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Videocon d2h narrows Q4 net loss, adds 0.59 mn subs

MUMBAI: Videocon d2h, the DTH arm of Videocon Group, narrowed its net loss in the fiscal fourth quarter amid strong subscriber growth and a 5.9% rise in ARPU (average revenue per user).

Net loss stood at Rs 21.2 crore (Rs 212 million) in the quarter ended 31 March 2016 compared to Rs 75.7 crore (Rs 757 million) in the prior-year quarter.

Videocon d2h added 0.59 million net subscribers in the fiscal fourth quarter. With this, the DTH company’s total net subscriber base stands at 11.86 million. Gross subscribers increased by 0.79 million.

Adjusted EBITDA grew to Rs 219.1 crore (Rs 2.19 billion) in Q4 of FY16, up 25% from the prior-year quarter. Adjusted EBITDA margin expanded by 40 basis points year-on-year (YoY) to 28.4%.

Revenue from operations grew 23.4% YoY to Rs 772 crore (Rs 7.72 billion). Subscription and activation revenue stood at Rs 706 crore (Rs 7.06 billion), up 20.9% from the year-ago period.

Content cost accounted for 37.5% of the company’s revenue in Q4 of FY16, as against 38.4% in the prior-year quarter.

Financial Summary Videocon D2H Q4

ARPU increased to Rs 214, up 1.4% from Rs 211 in the preceding quarter. In the year-ago period, ARPU was at Rs 202.

Monthly churn came in at 0.58% compared to 0.73% in the trailing quarter.

Subscriber acquisition cost in the form of hardware subsidies was Rs 1,776 per subscriber during the fourth quarter of FY16.

Full fiscal performance

Videocon d2h’s net loss shrunk to Rs 92.2 crore (Rs 922 million) in the fiscal ended 31 March 2016 compared to Rs 272.7 crore (Rs 2.73 billion) a year ago.

Adjusted EBITDA grew to Rs 801.3 crore (Rs 8.01 billion), up 31.5% from Rs 609.2 crore (Rs 6.09 billion) in FY15.

Adjusted EBITDA margin expanded by 200 basis points to 28.1%.

Revenue from operations grew 22.2% YoY to Rs 2856 crore (Rs 28.56 billion). Subscription and activation revenue grew 26.4% to Rs 2607 crore (Rs 26.07 billion).

Content cost accounted for 37.8% of the company’s revenue in FY16 compared to 36.2% a year ago.

ARPU stood at Rs 207 for the full fiscal, up 5.6% from an average of Rs 196 in FY15.

Videocon d2h added 1.68 million net subscribers in FY16. In the previous fiscal, the DTH company had added 1.74 million net subscribers. The net subscriber base stood at 11.86 million as of 31 March 2016.

The company added 2.65 million gross subscribers in FY16. In the year-ago period, Videocon d2h had collected 2.64 million gross subscribers.

Monthly churn came in at 0.73% compared to 0.80% in FY15.

Saurabh DhootCommenting on the results, Videocon d2h executive chairman Saurabh Dhoot said, “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realisation and operating leverage benefit resulted in 31.5% adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

Videocon d2h had term loans of Rs 2315 crore (Rs 23.15 billion) and total cash and short term investments of Rs 721 crore (Rs 7.21 billion), as of 31 March 2016.

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