Videocon d2h Limited has announced financial results for the quarter ended September 30, 2016. These results reflect the Company's change in accounting treatment of entertainment tax effective April 1, 2016.
Highlights for the quarter ended September 30, 2016:
• Revenue from operations came in at Rs 7.76 billion. This is up 20.6percent year on year if the Company was to compute its revenue from operations for Q2 FY17 under its former accounting treatment[*].
• Subscription and activation revenue came in at INR 7.11 billion. This is up 21.9percent year on year if the Company was to compute its subscription and activation revenue for Q2 FY17 under its former accounting treatment[*].
• Adjusted EBITDA grew 37.3percent year on year to INR 2.63 billion.
• Adjusted EBITDA margin came in at 33.8percent. This is up 380 basis points year on year if the Company was to compute its revenue from operations for Q2 FY17 under its former accounting treatment[*].
• Gross subscribers and net subscribers increased by 0.59 million and 0.23 million subscribers, respectively, during the quarter; Net subscribers base stood at 12.52 million.
• Free cash flow came in at INR 199 million.
Key metrics Q2 FY17 Gross subscriber additions (million) 0.59 Net subscriber additions (million) 0.23 Adjusted EBITDA (INR million) 2,625 Profit after tax (INR million) 148
Commenting on the results, Executive Chairman of Videocon d2h, Saurabh Dhoot, said "I'm pleased to report a terrific quarter with over 37percent increase in EBITDA year on year, in spite of the previously announced increase in taxes which impacted ARPU. Our quarterly results performance is consistent with our five point strategy to 1) grow subscriber base, 2) enhance subscriber monetization, 3) focus on localization and premium services, 4) lead the market in technological innovation and 5) enhance operational efficiencies and improve margins. These imperatives are driving our success at creating sustainable shareholder value.
"We are excited and fully prepared to seize the significant subscriber growth opportunity ahead of us through our leading distribution, customer service and differentiated content offering, supported by a strong balance sheet.
"We achieved positive profit after tax and turned free cash flow positive during the current fiscal year, which we believe is a great achievement."
Speaking on the business outlook, Anil Khera, CEO of Videocon d2h said "We are extremely excited with the business growth opportunities ahead of the company. We welcome the regulators' initiative to review and draft a tariff order that aims to create complete transparency in carriage and content deals and bring in commercial parity amongst distribution platforms." - Broadcast and CableSat Bureau