Dish TV India, the Direct-to-home (DTH) leader, reported a profit after tax (PAT) of Rs 152.7 crore in the December quarter of fiscal 2019. The company recorded consolidated subscription revenues at Rs 1,412.6 crore and operating revenues at Rs 1,517.4 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) for the third quarter was up 4% on-year at Rs 517.6 crore. Ebitda margins at 34.1% increased 330 basis points (bps) on-year and were almost at a historical high.
The third quarter kept the television industry on its heels with the Trai Tariff Order approaching its erstwhile deadline even as regular business activity picked up speed during the festival period. An early believer of the tariff order, Dish TV India was the first in the industry to partially and voluntarily roll-out the provisions by offering a-la-carte channels to its subscribers at affordable prices.
Leading by example, the company during the quarter leveraged months of pro-active preparedness and research to kick-start processes that were designed to adopt the regulation. However, with the implementation getting pushed back by a month to February 1, subscription recharge was hit by ambiguity and indecisiveness on the part of the subscribers.
Jawahar Goel, chairman and managing director, Dish TV India Ltd, said, “I am glad that all opposition to the Tariff Order has now finally been put to rest. We continue to strongly believe that the regulation should minimise discriminatory pricing by ensuring a level playing field between cable and DTH platforms, and should be beneficial for the entire industry thus leading to higher earnings going forward.”
Dish TV added 1,42,000 net new subscribers during the October to December 2018 quarter.
The Interim Budget 2019, according to Goel, gave an approximate Rs 23,000 crore spending stimulus to the consumption class comprising of small business owners, salaried employees and the middle class by way of tax exemptions. “In addition, increased disposable income in the hands of farmers by way of PM Kissan Samman Nidhi scheme introduced in the budget should be a great boon for consumer sector companies like Dish TV,” he said.
POSITIVE SIGNAL
- Ebitda margins at 34.1% increased 330 basis points (bps) on-year and were almost at a historical high.
- Dish TV added 1,42,000 net new subscribers during the October to December quarter
