Dish TV India Limited has reported second quarter fiscal 2018 consolidated operating revenues of Rs. 7,486 million and EBITDA of Rs. 2,161 million.                       

Dish TV adopted Ind-AS (Indian Accounting Standards), notified by the Ministry of Corporate Affairs, from 1Q FY18. Consequently, results for the quarter ended September 30, 2016 have been re-stated to comply with Ind-AS to make them comparable.

The Board of Directors in its meeting held has approved and taken on record the unaudited consolidated financial results of Dish TV India Limited for the quarter ended on September 30, 2017.

Second Quarter Performance

Moving further away from the demonetization era, Dish TV saw a recovery in its EBITDA margins during the second quarter as compared to the preceding few quarters. Operational efficiencies along with some revenue expansion resulting from an improved customer sentiment led to a margin expansion of 170 bps. EBITDA margins during the quarter were 28.9 percent as against 27.2 percent in the previous quarter.

Subscription revenues recorded 1.9 percent growth sequentially to close at Rs. 7,049 million. Average revenues per user (ARPU) strengthened to Rs. 149 while churn rate recovered to close at slightly less than 0.8 percent per month.

Subscriber additions at 188 thousand were in line considering the seasonality of the second quarter.

Amalgamation of Videocon D2h into Dish TV

The proposed combination of Dish TV and Videocon d2h would create one of the world’s leading DTH platform.

Jawahar Goel, CMD, Dish TV India Limited, said, “We have been eager to get back to our stakeholders with the news of the successful closure of the merger. With all other approvals in place, the only approval pending is from the Ministry of Information and Broadcasting. We are optimistic about hearing back from the MIB any moment now and hope to close the merger at the earliest thereafter.”

“We remain excited about the next phase of growth that the combined entity, Dish TV Videocon Limited, will go through and are committed to make the combination a mega success. On the synergy front, we stick to our guidance of Rs. 1,800 million for FY18 and Rs. 5,100 million for FY19,” said Goel.

High Definition for All

To further strengthen its high definition (HD) base, Dish TV recently started giving limited period complimentary access to 7 popular HD channels in a scheme called ‘HD for All.’ This limited duration offer has been extended to all Dish TV subscribers who are at an ex-GST price point of Rs.169 per month or above. The scheme is not applicable to South India.

With ‘HD for All,’ Dish TV looks forward to convert aspiring Indian television households to the Dish TV DTH platform. In addition, the Company is also hopeful about converting ambitious standard definition subscribers to high-ARPU HD connections once they experience the five times better picture quality of HD through any of the 7 channels.

Jawahar Goel, said, “HD has always been considered to be an effective differentiator in an industry that otherwise has little differentiation to talk about. The ‘HD for All’ scheme shall expedite the SD to HD conversion for subscribers who had so far not experienced HD quality and hence had never considered upgradation.” 

The Competitive Environment

Competition within the industry remained intense but manageable. Pricing pressure, by way of low ticket pack prices, prevailed. Dish TV followed a similar strategy but remained conscious of the contribution margins from every pack that it introduced in the market.

The division bench of the Madras High Court continues to reserve its judgment in the Tariff Order dispute.

Dish TV however had recently, partly, adopted TRAI’s new Tariff Order and  had started offering all channels, except Sports and select south channels at affordable ala-carte prices of Rs. 8.50 and Rs.17.00 (plus GST) per channel per month for SD and HD respectively.

As subscribers opt for ala-carte channels, data surprisingly shows that their choice of channels on the Dish TV platform are in contrast to BARCs’ weekly ratings.

On the Free DTH front, negotiation between the distribution industry and private broadcasters on segregation of free vs. pay content continued.

Prasar Bharati, in the meanwhile, has gone back to the drawing board on the auction of slots on the DD Free Dish platform. 10 FTA channels so far, due to their inability to pay high carriage fees, have opted out of the platform.

Another 5 channels, out of the 10 coming up for renewal in February, are expected to opt out of the Free Dish platform.

Dish TV continues to keep an active watch on the developments.

The Road Ahead for DTH in India

As India progresses on the path to digitization, large digital service providers like Dish TV see a significant role to be played by them in the process.

Dish TV soon aims to connect ordinary television subscribers with the best in class digital entertainment that is going to be over and above traditional TV. The Company plans to further enhance its significance by doing things that would leverage the strength of its legacy, reach and customer ownership.

Dish TV is enthusiastic about its soon to be launched Hybrid Box and OTT app that will give subscribers access to the latest in the world of television entertainment alongside their DTH subscription. Dish TV looks at this, along with HD services, as the ARPU driver of tomorrow.

Further, government initiatives like Housing for All and electrification of rural areas will help create green-field demand for digital services like DTH. Dish TV gets bulk of its subscribers from non-top, towns and cities in the country.

