Videocon d2h Q3 net up 84% at Rs 30.9 cr; adds 160,000 net subscribers

MUMBAI: Direct to home (DTH) operator Videocon d2h’s net profit for the quarter ended 31 December zoomed 84% to Rs 30.9 crore compared to Rs 16.8 crore in the trailing quarter.

EBITDA jumped 3.88% to Rs 291.4 crore compared to Rs 280.5 crore quarter ago. EBITDA margin stood at 35% compared to 33.6%. During the quarter, the company generated free cash flows of Rs 126.9 crore compared to Rs 42.8 crore quarter ago period.

Revenue from operations remained flat at Rs 833.7 crore from Rs 834.6 crore. Subscription and activation revenue stood at Rs 763 crore compared to Rs 770.1 crore.

Total expenses decreased 1.23% to Rs 726.5 crore compared to Rs 735.6 crore quarter ago. Content costs as a percentage of revenue were 40.1% compared to 39.7% in the trailing quarter.

The company added 560,000 gross subscribers and 160,000 net subscribers during the quarter. Net subscribers stood at 13.41 million as of 31 December 2017. Monthly churn came in at 1% compared to 0.62% while ARPU stood at Rs 208 compared to Rs 212.

Subscriber acquisition costs in the form of hardware subsidies were Rs 1,714 per subscriber during the quarter compared to Rs 1,747 per subscriber in the previous quarter. Videocon d2h had term loans of Rs 1,868 crore and total cash and short-term investments of Rs 410 crore as of 31 December 2017.

Commenting on the results, Videocon d2h executive chairman Saurabh Dhoot said, “I am pleased to report that we continued to deliver a strong quarterly result with our Adjusted EBITDA being our highest ever quarterly Adjusted EBITDA at INR 2.91 billion (Rs 291 crore). Our Adjusted EBITDA per subscriber continued to improve further and came in at INR 73 per subscriber per month.”

Dhoot said that the business will see an improvement going forward due to lower content availability on Doordarshan’s free DTH platform Freedish and the Indian government’s focus on increasing affordable housing and improving rural income levels in the recent budget.

As reported earlier, Dish TV and Videocon d2h are going ahead with their merger plan by filing relevant intimations/E-forms with the Registrar of Companies in the last week of February.

“During the quarter, the Company received all the necessary approvals relating to its amalgamation with and into Dish TV India. The two companies now intend to file the relevant intimations / E-Forms with the Registrar of Companies, Ministry of Corporate Affairs, Maharashtra, Mumbai in the last week of February 2018, which filing date will become the effective date for the proposed merger. The Company will issue the relevant timelines and other mandatory notices in relation to the merger in due course,” Dhoot stated.

Dish TV India has nominated Amitabh Kumar and Raj Kumar Gupta to the Board of Videocon d2h for the purpose of the seamless integration of the businesses of Videocon d2h into and with Dish TV India and for synchronising the operations of the two companies in order to derive the benefits and objectives of the Scheme of Amalgamation.