Press Releases2013

May 23, 2013
Dish TV India Limited declares results for the quarter year Ended March 31, 2013

NOIDA, India; May 23, 2013 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV) today reported fourth quarter fiscal 2013 audited standalone operating revenues of Rs.5,554 million, recording 7.6% growth over the corresponding period last fiscal. EBITDA of Rs.1,200 million registered 6.5% increase over the corresponding quarter last fiscal. EBITDA margin for the quarter stood at 21.6%. Net Loss was down to Rs.436 million compared to Rs.490 million in the corresponding quarter last fiscal.

The company today also reported audited results for the financial year ended on March 31, 2013.

The full year fiscal 2013 standalone revenues stood at Rs.21,668 million, with an EBITDA of Rs.5,759 million and EBITDA margin of 26.7%. Net loss for the year was down to Rs.657 million compared to Rs.1,588 million in fiscal 2012.

The Board of Directors in its meeting held today, has approved and taken on record the audited results for the quarter and year ended on March 31, 2013.

Highlights

•    Dish TV added 0.2 million net subscribers in the quarter ended March 31, 2013 achieving a cumulative total of 10.7 million net subscribers at the end of the period.

•    Standalone operating revenues for the fourth quarter stood at Rs.5,554 million, recording a growth of 7.6% as compared to the corresponding period last fiscal.

•    Subscription revenues for the fourth quarter were Rs.5,001 million, recording a growth of 15.3% as compared to the corresponding period last fiscal.

•    Subscriber Acquisition Cost (SAC) at Rs. 1,996 compared to Rs. 2,201 in the immediately preceding quarter.

•    Higher win backs reduced average churn for the quarter to a low of 0.8% per month compared to 1% in the previous quarter.

•    Net loss for the fourth quarter down to Rs.436 million; continued to be influenced by depreciation & write-off policy.

Mr. Subhash Chandra, Chairman, Dish TV India Limited, said, “Global economies continue to be blanketed by an uncertain economic environment. Corporates and consumers alike remain cautious and in a watchful mode. Here in India, early indicators of an easing inflation and a few supportive macro factors point to a stronger consumer sentiment going forward.”

"In the media sector, digitization, though not fully up to speed, holds big potential for the industry. DTH platforms, in particular, look forward to a level playing field contributing to meaningfully higher ARPU's and stickier subscriber base over time. Dish TV's industry leading initiative, to hike acquisition and pack price is likely to be a catalyst to achieve that," he added.
    
Mr. Jawahar Goel, Managing Director, Dish TV, said, "Fiscal 2013 saw most players in the Indian DTH industry evolve to the next level. Under Dish TV's leadership, the industry pulled off a significant increase in the acquisition price over the last several months thereby reducing the effective cash burn per subscriber. While the resultant decline in industry gross additions is marginal, it is expected to be well compensated by quality of subscribers. There was no respite though, from the multiple taxation which the DTH industry is reeling under. Uncertainty on the rollout of Goods & Services Tax (GST) continues to be an overhang on the earnings potential of the industry."
 
"In the absence of an enforceable contract for set-top box recovery, Dish TV looks forward to move to a virtually nil subsidy model over the medium term. With a strong service backup and an increasing focus on value growth rather than headline subscriber numbers, DTH is well-positioned to develop as a premium offering compared to cable," he added.
 
"On the digitization front, the MSO's readiness on encryption, packaging, dunning and effective business processes is taking undue time. With increasing expectations, customers however will gradually align to a technologically progressive and service oriented mass-scale platform, albeit at a premium. Dish TV has experienced strong though early signals of churned subscribers getting back to its platform in select markets in the current quarter," said Mr. Goel.

Commenting on the business performance, Mr. Goel said, "Dish TV's ARPU for the quarter was Rs.157 compared to Rs.160 in the immediately preceding quarter. However, on a like-to-like basis, ARPU for the quarter would have been Rs. 160 considering that revenue is recognized over a 90 day period in the fourth quarter compared to 92 days in the third quarter. Higher entry level price drove the SAC down to Rs.1,996 from Rs. 2,201 in the preceding quarter. A renewed focus on quality additions coupled with higher win backs reduced average churn for the quarter to 0.8% per month compared to 1% before that. On the expenses front, a 5.1% YoY increase in content cost for the fiscal remained well within the guided range of 10-12% hike. Marketing and other related expenses were within budget and lower in the fourth quarter due to previous quarter investments to capitalize on the digitization opportunity."

Dish TV added 5 new HD channels with effect from April, 2013. With this addition, Dish TV offers the highest number of 25 HD channels and 17 HD services on its platform.

Dish TV recently launched India's first Standard Definition Recorder, 'Dish+', with unlimited recording facility. 'Dish+' comes equipped with a USB slot and is positioned at a competitive price compared to non-recorder ready boxes. 'Dish+' was initially launched in the 42 cities covered under Phase I and Phase II of digitization and is now available across India as a value for money differentiator over other boxes in the market.

In a first within the television distribution industry, Dish TV has launched recharge option through Interbank Mobile Payment Service (IMPS) through which the subscriber can recharge his Dish TV account securely and conveniently through an instant, interbank electronic fund transfer service that can be initiated only through mobile phones. Considering the deep penetration of cell phones in the country, money transfer through them is likely to emerge as a popular mode of transacting for daily services in the days ahead.   

Dish TV India Limited continues to be the largest DTH Company in India and the whole of Asia Pacific and is one of the largest DTH platforms in the World.

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