Dish TV posts Rs 25 cr profit on strong revenues

Dish TV India, world’s largest single country direct-to-home (DTH) company, has registered a major turnaround of its business in the April to June quarter of fiscal 2019. 

The company reported profit after tax (PAT) of Rs 25.5 crore on the back of strong subscription and operating revenues. It was also able to raise prices, thereby increasing the average revenue per user (Arpu) to Rs 214 from 201 in the preceding quarter.

Jawahar Goel, chairman and managing director, Dish TV India, said, “Price hikes initiated during the quarter were a result of some pricing power gathered over the months. It is a positive sign and should stand us in good stead in the year ahead. The first quarter often sets the pace for the full year. Our performance in the first quarter gives us the confidence to deliver in line with our expectations going forward.”

Consolidated subscription revenues for the first quarter of fiscal 2019 increased 8.1% quarter on quarter (QoQ) to Rs 1,489.3 crore while operating revenues rose 8% QoQ at Rs 1,655.6 crore. While earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter stood at Rs 556.8 crore, the Ebitda margin rose to 33.6% in the quarter under review.

On March 22, 2018, Videocon D2h Ltd was merged with and into Dish TV India with the appointed date of the merger being October 1, 2017. As a result, financial numbers for the first quarter are not comparable with the corresponding period last year.

According to the company management, while subscriber additions picked up speed during the first quarter the net number of 301,000 additions was positively impacted by a sports heavy programming calendar. 

With integration across functions getting almost complete, the company also witnessed initial cost synergies materialising during the quarter. Backend, IT and infrastructure synergies were the key contributors to a 38.9% growth in Ebitda sequentially, Dish TV said.

“We remain positive on achieving the Rs 510 crore synergies that we have envisaged from the merger for the current fiscal. Part of the estimated synergies are going to be due to a more rational programming cost. Our interactions with our broadcasting partners so far reinforce our belief in the strength of the new Dish TV platform,” said Goel.

Dish TV India sees the Trai regulation to have the potential to minimise discriminatory pricing by ensuring a level playing field between cable and DTH platforms.

SUBSCRIPTION MIGHT

• Consolidated subscription revenues rose 8.1% QoQ to Rs 1489.3 crore while operating revenues rose 8% QoQ at Rs 1655.6 crore
   
• It was also able to raise prices, thereby increasing the average revenue per user (Arpu) to Rs 214 from 201 in the preceding quarter