Dish TV Q2 net dips 22.6% QoQ; adds 200K net subs

MUMBAI: Dish TV India’s net profit for the quarter ended 30 September has fallen 22.6% to Rs 19.7 crore compared to Rs 25.5 crore in the trailing quarter ended 30 June. EBITDA was down 2.9% to Rs 540.6 crore compared to Rs 556.8 crore a quarter ago.

Operating revenue fell 3.7% to Rs 1594.3 crore as against Rs 1655.4 crore. The company’s expenses saw a 4.1% reduction at Rs 1053.7 crore compared to Rs 1098.9 crore.

The company’s subscription revenue declined 2.4% to Rs 1453.6 crore from Rs 1489.3 crore due to a lack of heavy-duty sporting events, like those in the immediately preceding quarter. The company further stated that sports specific packages and related win-backs often tend to dilute post the event.

Ad revenue was down 35% to Rs 22.6 crore from Rs 34.6 crore.

Quarterly ARPU was down at Rs. 207 compared to Rs 214 in Q1.

Dish TV had 200,000 net subscriber additions during the quarter taking the total net subscriber base to 23.5 million. A bulk of the new subscriber additions happened in the digital addressable system (DAS) Phase 4 markets. In the previous quarter, the DTH operator had 301,000 net subscriber additions.

The company reiterated that the target of 1.3 million net additions for FY19 is well within its reach considering the fact that the festive season falls in the third quarter. It also said that 40% of the subscriber additions happen during the festive season.

It also said that the company being a rural focussed DTH player has tremendous headroom for growth as TV homes in the country are expected to reach 220 million in next three years from 197 million.

While TV penetration in urban markets has reached its peak, the rural markets will fuel the growth of TV households.

Dish TV has entered the dividend paying club with the Board of Directors, post approving the Unaudited financial results of the Company for the quarter, suo motu, declaring the first ever dividend (interim) of Rs. 0.50 per equity share of Rs.1 each on the entire paid issued, subscribed and up equity share capital of the Company.

Without naming Reliance Jio, Dish TV India CMD Jawahar Goel said that the company doesn’t see any threat from IPTV. Jio had recently acquired controlling stakes in Hathway Cable and Datacom and DEN Networks to give a leg-up to its fibre to the home (FTTH) service JioGigaFiber.

“With limited takers for fibre or fixed line broadband, watching television through IPTV is going to be even scarce. Infact, post running an internal analysis, we see less than 1% of our subscriber base to be vulnerable to any kind of IPTV threat in the forseeable future. Our competitive strength in the rural market ring fences our subscriber base almost completely,” Goel said.

“We remain extremely confident about our business and our strong financials give us the courage to compete against anyone in this space. That said, we continue to focus on growth with profitability keeping in mind our objective of maximizing shareholder returns while aggressively investing in the business.”

The company said it has saved millions of dollars in cost synergies by bringing together Sales, Service, Backend and Marketing operations Dish TV and Videocon d2h. Interest costs continued to decline post renegotiation of debt. Debt repayments were as per schedule and the company aims to be debt free in two years.

The company further stated that capex synergies remain on track and set top box cost (STB) negotiations should help achieve the Rs. 1,100 million estimated savings during the fiscal.

While acknowledging the disruption in the market, Dish TV Inida Group CEO Anil Dua said that there is change but a lot of it is exaggeration as well.

“We acknowledge the new choices that the television consumer is getting exposed to but you can’t undermine the unique dynamics of India as a consuming nation. The television consumer likes flexibility but not at the cost of affordability. We still are a nation with 98% of the households having a single TV at home and with more than 79% CRTV’s. Our soon to be launched ‘SMRT Stick’ will be the ideal value for money offering for TV households to convert their CRTV’s into Smart TV’s and experience OTT content,” he contended.

Dish TV’s soon to be launched OTT platform and Connected Box are two of the many initiatives in the pipeline that will position Dish TV at par with some other contemporary offerings that the present day urban television consumer is exploring.

“What would differentiate us from the crowd would be Dish TV’s unique advantage of being able to offer content through both, the traditional and streaming medium thus enabling consumers to keep their TV viewing costs under check. Our confidence on the success of this hybrid offering stems from the fact that linear television offers what no OTT offering can, and not vice-versa. Unlike most competitors, our OTT offering would be a fair mix of original content, linear TV channels and catch-up content,” added Dua.

Dish TV’s Connected Box would empower the new age consumer to watch both, streaming content as well as linear television using DTH technology, at cost effective prices thus offering them excellent value for money.

Dish TV recently appointed Ranveer Singh, a leading film actor with an edgy and youthful attitude, as its new brand ambassador ahead of the festive season. A new campaign, designed to showcase the Dish TV brand in a completely new, bold avatar signaling a new phase in the brand’s life cycle was also launched.

The brand TVC featuring Ranveer Singh, shows him in different situations with DishTV playing on his mind.

The product window talks of its upcoming SMRT Stick for streaming online videos, 5X HD Clarity and unlimited entertainment packs, suggesting how DishTV is adding fun and entertaining moments to the lives of its customers through innovative new products and services.