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Q2-2016: Dish TV PAT at Rs 87 crore; adds 3.38 lakh subscribers

BENGALURU: This is the third consecutive
quarter that direct to home (DTH)
company Dish TV has reported growth
across important financial and operational parameters including
operating revenues (TIO), profit after
tax (PAT) and subscription numbers.
Last fiscal and quarter (year and
quarter ended 31 March, 2015,
Q4-2015), the Subhash Chandra led
Essel Group’s DTH operator Dish TV
Limited turned the corner with a
consolidated profit after tax (PAT) of
Rs 3.14 crore and Rs 34.94 crore
(margin 4.8 per cent) respectively.
The company followed this up with
even better numbers in the previous
quarter (Q1-2015). Dish TV was the
first among listed DTH companies in
the country in FY-2015 and Q4-2015
to report PAT as opposed to the
operating profits reported by a
segment of the other Goliaths for
whom DTH services is just another
small segment.

(1)100,00,000 = 100 Lakh = 10 million
= 1 crore
(2) With effect from April 1, 2015,
Dish TV says that it has started
netting-off certain collection fees
paid to its trade partners from its
topline. This has resulted in the
company’s topline getting shrunk by
around four per cent, with a similar
number being decreased from the
middle line. The values for the prior
comparative periods have also been
recast to reflect the same.
(3) Dish TV recently transferred its
non-core business (including set-top
boxes, dish antenna and related
services) to its wholly owned
subsidiary Dish Infra Services Private
Limited (formerly known as Xingmedia
Distribution Private Limited) on 1
April, 2015 on a going concern basis.

For the current quarter ended 30
September, 2015 (Q2-2015), Dish TV
has reported Operating revenue of Rs
752.42 crore, hence registering a
15.8 per cent YoY growth as compared
to Q2-2015’s number of Rs 649.90
crore and a 2.1 per cent QoQ growth
as compared to Rs 736.68 crore.
The company reported PAT of Rs 86.96
crore (11.6 per cent margin) for the
current quarter as compared to a loss
of Rs 14.2 crore in the corresponding
year ago quarter and a whopping 60.4
per cent growth in profit as compared
to the Rs 54.21 crore (7.4 per cent
margin) in the previous quarter.
The company’s subscriber base in
Q2-2016 increased by 3.38 lakh to
touch 137 lakh as compared to the 133
lakh reported at the end of the
previous quarter (Q1-2016).
Dish TV reported a YoY growth in
Average Revenue Per User (ARPU) to
Rs 171 as compared to the Rs 166,
but a QoQ decline from Rs 173 in the
previous quarter.
Dish TV chairman Subhash Chandra
said, “Dish TV further reinforced its
leadership position during the
quarter. The company, while being at
the forefront of the DTH industry in
India, reached out to television
viewers with innovative products that
promise to enhance their television
viewing experience. Dish TV’s
improving financial strength coupled
with its passion to be ahead of the
curve, should be an advantage to
further enhance its presence in the
vast and still untapped analogue and
free-to-air television markets in the

Let’s look at the other numbers
reported by Dish TV

Dish TV’s total expenditure in
Q2-2016 at Rs 630.44 crore (83.8 per
cent of TIO) declined 1.5 per cent as
compared to the Rs 639.90 crore
(98.5 per cent of TIO) in Q2-2015 and
declined 4.4 per cent as compared to
the Rs 659.69 crore (89.5 per cent of
TIO) in Q1-2016.
A major expense head is content cost
comprising programming, content and
other costs. In Q2-2016 content cost
at Rs 203.54 crore (27.1 per cent of
TIO) was 17.1 per cent more than the
Rs25.27 crore (29.7 per cent of TIO),
but was 14.7 per cent lower than the
Rs 212.01 crore (28.8 per cent of
TIO) in the previous quarter.
Employee Benefit Expense (EBE) in
Q2-2016 at Rs 29.58 crore (3.9 per
cent of TIO) increased 17.1 per cent
as compared to the Rs 25.27 crore
(3.9 per cent of TIO) in Q2-2015, but
declined 14.7 per cent as compared to
the 34.67 crore (4.7 per cent of TIO)
in Q1-2016.
Dish TV’s selling and distribution
expense in Q2-2016 declined 26.1 per
cent to Rs 68.09 crore (nine per cent
of TIO) as compared to the Rs 92.09
crore (14.2 per cent of TIO) in the
corresponding year ago quarter, but
was 2.6 per cent more than the Rs
66.34 crore (nine per cent of TIO) in
the immediate trailing quarter.
Dish TV managing director Jawahar
Goel said, “Dish TV continued to
actively contribute to the ‘Digital
India’ movement by digitising analog
TV homes in DAS phase 3 & 4 markets.
A unique product mix and a strong
brand recall enabled us to add a
healthy 338 thousand net subscribers
in a seasonally weak quarter. Our
regional offering ‘Zing’ is now
available across eight states and
continues to be in high demand in its
target markets.”
Goel added, “Sticking to our guiding
principle of growth with profitability,
we enhanced operational efficiencies
in the business and are pleased with
an all-time high EBITDA margin of
33.9 per cent recorded during the
quarter. We were positive at the net
level as well and had a free cash flow
of Rs. 84.9 crore. As we move ahead,
we stay convinced about our pole
position being related to our value for
money offering and intend to
constantly work on it for long term
sustainable growth.”

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