Videocon d2h eyes EBITDA of Rs 820–860 cr in FY16 amid ARPU and subscriber growth | DTH Forum with Fastest DTH Updates

Videocon d2h eyes EBITDA of Rs 820–860 cr in FY16 amid ARPU and subscriber growth
MUMBAI: Videocon d2h, the Nasdaq-
listed Indian direct-to-home (DTH)
company, is expected to end the
current financial year with an
operating profit or EBITDA (earnings
before interest, tax and depreciation
and amortisation) of Rs 820–860
crore (Rs 8.2–8.6 billion).
This indicates an increase of
approximately 35–40 per cent over
FY15 when the EBITDA (adjusted)
stood at Rs 610 crore (Rs 6.10
Incidentally, Videocon d2h has
maintained its initial guidance of 25–
30 per cent in the first half (H1) of
FY16, and a higher growth (40–45 per
cent) in the second half (H2) of fiscal
In the first quarter of FY16, the
company had posted adjusted EBITDA
of Rs 190.27 crore (Rs 1.90 billion).
Videocon d2h executive chairman
Saurabh Dhoot commented, “We are
pleased to provide strong EBITDA
growth guidance for fiscal year
Dhoot added that this is driven by
‘strong subscriber growth
momentum’, ‘improving ARPU’ and
further benefit of operating
Earlier, the DTH company expected to
add 1.3–1.4 million gross subscribers
in the first half of FY16, similar to
what it had mopped up in the year-ago
period. Subscriber additions in the
second half of the fiscal would be
stronger, with 31 December 2015 as
the deadline for Phase III
digitisation, the company maintained.
In FY15, Videocon d2h had added 1.75
million net subscribers, taking the
total to 10.18 million. Its gross
subscriber base stood at 13.09 million.
Meanwhile, in the first quarter itself,
the company added 0.5 million net
subscribers, thus taking the total
subscriber base (net) to 10.6 million.
Its gross subscriber base for the
period stood at 13.7 million.
Videocon d2h had earlier stated that
the ARPU in FY 2016 was expected to
be Rs 215 compared to the year-ago
period’s Rs 196. ARPUs for the fourth
quarter of FY15 and Q1FY16 were Rs
202 and Rs 205 respectively.
The company recently increased the
price of its monthly subscription packs
across India in the range of Rs 12–23
per month.
Operating leverage
With the bulk of content contracts
renewed in the second half of FY15
for three years (on average), the
company is not expecting a major
increase in the content cost.
In FY15, the content cost was 36.2
per cent of the revenue. In Q1 FY16,
it was 37 per cent of the revenue.
Dhoot added, “We remain excited
about our long-term subscriber
growth prospects as a result of the
government-mandated move to
digitalisation. We have positioned
ourselves to take advantage of the
100 million subscriber homes
opportunity for the industry over the
next four to five years.”

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