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Videocon d2h expects to add 0.4 mn subs in Q3, EBITDA to grow 34% to Rs 268 cr
MUMBAI: Videocon d2h, the DTH arm of Videocon Group that is set to merge with Dish TV, is expecting its operating profit to touch Rs 268 crore (Rs 2.8 billion) in the fiscal third quarter ended 31 December. This marks a 34% growth in EBITDA over the year-ago period.
In the quarter ended 30 September, adjusted EBITDA grew 37.3% year-on-year (YoY) to Rs 263 crore. Adjusted EBITDA margin came in at 33.8%.
Videocon d2h is expecting to add 400,000 net subscribers in the fiscal third quarter. In the preceding quarter, the company mopped up 230,000 net subscribers as against its guidance of adding 225,000 new subscribers.
Videocon d2h is on course to turn profitable at the net level for the full-fiscal for the first time while adding 2.5 million gross subscribers in the year.
“We continue to maintain overall guidance for FY17, which is to be PAT and free cash flow positive for the year. Also, this comes with an assumed gross subscriber addition of at least 2.5 million in the current fiscal,” Videocon d2h executive chairman Saurabh Dhoot told media analysts.
The company has been PAT positive for the first two quarters of this fiscal. While it posted a maiden net profit of Rs 2.7 crore (Rs 27 million) in the fiscal first quarter ended 30 June 2016, PAT stood at Rs 14.8 crore in the subsequent quarter.
At the gross level, Videocon d2h mopped up 1.19 million subscribers in the first half of FY17. While 0.60 million gross subscribers were added in the first quarter, the company roped in 0.59 new subscribers in the subsequent quarter.
60% of Videocon d2h’s new subscribers are using high-definition set-top boxes (STBs). As a total percentage of its total subscriber base, HD has increased from 5% two years back to 12% now. The DTH player offers add-ons for various genres, making it possible for its subscriber to sample the HD service in a smaller quantity instead of upgrading to the full HD package.
The HD push will be aided by the recent launch of several regional-language channels by broadcasters. Besides, the sale of large-screen LED TV sets is steadily rising.
Videocon d2h reported carriage revenue of Rs 25.8 crore in the fiscal second quarter.
Last month, Videocon d2h announced that it would merge with Dish TV. The enlarged new company, named Dish TV Videocon, will be led by Jawahar Goel as chairman and managing director. The transaction is expected to close in the second half of 2017 after obtaining regulatory clearances.