Airtel Digital TV Q2 EBITDA falls amid rev growth; net subs addition at 133K

MUMBAI: Bharti Airtel’s direct to home (DTH) arm Airtel Digital TV has seen a 1.24% dip in its operating profit at Rs 396 crore for the quarter ended 30 September compared to Rs 401 crore in the trailing quarter.

EBITDA margin fell to 38.7% as against 40.4% in the previous quarter. The company’s EBIT declined 8.5% to Rs 190.5 crore compared to Rs 208.4 crore.

The DTH operator’s revenue increased by 3.24% at Rs 1024.2 crore as against Rs 992.4 crore.

During the quarter, Airtel Digital TV added 133,000 net subscribers compared to 479,000 in the trailing quarter. The second quarter is traditionally a weak quarter for DTH companies.

The company’s net subscriber base jumped to 14.78 million from 14.65 million a quarter ago. Average revenue per user (ARPU) was up 1.3% to Rs 232 compared to Rs 229.

During the current quarter, the company incurred a capital expenditure of Rs 179.7 crore compared to Rs 180.9 crore. The resultant operating free cash flow during the quarter was at Rs 216.3 crore as against Rs 220.2 crore.

Airtel Digital TV currently offers a total of 682 channels including 78 HD channels, 5 international channels, and 3 interactive services.

Meanwhile, Bharti Airtel has informed that the company had an exceptional gain of Rs 1013.7 crore (net of tax) largely on account of the creation of deferred tax asset in DTH partially offset by charge towards network refarming/up-gradation program during the quarter.