BENGALURU: India's largest DTH services provider Dish TV India (Dish TV) reported second quarter fiscal 2014 total income from operations at Rs 592.6 crore which was 11 per cent more than the Rs 533.6 crore for Q2-2013 and 2.5 per cent more than the Rs 578.4 crore for Q1-2014.
When it announced Q1-2014 results, the company had said that it was planning to pare down debt by Rs 750 crore. To that extent, Dish TV has reported along with its Q2-2014 results that it has reduced debt by Rs 235 crore during the half year ended 30 September 2014. Its financial expense for Q2-2014 at Rs 34.5 crore was slightly lower (by 2.5 per cent) than the Rs 35.4 crore in Q1-2014. Its financial expense for Q2-2013 was Rs 31.7 crore.
Let us look at other results for Q2-2014 reported by Dish TV
The company has reported an increased EBIDTA margin of 25 per cent for Q2-2014 at Rs 147.9 crore as compared to Q1-2014 when Dish TV had reported EBIDTA of Rs 121.7 crore (22 per cent margin). Its EBIDTA for Q2-2013 was Rs 155.7 crore (29.2 per cent margin).
The company reported a lower net loss of Rs 16 crore for Q2-2014 as compared to the loss of Rs 30.4 crore for Q1-2014. Exceptional gain at Rs 76.4 crore in Q2-2013 resulted in a PAT of Rs 55.1 crore for Q2-2013.
Dish TV's primary expenses include cost of goods and services, personnel cost, administrative cost, Dish TV’s advertising expense for Q2-2014 at Rs 11.3 crore was almost a third (36.8 per cent) of the Rs 30.7 crore in Q1-2014. Advertising expense in Q2-2013 was almost double at Rs 22.2 crore for Q2-2013.
The company’s selling and distribution expense for Q2-2014 at Rs 62.4 crore was 19.5 per cent higher than the Rs 52.2 crore in Q2-2013 and 5.5 per cent more than the Rs 59.3 crore reported for Q1-2014.
Dish TV reported 1.64 lakh additional subscriptions during Q2-2014 as compared to the 2 lakh new subscribers the company had reported for Q1-2013. Dish TV had said that it had added 4.77 lakh new subscribers in Q2-2013 and had achieved a gross of 1.39 crore and 1 crore net subscribers at the end of Q2-2013.
Its subscriber acquisition cost (SAC) during Q2-2014 at Rs 1,849 per subscriber was 18.7 per cent lower than the Rs 2,273 per subscriber during Q2-2013, but about 1.1 per cent more than the Rs 1,828 SAC per customer for the immediate preceding quarter (Q1-2014).
Subscription revenue for Q2-2014 at Rs 537 crore was higher
by 13.6 per cent as compared to the Rs 477 crore for Q2-2013
and higher by 1.7 per cent as compared to the Rs 528 crore
for Q1-2014. Its ARPU at Rs 165 remained the same for Q2-2014
Dish TV managing director Jawahar Goel said, “We added 164 thousand net subscribers during the quarter and maintained our leadership share. Aided by quality additions, Dish TV’s churn remained at 0.6 per cent per month while SAC was flattish. This was despite the fact that being seasonally weak, the quarter witnessed brief periods of desperate attempts to undercut prices by select DTH platforms. Dish TV, aware of the subsequent fallout of throw away prices, chose not to jump on the bandwagon.”
“With massive opportunity in the form of Phase III and IV of mandatory digitisation ahead, we are confident of acquiring industry leading incremental share while still keeping a tab on the subsidy per box. We continue to be conscious about self-funded growth with minimal debt on the books. In line with that, we repaid debt to the tune of Rs 235 crore in the first half and would be paying off the rupee equivalent of $ 9 crore in the second half of the current fiscal,” he added.
“We are on track and look forward to acquiring additional transponder capacity to beef up our existing, industry leading bandwidth in the current fiscal. We intend to leverage the additional capacity to distribute localised content as well as strengthen carriage revenues. Moreover, with more than 60 per cent of the broadcasting industries subscription revenues coming from DTH alone, it is now time that the favourable terms, including carriage fees, extended to the MSO’s by the broadcasters be either revisited or offered to DTH platforms as well. This becomes all the more imperative considering that, in a digital environment, cable MSO’s are now almost there in terms of package wise billing in select 2-3 cities of Phase I & II,” said Goel further.
Dish TV 2Q FY14 Financials
Dish TV 2Q FY14 Earnings Release