- Twist in Sheena case: Indrani seeks to pin blame on Peter Mukerjea
- Ryan school murder: Court to hear accused bus conductor's bail plea today
- BCCI set to revoke ban on RCA soon
- Only 93 lakh 'green tax' spent by Delhi govt out of crores, RTI reveals
- Reliance Group shares plunge
Videocon d2h turns profitable at net level for first time
MUMBAI: Videocon d2h, the direct-to-home (DTH) arm of Videocon Group, has turned profitable at the net level for the first time. After Dish TV, this is the second Indian DTH company to be PAT positive.
Videocon d2h posted net profit of Rs 2.7 crore (Rs 27 million) in the fiscal first quarter compared to a net loss of Rs 24.4 crore (Rs 244 million) a year ago.
TelevisionPost.com had earlier reported that Videocon d2h has the potential of turning profitable at the net level in the first quarter of FY17.
The Nasdaq-listed company’s adjusted EBITDA for the quarter ended 30 June 2016 stood at Rs 252 crore (Rs 2.52 billion), reporting a growth of 32.4% over the year-ago period. Adjusted EBITDA margin expanded 210 basis points year-on-year to 30.8% during the quarter.
“The first quarter of fiscal 2017 has been a landmark quarter for our company. In this quarter, we have had a positive profit after tax and achieved free cash flow breakeven. This is a great achievement,” said Videocon d2h executive chairman Saurabh Dhoot.
Revenue from operations grew 23.5% to Rs 819 crore (Rs 8.19 billion). Subscription and activation revenue grew 23.9% to Rs 752 crore (Rs 7.52 billion).
Content cost came in at 36.1% of revenue as compared to 37% of revenue a year ago.
Average revenue per user (ARPU) grew by 6.8% year-on-year to Rs 219.
Videocon d2h added 0.60 million gross subscribers and 0.43 million net subscribers during the first quarter of fiscal 2017.
Net subscribers totaled 12.29 million as of 30 June 2016.
Churn came in at 0.49% per month for the quarter as compared to 0.46% during the same quarter last year.
Subscriber acquisition costs in the form of hardware subsidies stood at Rs 1,872 per subscriber.
Videocon d2h’s term loans stood at Rs 2,187 crore (Rs 21.87 billion) and total cash and short term were at Rs 612 crore (Rs 6.12 billion), as of 30 June 2016.
The company repaid term loans amounting to Rs 387 crore (Rs 3.87 billion) in the current fiscal year. With this, the company has reduced total term loans by over Rs 1,300 crore (Rs 13 billion) since its IPO.
“In line with our focus on paying down term loans, the company recently pre-paid further term loans, strengthening our balance sheet further. We have significantly de-leveraged our balance sheet, reducing term loans by around $200 million since our IPO, with over $55 million repaid in the current fiscal year,” said Dhoot.
Added Videocon d2h CEO Anil Khera, “We are happy to report that adjusted EBITDA for the first quarter of fiscal year 2017 grew 32.4% year on year, which is primarily a result of strong subscriber growth, higher revenue realisations and better operating margins. During the quarter, we expanded our retail network in areas that come under India’s Phase III and Phase IV digitalisation programme. We are happy to announce our strategic tie-up with Vodafone to enable recharge using their m-pesa digital wallet and at Vodafone outlets, as it will give our customers an easy and efficient way to recharge their d2h account at their convenience.”