Technology

Dish TV slips into net loss, adds 0.83 mn subs in Q3

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2017/06/21/dishtv.jpg?itok=WODdnJet

MUMBAI: Dish TV, India‘s largest direct-to-home (DTH) operator, has again slipped into quarterly net loss and performed below market expectations despite showing remarkable growth in subscriber numbers.

The company posted a net loss of Rs 448.8 million in the fiscal-third quarter, compared to a net profit of Rs 550.90 million in the trailing quarter, as content and other costs surged.

Dish TV‘s operating profit for the three-month period ended 31 December declined 11.5 per cent to Rs 1.38 billion compared to Rs 1.5 billion in the previous quarter. Ebidta margin for the quarter stood at 24.7 per cent.

"The content cost rose partly due to Media Pro which distributes the Star, Zee and Turner group of channels. The selling and distribution expenses also went up," said a media analyst.

Dish TV‘s expenses jumped to Rs 5.9 billion from Rs 5.3 billion as programming/content and other costs rose to Rs 1.63 billion from Rs 1.42 billion in the preceding quarter. Cost of goods and services grew 11.2 per cent to Rs 2.8 billion from Rs 2.5 billion in the preceding quarter, amounting to 51 per cent of gross revenue. Advertising and promotional expenditure rose 6.8 per cent to Rs 237 million from Rs 222 million. Selling and distribution expenses rose 26.6 per cent to Rs 661 million from Rs 522 million.

Operating revenue for the quarter stood at Rs 5.58 billion, recording a growth of 4.5 cent as compared to Rs 5.3 billion in the preceding quarter. Total income for the quarter increased to Rs 5.7 billion from Rs 5.4 billion in the previous quarter.

Subscription revenues for the quarter were Rs 4.9 billion, up from Rs 4.72 billion .

The company’s other income jumped 118.7 per cent to Rs 175 million from Rs 80 million in the previous quarter.

Subscriber additions

Dish TV added 829,000 new subscribers during the third quarter achieving a total of 14.7 million gross and 10.5 million net subscribers at the end of the period. In the previous quarter, the company had added 477,000 subscribers.

"Dish is looking at adding 2.5 million subscribers this fiscal. It continues to have a strong subscriber growth and has added 1.8 million new customers so far in this fiscal," the analyst said.

Subscriber acquisition cost falls

Subscriber Acquisition Cost (SAC) during the quarter declined to Rs 2,201 compared to Rs 2,273 in the preceding quarter. "While the subscriber growth was much higher than the previous quarter, the marketing expense did not go up as much. This led to a fall in SAC," the analyst added.

Dish TV MD Jawahar Goel said, “While the distribution industry remained on tenterhooks preparing for digitization, the third quarter saw the much debated compulsory switch off of analog television signals take place in key metro markets. Although lack of execution in Chennai and Kolkata was a dampener, festival demand coupled with mandatory conversion in Delhi and Mumbai brought the DTH industry back to the 1 million plus monthly run-rate. DTH garnered around 35 per cent share of incremental additions post the sunset date.”

“In line with our expectation, we witnessed significant subscriber uptake around the sunset date of 31st October. Dish TV achieved the largest share of 28 per cent amongst DTH platforms in the digitization territories. ‘Dish+’, India’s first standard definition recorder, played its part in differentiating and attracting consumer interest in a crowded market,” he added.

ARPU improves

The company‘s Average Revenue Per User (Arpu) grew marginally by a rupee to Rs 160 due to a price hike in the third quarter, up from Rs 159 in the previous quarter.

Goel said, “A larger base did create pressure on the average revenue per user which, primarily supported by price hike in the second quarter, increased marginally to Rs 160. In the third quarter, apart from the usual additional spends typically experienced due to the festive season, additionally this year the company’s investments to capitalize on the digitization opportunity are also reflected in higher costs during the quarter. A seasonally higher marketing expense was as per budget. Content cost for the year is expected to be within the guided range of 12 per cent increase over the previous fiscal.”

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, the company said.

Shares of Dish TV fell 4.96 per cent to close Tuesday at 73.7 on the BSE.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/06/Navanit-Samaiyar_0.jpg?itok=fQLjKjss
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/07/Arnab-Goswami.jpg?itok=VUCIzU8A
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/11/STB.jpg?itok=WsiaUBr8
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/09/PFT.jpg?itok=VJugic3c
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/09/JosephSiino.jpg?itok=doyka7Tg
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/06/Brian_Morris-Colin_Smith.jpg?itok=xVBB0KbV
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for Motorsport.tv 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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/06/ChyronHego_0.jpg?itok=qWRkJ4jh
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/03/Arvin%20patel%20tivo.jpg?itok=Ieo7eXfw
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
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/30/cable-wire.jpg?itok=vJM4lI00
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