Dish TV posts Q3 net loss of Rs 430 mn; forex loss at Rs 156 mn

MUMBAI: Dish TV has posted a net loss of Rs 430 million for the third quarter of the fiscal as its bottom line got negatively impacted by a foreign exchange loss of Rs 156 million.

In the trailing quarter, the leading direct-to-home (DTH) company had posted a net loss of Rs 486 million.

The subscriber acquisition cost has come down to Rs 2124 compared to Rs 2232 in the trailing quarter.

Dish TV added 740,000 subscribers in the quarter, achieving a total of 12.5 million gross and 9.5 million net subscribers. The company has added 2.04 million subscribers in the first nine months of the fiscal and its target is of three million new customers in FY‘12.

Total operating revenue grew 31.4 per cent to Rs 4.90 billion compared to the year-ago period and 1.7 per cent against the sequential quarter. Subscription revenue accounted for Rs 4.25 billion, up 37.6 per cent Y-o-Y.

Dish TV‘s ARPU (average revenue per user) has been maintained at Rs 152.

Dish TV’s expenses went up marginally (2.7 per cent) during the quarter, which stood at Rs 3.70 billion as against Rs 3.60 billion in the preceding quarter.

Ebitda, however, fell to Rs 1.20 billion, from Rs 1.22 billion in the preceding quarter.

Dish TV chairman Subhash Chandra said, “As the world at large continues to stare at economic uncertainty in the face, India remains cautiously optimistic but vulnerable to the risks associated with a slowing global economy.”

“Despite a challenging macroeconomic environment and resultant price sensitivity, subscriber additions across the DTH industry have been encouraging. With digitalization expected to boost subscriber additions, Dish TV is well-entrenched to further build on its supremacy while also targeting larger uptake of ARPU accretive HD subscribers,” he added.

Dish TV MD Jawahar Goel added, “The festival quarter ending December has traditionally been a bigger contributor in terms of subscriber additions and revenue compared to the other quarters. This year, though the category outperformed on a year-on-year basis in the month of October being ‘Diwali’ time, subscriber additions thereafter witnessed a slowdown. Notwithstanding the fallout in terms of lower additions what is heartening is that Dish TV, followed by much of the industry, was able to initiate and sustain a significant price hike at the entry level. The price hike was taken to offset the unprecedented rupee depreciation in the last few months. Dish TV continued to maintain its lead in incremental share in a six player market.”

On mandatory digitalisation, Goel added, “While on-ground activity in terms of subscriber demand is yet to catch up speed, Dish TV endeavours to retain its market share in an expanding digital universe. We believe that Dish TV with its strong brand equity and field infrastructure is likely to be one of the preferred choices of the potential digital consumer.”

Talking about the third quarter results, Goel said, “A larger base contributed to a flat ARPU in this quarter. However, the recent price hike is likely to filter through and add to the ARPU in the coming quarters.”

“Due to a further 8 per cent depreciation of the rupee against the US dollar in this quarter, there is an additional foreign exchange loss of Rs 156 million. The foremost reason for this loss is significant foreign currency debt which needs to be reported using the closing exchange rate. However, despite a significant portion of the capital equipment being dollar denominated, SAC remained within expectation largely due to the substantial inventory and higher entry price. Bottom line profitability remains realistic but for the notional loss due to foreign exchange fluctuation,” he added.

Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories