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Videocon d2h’s investment plans
MUMBAI: After his company’s
successful listing in the US, Videocon
Group chairman Venugopal Dhoot has
set an ambitious target for his
direct-to-home (DTH) business
Videocon d2h.
The DTH company is looking to invest
its cash reserves and internal
accruals generated over the next five
years to the tune of $1 billion (Rs
6,500 crore), Dhoot told Business
He also said that the company’s
$325-million offering was well
received by blue-chip funds in the US
resulting in foreign direct investment
into India.
Noting that the market capitalisation
of Videocon d2h was Rs 8,000 crore
(Rs 80 billion), the Videocon Group
boss said that the response from
investors was encouraging with share
price of the DTH firm in NASDAQ going
up by 25 per cent from the initial
public offering (IPO) price.
The company had listed its American
Depositary Shares on NASDAQ on 1
April under the ticker VDTH, in a
business combination transaction with
Silver Eagle Acquisition Corp, wherein
it had raised $325 million.
Videocon d2h expects to end the
current financial year with an
operating profit or EBITDA of Rs
820-860 crore (Rs 8.2-8.6 billion).
This indicates an increase of 35-40
per cent over FY15 when the EBITDA
(adjusted) stood at Rs 610 crore (Rs
6.10 billion).
Meanwhile, Videocon d2h executive
director Saurabh Dhoot has told
Deccan Herald that the company will
become PAT positive “early next year
or late this year (within the next
three quarters)”.
He also said that the DTH company is
likely to double its subscriber base in
the next three to four years
particularly due to opportunities
provided by the Phases III and IV of
digital addressable system (DAS).
The NASDAQ-listed company posted an
operating profit (adjusted EBITDA) of
Rs 190.27 crore (Rs 1.90 billion) for
the quarter ended 30 June 2015 while
narrowing net loss to Rs 24.4 crore
(Rs 244 million).
The company’s revenue swelled to Rs
662.8 crore (Rs 6.63 billion) during
the quarter with subscription revenue
contributing Rs 599.4 crore (Rs 5.99
Expenses during the quarter stood at
Rs 618.1 crore (Rs 6.18 billion) with
content cost comprising 37 per cent of
the total revenue.
The company added 0.46 million net
subscribers (0.61 million gross) during
the quarter, taking its net subscriber
base to 10.64 million as of 30 June.
The gross base stood at 13.7 million.
Average revenue per user (ARPU)
stood at Rs 205.

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