This story first appeared in DNA Money edition on Saturday, July 27, 2013.
Dish TV, India’s leading direct-to-home (DTH) service provider, reported an 11.2% on-year increase in standalone operating revenues at Rs 578.4 crore for the first quarter as subscription revenues grew 15.9% to Rs 528 crore and average revenue per user (Arpu) rose 5.1% to Rs 165 a month.
Subhash Chandra, chairman, Dish TV India Ltd, said the company’s focus on quality additions is a counter-intuitive move, which has started delivering encouraging results. “The first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity.”
With 0.2 million subscriber additions at the end of the June quarter, the company’s subscriber addition cost was down from Rs 1,996 to Rs 1,828 on a sequential basis. Earnings before interest, tax, depreciation and amortisation at Rs 121.7 crore was marginally higher than the previous quarter, while Ebitda margin for quarter stood at 21%.
Jawahar Goel, MD, Dish TV, said business performance was in line with expectations and that hike in pack prices and improved subscriber quality in the recent months resulted in a strengthened Arpu.
At Rs 30.4 crore, Dish TV narrowed down losses both year-on-year (Rs 32.3 crore) and sequentially (Rs 43.6 crore).
R C Venkateish, CEO, Dish TV India, pointed out that the business requires continued capital expenditure. “The most important matrix that shows the health of the organisation is the free cash flow and we are focused on getting that matrix in shape. And if you look at the whole of last year we generated Rs 65 crore in FCF and the number is Rs 48.4 crore in the first quarter of the current fiscal itself. And this is without sacrificing any growth numbers as we are growing over 6% quarter-on-quarter,” he said.
On Dish TV’s overseas ventures, Goel said, “Work on Dish TV Lanka (Pvt) Ltd, the company’s subsidiary, is progressing as per plan. Since it is going to be a zero subsidy model, it makes us all the more excited about the expansion.”
Focusing on strengthening the balance sheet, the Dish TV management is looking to retire a significant portion of its outstanding debt. The company, through its internal accruals, will look to repay approximately Rs 750 crore of outstanding debt through the current fiscal.
The analyst community has given a huge thumbs-up to the stock with the majority having a ‘buy’ call.
Dish TV, India’s leading direct-to-home (DTH) service provider, reported an 11.2% on-year increase in standalone operating revenues at Rs 578.4 crore for the first quarter as subscription revenues grew 15.9% to Rs 528 crore and average revenue per user (Arpu) rose 5.1% to Rs 165 a month.
Subhash Chandra, chairman, Dish TV India Ltd, said the company’s focus on quality additions is a counter-intuitive move, which has started delivering encouraging results. “The first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity.”
With 0.2 million subscriber additions at the end of the June quarter, the company’s subscriber addition cost was down from Rs 1,996 to Rs 1,828 on a sequential basis. Earnings before interest, tax, depreciation and amortisation at Rs 121.7 crore was marginally higher than the previous quarter, while Ebitda margin for quarter stood at 21%.
Jawahar Goel, MD, Dish TV, said business performance was in line with expectations and that hike in pack prices and improved subscriber quality in the recent months resulted in a strengthened Arpu.
At Rs 30.4 crore, Dish TV narrowed down losses both year-on-year (Rs 32.3 crore) and sequentially (Rs 43.6 crore).
R C Venkateish, CEO, Dish TV India, pointed out that the business requires continued capital expenditure. “The most important matrix that shows the health of the organisation is the free cash flow and we are focused on getting that matrix in shape. And if you look at the whole of last year we generated Rs 65 crore in FCF and the number is Rs 48.4 crore in the first quarter of the current fiscal itself. And this is without sacrificing any growth numbers as we are growing over 6% quarter-on-quarter,” he said.
On Dish TV’s overseas ventures, Goel said, “Work on Dish TV Lanka (Pvt) Ltd, the company’s subsidiary, is progressing as per plan. Since it is going to be a zero subsidy model, it makes us all the more excited about the expansion.”
Focusing on strengthening the balance sheet, the Dish TV management is looking to retire a significant portion of its outstanding debt. The company, through its internal accruals, will look to repay approximately Rs 750 crore of outstanding debt through the current fiscal.
The analyst community has given a huge thumbs-up to the stock with the majority having a ‘buy’ call.
No comments:
Post a Comment