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Airtel Digital TV Q2ARPU at Rs 224,subscriber addition slows down,EBITDA down2.7%QoQ

MUMBAI: Airtel Digital TV, the direct-
to-home (DTH) arm of telecom
operator Bharti Airtel, has seen a
slowdown in subscriber additions, a
minor dip in operating profit (quarter-
on-quarter) and an increase in churn
in the second quarter of the fiscal.
On the positive side, the DTH business
has remained EBIT-positive for the
third straight quarter and has
touched a new ARPU (average revenue
per user) high of Rs 224 in the
quarter ended 30 September 2015.
In the trailing quarter, ARPU stood at
Rs 222. According to the company,
adjusting for the impact of change in
accounting for indirect taxes, the
underlying ARPU improvement since
corresponding quarter last year is Rs
Meanwhile, the pace of strong
subscriber additions achieved in the
last three quarters slowed down in
Q2. The company added 164,000
subscribers in the quarter ended 30
September 2015, compared to 339,000
in the trailing quarter.
In the corresponding quarter of the
previous fiscal, it had added 151,000
net subscribers.
The company’s total net subscriber
base now stands at 10.576 million.
Rival Videocon d2h had added 200,000
net subscribers in the quarter, taking
its net subscriber base to 10.84
million. In the June quarter, it added
460,000 net subscribers.
One problem area for Airtel Digital TV
could be the increasing churn. The
company’s monthly churn has
increased to 1.3 per cent per month,
from 0.8 per cent in the preceding
quarter. In the year-ago period,
churn was at 1.1 per cent.
Financial performance
EBITDA for the quarter under review
saw a 2.7 per cent drop to Rs 234.3
crore (Rs 2.34 billion), from Rs 240.8
crore (Rs 2.41 billion) in the trailing
In the year-ago period, EBITDA stood
at Rs 152.9 crore (Rs 1.53 billion).
EBIDTA margin, meanwhile, dropped to
33.1 per cent, compared to 35.2 per
cent in the first quarter of the fiscal.
In the year-ago period, it stood at
24.4 per cent.
The company also reported EBIT of Rs
17 crore (Rs 170 million) in the
current quarter, down from Rs 41.5
crore (Rs 415 million) in Q1FY16. In
Q2FY15, EBIT loss stood at Rs 67.7
crore (Rs 677 million).
Revenue saw a modest 3.2 per cent
growth sequentially. The company’s
total revenue was at Rs 706.8 crore
(Rs 7.07 billion), compared to 684.8
crore (Rs 6.85 billion) in the trailing
In the year-ago period, it had made
revenue of Rs 626.3 crore (Rs 6.26
Revenue from digital TV services
accounted for 4 per cent of Bharti
Airtel’s total revenue while EBITDA
contribution stood at 3 per cent.
During the quarter, the company
incurred capital expenditure of Rs
250.1 crore (Rs 2.50 billion). Capex
stood at Rs 211.3 crore (Rs 2.11
billion) in the trailing quarter and at
Rs 225.5 crore (Rs 2.22 billion) in the
year-ago period.
After three quarters of operating
free cash flow, the company has
recorded a cash burn of Rs 15.8 crore
(Rs 158 million) during the second
In the trailing quarter, operating
free cash flow was at Rs 29.5 crore
(Rs 295 million). In the year-ago
period, cash burn was at Rs 72.6 crore
(Rs 726 million).
As of 30 September 2015, the
company’s cumulative investment in
the DTH business touched Rs 5,865.3
crore (Rs 58.65 billion).
Airtel Digital TV offers 475 channels
including 33 HD channels, four
international channels and four
interactive services across 639
districts in India.

Airtel Digital TV Q2 ARPU at Rs 224, subscriber addition slows down, EBITDA down 2.7% QoQ

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  1. first post & title updated

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