On Q-o-Q basis, for the quarter ended March 2012, operating revenues grew 7% at Rs 524.72 crore. It added 4.15 lakh subscribers taking the subscriber base at 12.9 million (gross) and 9.6 million (net). ARPU was almost flat at Rs 151. Subscriber acquisition cost (SAC) was at Rs 2127. OPM inclined by 299 bps at 27.5% due to fall in programming &content cost along with selling & distribution cost. The net loss stood at Rs 49.02 crore.
On Y-o-Y basis, for the quarter ended March 2012, operating revenues grew 21% at Rs 524.72 crore It added 4.15 lakh subscribers taking the subscriber base at 12.9 million (gross) and 9.6 million (net). The subscription revenues had increased by 19% to Rs 433.8 crore. Other operating revenues includes lease rent of Rs 56 crore, bandwidth revenues of Rs 14 crore, ad income of Rs 7 crore and teleport and trading income of Rs 4 crore. OPM inclined by 666 bps at 27.5% due to fall in programming & content cost along with selling & distribution cost. The net loss of Rs 49.02 crore. The net loss was negatively impacted by foreign exchange loss of Rs 6.5 crore
Standalone Performance
Quarterly Performance (Sequential)
For the quarter ended March 2012, operating revenues grew 7% at Rs 524.72 crore. It added 4.15 lakh subscribers taking the subscriber base at 12.9 million (gross) and 9.6 million (net). ARPU was almost flat at Rs 151. Subscriber acquisition cost (SAC) was at Rs 2127.
OPM inclined by 299 bps at 27.5% due to fall in programming &content cost along with selling & distribution cost. The operating profit was up by 20% to Rs 144.22 crore. As a % of adjusted sales, selling and distribution cost decreased by 160 bps to 13.9% along with programming & other costs by 420 bps at 27.9%.
Other income was down by 50% to Rs 9.41 crore. Interest cost was down 21% at Rs 34.82 crore while depreciation & amortization charge increased 65% at Rs 167.83 crore. The net loss stood at Rs 49.02 crore.
Quarterly Performance (y-o-y)
For the quarter ended March 2012, operating revenues grew 21% at Rs 524.72 crore It added 4.15 lakh subscribers taking the subscriber base at 12.9 million (gross) and 9.6 million (net). The subscription revenues had increased by 19% to Rs 433.8 crore. Other operating revenues includes lease rent of Rs 56 crore, bandwidth revenues of Rs 14 crore, ad income of Rs 7 crore and teleport and trading income of Rs 4 crore.
OPM inclined by 666 bps at 27.5% due to fall in programming & content cost along with selling & distribution cost. The operating profit was up by 60% to Rs 144.22 crore. As a % of adjusted sales, selling and distribution cost decreased by 550 bps to 13.9% while programming & other costs decreased by 190 bps at 27.9%.
Other income was down by 50% to Rs 9.41 crore. Interest cost was down 21% at Rs 34.82 crore while depreciation & amortization charge increased 65% at Rs 167.83 crore. The net loss of Rs 49.02 crore. The net loss was negatively impacted by foreign exchange loss of Rs 6.5 crore.
FY12 Performance
The operating revenues grew 36% at Rs 1957.82 crore. OPM improved 883 bps at 25.5%. The operating profit was up by 109% to Rs 498.36 crore. As a % of adjusted sales, programming & other costs decreased by 490 bps to 31.1% along with selling and distribution cost by 500 bps to 14.8%
Other income was down by 56% to Rs 38.59 crore. Interest cost was up 18% at Rs 177.8 crore and depreciation & amortization charge increased 42% at Rs 518 crore. The resultant loss at PBT and PAT level decreased 16% at Rs 158.85 crore. The net loss was negatively impacted by foreign exchange loss of Rs 51 crore
Other developments
The life of the Consumer Premises Equipment (CPE) for the purposes of depreciation has been estimated by the management as five years. However, in certain cases, the one-time advance contribution towards the CPE in the form of rental is recognized over a period of three years. The Company is in the process of streamlining the above practices.
Upon inter-se transfer of shares between the Promoters, Dish TV India Limited has become a subsidiary of Dhaka Warriors Sports Pvt Ltd. w.e.f 26 December 2011.
Dish TV Singapore Pte. Ltd. was incorporated on October 6, 2011 as a wholly owned subsidiary of the Company under the laws of Singapore to provide DTH related services.
Dish TV Lanka (Private) Limited, a Joint Venture Company, was incorporated on April 25, 2012 under the laws of Sri Lanka. Dish TV India Ltd holds 70% share capital in the JV company with Satnet (Private) Limited, a company duly incorporated in and having a DTH License in Sri Lanka, holding 30% of the share capital. The said JV company shall engage in providing DTH related services in Sri Lanka
The Company had received a demand notice for income-tax and interest thereon aggregating Rs 26.42 crore in relation to an earlier year. The matter pertains to alleged short deduction of tax at source on certain payments and interest thereon for delayed period. The Company has disputed the issue and has filed an appeal against the above said demand with the tax authorities. The Company, supported by a legal view in the matter, is of the view that no provision is necessary till the dispute is finally concluded by the appropriate authorities.
The Company's net-worth as at the end of the financial year is completely eroded by its accumulated losses. However, the management has prepared the financial results assuming that the Company will continue as going concern considering that the Company has adequate resources in the form of operating cash flows and sanctioned credit facilities from lenders to adequately meet its obligations
Management Comments:
Mr Subhash Chandra, Chairman, stated,
The fiscal gone by kept the World on tenterhooks as Global economic powerhouse's feared collapse from worsening economic scenarios. India had its share of hiccups all along.
Mandatory digitization sets the stage for cleaning up and consolidation in the television industry at a time when inefficiencies have negligible scope in businesses and in economies.
It enhances subscription opportunities for the DTH industry. What is more important though, is Digitization's ability to trigger a much needed change in the overall ecosystem of the television distribution space, where key metrics like churn and ARPU will no longer be susceptible to the ills of analog cable. Dish TV remains well-positioned to leverage this catalyst for growth.
Mr Jawahar Goel, Managing Director, said,
TRAI's recent tariff order is an indication of the regulator's intent to go full throttle on the digitization mandate. Though the potential digital customer is still in a state of inertia, expecting last minute deferments, demand for digital boxes is expected to pick up speed closer to the sunset date.
Dish TV is all set for the Phase I opportunity and beyond and endeavors to retain its market share in an expanding digital universe. We believe that with its top of the mind recall and efficient ground infrastructure, Dish TV is likely to be one of the preferred choices of the potential digital consumer.
While managing a trade-off between quality and quantity of new subscribers in the fiscal gone by, the DTH category witnessed a slowdown after a price hike at the entry level. The category added 10.5 million subscribers in fiscal 2012 compared to 13.3 million in the year before that. However, Dish TV witnessed a marked improvement in its key metrics after the price hike was initiated. With quality subscribers coming on board thereafter, Dish TV's monthly churn number in the fourth quarter aligned with its internal benchmark.
In a bid to clear ambiguity around the revenue recognition of lease rentals, we have revised our accounting policy. Lease rental revenues would henceforth be recognized over a five year period and would be in line with depreciation of fixed assets
Shareholding Pattern
The Promoters stake stood at 64.75% for March 2012. The Promoters have pledged 33.45% of the shares as % of total share holding of promoter and promoter group
Valuation
The stock is trading around Rs 60.05 on the bourses.
Dish TV India: Standalone Results
| 1203(03) | 1103(03) | Y-o-Y Var. (%) | 1112(03) | Q-o-Q Var. (%) | 1203(12) | 1103(12) | Y-o-Y Var. (%) |
| Net Sales | 524.72 | 432.95 | 21 | 490.46 | 7 | 1957.82 | 1436.55 | 36 |
| OPM (%) | 27.5 | 20.8 | | 24.5 | | 25.5 | 16.6 | 8.83 |
| OP | 144.22 | 90.17 | 60 | 120.15 | 20 | 498.36 | 238.80 | 109 |
| Other Income | 9.41 | 18.78 | -50 | 7.78 | 21 | 38.59 | 88.03 | -56 |
| PBIDT | 153.63 | 108.95 | 41 | 127.93 | 20 | 536.95 | 326.83 | 64 |
| Interest | 34.82 | 43.98 | -21 | 47.65 | -27 | 177.80 | 151.14 | 18 |
| PBDT | 118.81 | 64.97 | 83 | 80.28 | 48 | 359.15 | 175.69 | 104 |
| Depreciation / Amortization | 167.83 | 102.02 | 65 | 123.24 | 36 | 518.00 | 365.40 | 42 |
| PBT before EO | -49.02 | -37.05 | -32 | -42.96 | -14 | -158.85 | -189.71 | 16 |
| EO | 0.00 | 0.00 | | 0.00 | | 0.00 | 0.00 | |
| PBT after EO | -49.02 | -37.05 | -32 | -42.96 | -14 | -158.85 | -189.71 | 16 |
| Tax | 0.00 | 0.00 | | 0.00 | | 0.00 | 0.00 | |
| PAT | -49.02 | -37.05 | -32 | -42.96 | -14 | -158.85 | -189.71 | 16 |
| EPS * | # | # | | # | | # | # | |
Not Annualised Current equity of Rs 106.4 crore of F V: Re 1
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database |
Dish TV India: Consolidated Results
| 1203(12) | 1103(12) | Y-o-Y Var. (%) |
| Net Sales | 1957.94 | 1436.66 | 36 |
| OPM (%) | 25.3 | 16.6 | 8.76 |
| OP | 496.01 | 238.04 | 108 |
| Other Income | 70.72 | 122.62 | -42 |
| PBIDT | 566.73 | 360.66 | 57 |
| Interest | 177.99 | 153.38 | 16 |
| PBDT | 388.74 | 207.28 | 88 |
| Depreciation / Amortization | 521.85 | 399.55 | 31 |
| PBT before EO | -133.11 | -192.27 | -31 |
| EO | 0.00 | 0.00 | |
| PBT after EO | -133.11 | -192.27 | -31 |
| Tax | 0.00 | 0.00 | |
| PAT | -133.11 | -192.27 | -31 |
| EPS * | # | # | |
Not Annualised Current equity of Rs 106.4 crore of F V: Re 1
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database |