Sluggish rural consumption, distribution expenses pull down Dish TV’s Q3 numbers


BENGALURU: A recovered but not fully-up-to-speed rural sector and higher selling and distribution expenses during festival time led to Indian direct-to-home (DTH) major Dish TV India Ltd (Dish TV) reporting lower numbers for the quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the corresponding year ago quarter (yoy). Though the company added net 250,000 subscribers during the quarter, lower ARPU brought down Dish TV’s operating revenue and EBITDA by 1 per cent and 15.5 per cent, respectively, yoy. The company reported a net subscriber base of 1.61 crore at the end of Q3 2018. ARPU of Rs 144 in Q3 2018 was the lowest in the current fiscal as against Rs 148 in Q2 2018 and Rs 149 in Q1 2018. Dish TV’s ARPU before demonetisation in November 2016 was Rs 162. The company has reported net loss after taxes of Rs 3.58 crore in Q3 2018 as against profit of Rs 8.39 crore in Q3 2017.

Dish TV CMD Jawahar Goel said, “One year down the line from demonetisation, we have come a long way but somehow the sting in rural consumption is still missing. This was probably well recognised by the government and hence the impetus towards a stronger rural India. Television continues to remain the cheapest and most wholesome means of entertainment for the masses. DTH has presence in places where few other television service providers have reached. Dish TV, amongst such DTH players, has perhaps the deepest rural connect and hopes to benefit from rural India’s increasing propensity to consume everything including television content.”

In its investor release for Q3 2018, Dish TV said that the pending Dish TV–Videocon d2h merger had hit a roadblock as the company was forced to evaluate the impact of certain proposed proceedings, against the Videocon group, on its rights and obligations under the definitive agreements, and consequential effects on the transactions contemplated thereunder.

Dish TV, on 15 December, had secured the Ministry of Information and Broadcasting’s approval to the request made by the company for closing the merger of Videocon d2h with and into Dish TV.

Talking about the merger, Goel said, “We acknowledge our shareholders growing impatience with respect to the merger. We would like to assure them that work around the completion of the deal is going ahead with full steam now and should be completed soon.”

“We are excited about the future of the merged entity and are raring to put the business in overdrive as soon as the merger completes. Though we have lost some time in FY18, we would want to regain our leadership as well as extract the highest possible synergies in the year ahead,” he explained.

A look at the numbers

Dish TV reported a 1 per cent yoy decline in operating revenue for the quarter under review at Rs 740.77 crore as against Rs 747.98 crore. EBITDA for Q3 2018 was 15.5 per cent y-o-y at Rs 200.52 crore (27.1 percent margin) as compared with Rs 237.42 crore (31.7 percent margin).

Total expenditure for Q3 2018 increased by 4.3 per cent y-o-y to Rs 775.12 crore. Employee benefits expense declined 1.5 per cent y-o-y to Rs 35.80 crore. Operating expenses in Q3 2018 increased by 6.2 per cent yoy to Rs 374.08 crore. Other expenses during the quarter under review increased by 8 per cent to Rs 127.84 crore yoy. Finance costs in Q3 2018 reduced by 18.4 per cent yoy to Rs 50.16 crore.

Also Read :

MIB clears path for Dish TV Videocon

Dish TV reports improved operating profits for second quarter

Latest Reads

Videocon d2h re - launches exclusive movie service as Evergreen Classics

Videocon d2h has tied-up with Shemaroo Entertainment to re-launch its d2h Classic Movies service as Evergreen Classics. This VAS Service is available from February 15th on Channel 215 and will be on one month free preview with refreshed line up of classic old Hindi movies till 15th March 2018.

DTH DTH Operator
Despite lower ARPU, Videocon d2h posts higher Q3 profit

BENGALURU: The Saurabh Dhoot-led Indian DTH player Videocon d2h reported profit after tax (PAT) at Rs 30.85 crore for the quarter ended 31 December 2017 (Q3 2018, quarter under review). The company had reported PAT of Rs 16.78 crore for the immediate trailing quarter Q2 2018 and PAT of Rs 21.77...

DTH DTH Operator
Sharlton Menezes joins Tata Sky as head of digital content

Sharlton Menezes has joined DTH operator Tata Sky as head of content for digital. Based in Mumbai, Menezes, who took up the role last month, is reporting to Tata Sky’s chief content officer Arun Unni.

DTH DTH Operator
Dish TV-Videocon d2h deal on course

After a few hiccups, the merger deal between direct-to-home (DTH) operators Dish TV and Videocon d2h is on course again.

DTH DTH Operator
Will clear bills of broadcasters in 4 weeks: Pantel

After acquiring the direct-to-home (DTH) business of Reliance Communications, Pantel Technologies (Pantel) has told the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that it will settle the claims of all the broadcasters within four weeks.

DTH DTH Operator
Airtel to transfer 25% stake in DTH arm to Nettle

According to a BSE filing, Bharti Airtel will transfer its 25 per cent stake in DTH arm Bharti Telemedia to wholly owned subsidiary Nettle Infrastructure Investments.

DTH DTH Operator
Airtel Digital TV revenue, PAT and EBITDA up in Q3 2018

MUMBAI: Bharti Airtel’s DTH arm Airtel Digital TV has seen a 10.4 per cent revenue growth in the quarter ending 31 December 2017 (Q3-2018) compared with Q3 2017 (y-o-y). Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 22 per cent y-o-y in Q3 2018. Airtel DTH’s...

DTH DTH Operator
Sun Direct adds Sun NXT free with DTH subscription

MUMBAI: Sun Direct is finding ways to hold on to its subscriber base amidst the hordes of consolidation and shutdowns happening in the industry. Strengthening its hold in the South, which forms the largest chunk of its territory, it has announced a free membership of its video-on-demand (VOD)...

DTH DTH Operator
Dish TV re-evaluating Videocon d2h merger

MUMBAI: The Dish TV-Videocon d2h merger had reached the final stage with the Ministry of Information and Broadcasting (MIB) giving it the green signal. Then, suddenly on 22 December, Dish TV announced that the union would be delayed beyond 27 December 2017 citing technical reasons. Now those...

DTH DTH Operator

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories