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Dish TV adds 2,49,000 net subscribers in Q2 to cross 15 mn

MUMBAI: Dish TV added 2,49,000 net subscribers during the fiscal second quarter ended 30 September, thus crossing the landmark figure of 15 million net subscribers.

The DTH operator had a net subscriber base of 15.1 million, as on 30 September.

In the first quarter of the fiscal year, Dish TV had added 4,02,000 net subscribers to end the quarter with a net subscriber base of 14.9 million.

ARPU falls

The DTH operator’s average revenue per user (ARPU) during the quarter fell 6.89% to Rs 162 from Rs 174 in the trailing quarter. However, the Q2 ARPU is post netting off entertainment tax. The ARPU in Q1 would have been Rs 174 without netting of entertainment tax.

Net profit

Net profit for the quarter jumped 71.39% to Rs 70.1 crore from Rs 40.9 crore.

EBITDA remained flat at Rs 264.2 crore compared to Rs 264.6 crore in the previous quarter. EBITDA margin stood at 33.9% as against 34%.

Condensed-Quarterly-Statement-of-Operations-Q2 Fy17

Operating revenue

Operating revenue remained flat at Rs 779.3 crore as against Rs 778.6 crore in the preceding quarter.

Subscription revenues remained stagnant at Rs 728.8 crore compared to Rs 728.2 crore in the trailing quarter.

Expenditure stood at Rs 515.1 crore as against Rs 513.9 crore in the preceding quarter.

Dish TV said that DTH households in the country have crossed more than the 90 million mark at a gross level, with almost 2.8 million subscribers added in the second quarter of fiscal 2017.

The company, however, clarified that the second quarter of the financial year is usually not the best for the DTH industry.

Jawahar_Goel02Talking about the Q2 results, Dish TV CMD Jawahar Goel elaborated, “Healthy subscriber additions led to an 11.9% y-o-y growth in subscription revenue. EBITDA margin was 33.9%. Net Profit for the quarter was Rs 701 million and positive free cash flow was Rs 791 million.”

Goel said that the subscriber additions during the quarter were in line with expectations. “Torrential rains in many parts of the country often force consumers to defer buying a new DTH connection, while the existing ones may delay recharging if the going gets too tough. Both sales and recharge however normalise subsequently if the festival season hits early,” he noted.

With reference to the draft tariff order, interconnection regulation and the quality of service order released by the Telecom Regulatory Authority of India (TRAI), Goel said that the same needs certain corrections. He also applauded the authority for regulating carriage fee.

“While the draft regulations have been formulated with an intention of subscriber welfare, there are certain omissions, optimistic presumptions as well as unanswered questions that would hopefully be addressed once the final orders see the light of day. We appreciate the spirit of transparency and non-discrimination that have been the guiding force behind these draft orders and hope that DTH would soon get the level playing field that it has been seeking. Restrictions placed on carriage fees should go a long way in correcting the industry macro environment,” he elaborated.

Goel also noted that the proposed new licence regime for the DTH sector and the impending nationwide rollout of the Goods and Services Tax (GST) wherein the centre has proposed 12% and 18% as the standard rates for majority of the taxable goods are positive steps for the DTH sector.

HD drive

In line with its strategy to go full throttle in the HD market, Dish TV introduced a new HD scheme that enables customers to opt for an HD box over an SD by paying an additional Rs 120 for the HD hardware. Subscribers can now get started with HD by subscribing to pre-designed HD a la carte packs worth Rs 75 per month, in addition to their preferred SD package.

During the quarter, Dish TV added 32 new educational channels launched by the Ministry of Human Resource Development on its platform. These channels are meant to disseminate high-quality educational content throughout the country and would be available to subscribers on the Dish TV and Zing platforms.