than the last two years but the inflation too seems to be melting down. A general feel good factor linked to hopes of an economic revival contributed to higher sales for the DTH industry. The industry, led by Dish TV, recorded a healthy 38% Y-o-Y growth in gross additions during the second quarter of fiscal 2015."

"Our performance during the second quarter is a reflection of our belief that a financially stable business is best placed to capitalize on any growth opportunity. While we have been growing in the right direction, growth without healthy returns to our shareholders falls below our aspirations. However, we are committed to generate them and by focusing on revenues, expenses and balance sheet quality we are building near term benefits for all our stakeholders," he added.

Mr. Jawahar Goel, Managing Director, Dish TV, said, "Dish TV maintained its leadership position during the second quarter. Buoyed by a healthy growth in HD sales and good traction coming in from sale of the 'Zing' brand, the company further strengthened its position as the fastest growing DTH player in the country."
Despite the push back of digitization, 'Zing' helped propel the sales of the flagship 'Dishtv' brand through a wider reach and top of the mind recall. The newly introduced Sports driven packaging also found instant favor with subscribers, thus enabling Dish TV outgrow the industry growth rate.

"We believe that the digitization push back provides a window of opportunity both for the early movers as well as for those who have not been able to monetize the roll-out. We do hope that the cable industry will ensure full implementation of gross billing, encryption and packaging in Phase 1 & 2 during this extended time-period. For early movers like Dish TV, it's an opportunity to reach out uninterrupted to the masses in Phase 3 & 4 and capture leading market share there," said Mr. Goel.

Multiple taxation remains one of the biggest challenge for the Indian DTH industry. Commenting on the economic advantages of the Goods and Services Tax (GST), Mr. Goel said, "We continue to be optimistic about the potential cost savings and margin expansion resulting from the implementation of GST and look forward to its early enactment."

In view of the Prime Minister's 'Make in India' campaign Dish TV is re-evaluating possibilities for domestic manufacturing of Set-Top-Boxes (STB), "We are hopeful of improvement in the hardware economics of STBs sourced from India and hope that the taxation structure will be suitably amended to benefit local production," he added.

ARPU for the second quarter increased to Rs. 172 from Rs. 170 in the previous quarter. Despite significantly higher activations, churn continued to be at a healthy 0.7% per month. Festival driven, higher selling and distribution expenses resulted in the EBITDA margin being marginally lower at 24.1% compared to 24.5% in the previous quarter. FCF for the quarter was Rs. 110 million.

The 'Dishtv' brand has been growing from strength to strength. In a true reflection of that, The annual Economic Times, Brand Equity survey conducted by Nielson across 7,200 respondents and 12 cities in urban India ranked Dish TV as 13th amongst the top 50 'Most Trusted Service Brands' in India. Dish TV moved up to the 13th position from 21st last year.

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