Condensed Quarterly Statement of Operations

The table below shows the condensed consolidated statement of operations for Dish TV India Limited for the second quarter ended Sept.’17 compared to the quarter ended Sept.’16:

 

Quarter ended

Quarter ended

% Change

Rs. million

Sept. 2017

Sept. 2016

Y-o-Y

Subscription revenues

7,049

7,288

(3.3)

Operating revenues

7,486

7,793

(3.9)

Expenditure

5,325

5,136

3.7

EBITDA

2,161

2,657

  (18.7)

Other income

77

174

(55.7)

Depreciation

1,899

1,683

12.8

Financial expenses

611

574

6.4

Profit / (Loss) before tax and share of (Loss) in joint venture

             (272)

573

-

Tax expense:

     

Current tax

                289

                 183

58.1

Deferred tax

             (383)

               (299)

-

Profit / (Loss) after tax and before share of (Loss) in joint venture

             (179)

690

-

Share of (Loss) in joint venture

(0)

(0)

-

Net Profit/ (Loss) for the period

(179)

690

-

Other comprehensive income:

 

 

 

Items that will not be reclassified to profit or loss

-

-

-

Income tax relating to items that will not be reclassified to   profit or loss

-

-

-

Items that will be reclassified to profit or loss and related income tax

 

 

 

      -    Foreign currency translation reserve

(7)

6

-

Income tax relating to foreign currency translation   reserve

2

(2)

-

Total comprehensive income for the period

(183)

694

-

Net profit / (loss) attributable to :

 

 

 

Owners of the holding Company

(162)

703

-

      -     Non - controlling interests

(17)

(14)

-

Other comprehensive income attributable to :

 

 

 

Owners of the holding Company

(3)

3

-

Non - controlling interests

(2)

1

-

Total comprehensive income attributable to :

 

 

 

Owners of the holding Company

(164)

706

-

Non - controlling interests

(19)

(13)

-

 

Note: 1) Numbers in the table may not add up due to rounding-off.

2) Previous year figures have been regrouped wherever necessary.

Expenditure

Dish TV’s primary expenses include cost of goods and services, personnel cost and other expenses. The table below shows each as a percentage of operating revenue:

 

Quarter ended

% of

Quarter ended

% of

% change

Rs. million

Sept. 2017

Revenue

Sept. 2016

Revenue

Y-o-Y

Cost of goods & services

3,921

52.4

3,678

47.2

6.6

Personnel cost

       366

            4.9

    367

4.7

(0.2)

Other expenses (IncludingS&D exp.)

       1,038

13.9

      1,091

14.0

(4.8)

Total expenses

5,325

71.1

5,136

65.9

3.7

 

Note: 1) Numbers in the table may not add up due to rounding-off.

2) Previous year figures have been regrouped wherever necessary.

Consolidated Balance Sheet

The table below shows the consolidated balance sheet as on September 30, 2017:

 

 

 

 

As on Sept. 30, 2017

Rs. million

 

 

(Unaudited)

Equity and liabilities

 

 

 

Equity

 

 

 

(a) Equity share capital

 

 

1,066

(b) Other equity

 

 

2,728

(c) Non-controlling interest

 

 

(132)

 

 

 

 

Liabilities

 

 

 

(1) Non-current liabilities

 

 

 

(a) Financial liabilities

 

 

 

        (i) Borrowings

 

 

8,365

         (ii) Other financial liabilities

 

 

381

(b) Provisions

 

 

253

(c) Other non-current liabilities

 

 

141

 

 

 

 

(2) Current liabilities

 

 

 

(a) Financial liabilities

 

 

 

        (i) Borrowings

 

 

749

        (ii) Trade payables

 

 

3,603

        (iii) Other financial liabilities

 

 

8,841

(b) Other current liabilities

 

 

3,684

(c) Provisions

 

 

14,535

 

 

 

 

Total Equity & Liabilities

 

 

44,215

 

 

 

 

Assets

 

 

 

(1) Non-current assets

 

 

 

(a) Property, plant & equipment

 

 

20,293

(b) Capital work in progress

 

 

5,119

(c) Intangible assets

 

 

418

(d) Financial assets

 

 

 

        (i) Investments

 

 

1,500

        (ii) Loans

 

 

102

        (iii) Other financial assets

 

 

149

(e) Deferred tax assets (net)

 

 

5,629

(f) Current tax assets (net)

 

 

438

(g) Other non-current assets

 

 

896

 

 

 

 

(2) Current assets

 

 

 

(a) Inventories

 

 

116

(b) Financial assets

 

 

 

        (i) Trade receivables

 

 

4,938

        (ii) Cash and cash equivalents

 

 

675

        (iii) Bank balances other than (iii) above

 

 

1,250

        (iv) Loans

 

 

127

        (v) Other financial assets

 

 

308

(c) Other current assets

 

 

2,256

 

 

 

 

Total assets

 

 

44,215

 

                                                                                                            - Broadcast And Cablesat Bureau