Description
DISH TV STRENGTHENS INCREMENTAL MARKET SHARE LEADERSHIP TO 28%;
ADDS 416,000 NET SUBSCRIBERS DURING THE QUARTER
AVERAGE REVENUE PER USER (ARPU)
INCREASES TO RS.177 FROM RS. 172 IN THE PREVIOUS QUARTER
EBITDA MARGIN IMPROVES BY 270 BPS TO REACH 26.8%
NET LOSS FOR THE QUARTER DOWN TO RS. 29 MILLION
DISH TV INDIA LIMITED
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Dish TV India Limited
FC- 9, Sector 16 A, Film City, NOIDA 201301, UP, India
Tel: +91 120 469 8401
CIN: L51909DL1988PLC101836
DISH TV STRENGTHENS INCREMENTAL MARKET SHARE LEADERSHIP TO 28%;
ADDS 416,000 NET SUBSCRIBERS DURING THE QUARTER
AVERAGE REVENUE PER USER (ARPU)
INCREASES TO RS.177 FROM RS. 172 IN THE PREVIOUS QUARTER
EBITDA MARGIN IMPROVES BY 270 BPS TO REACH 26.8%
NET LOSS FOR THE QUARTER DOWN TO RS. 29 MILLION
Highlights
? 416,000 net subscriber additions; total net subscriber base at 12.5 million at the end of
the quarter.
? ARPU at Rs.177
? Subscription revenues of Rs. 6,554 million, up 17.4% Y-o-Y
? EBITDA of Rs. 1,912 million, up 41.1% Y-o-Y
? Free Cash Flow (FCF) of Rs. 298 million
NOIDA, India; January 22, 2015 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV)
today reported third quarter fiscal 2015 standalone subscription and total operating revenues of
Rs. 6,554 million, up 17.4% Y-o-Y and Rs. 7,139 million, up 16.5% Y-o-Y respectively. EBITDA for
the quarter stood at Rs. 1,912 million compared to Rs. 1,355 million in the corresponding quarter
last fiscal. Net Loss for the quarter reduced to Rs. 29 million.
The Board of Directors in its meeting held today, has approved and taken on record the unaudited
standalone results of Dish TV for the quarter ended on December 31, 2014.
Dr. Subhash Chandra, Chairman, Dish TV India Limited, said, “The world economy continues to
keep policy makers around the globe busy. India helped by its monetary policy stance, a stable
government at the Centre and unwinding of the commodities super-cycle is favorably placed to
outrun other emerging markets. An imminent pick-up in investment and demand is expected to
be favorable both for Dish TV as well as the DTH industry.”
“Dish TV recorded marked improvements in its key financials while maintaining market
supremacy during the third quarter of fiscal 2015. Overall, the DTH industry led by Dish TV
recorded a healthy 29% Y-o-Y growth in gross additions compared to the corresponding quarter
last fiscal,” he added.
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 2 of 4
Highlighting Dish TV’s third quarter performance, Mr. Jawahar Goel, Managing Director, Dish TV,
said, “We continued to strengthen our reach in Phase 3 &4 towns much ahead of the government
mandated revised deadline for digitization in those markets. Our bouquet of offerings including
fully loaded sports packs and High Definition (HD) packages helped us fill in the expectation gap
in Phase 1 & 2 households as well. The recently launched ‘Zing’ has been a successful product
and now caters to 8 regional markets with the latest being Tamil Nadu.”
The DTH industry finally seems to be getting a level playing field with broadcaster’s efforts
towards improving declaration from the cable industry. The implementation of Reference
Interconnect Offer (RIO) deals may mark the beginning of a significant upward trend in industry
ARPU’s. Anticipating a brighter 2015, Mr. Goel said, “Though we have been doing everything
possible to boost ARPU’s, the scope of results has been limited due to sticky cable prices. As
MSO’s shell out more for content and increase tax compliance, cable packaging may become a
reality in 2015 thus bringing average revenue per user to respectable levels while creating
headroom for ARPU expansion in DTH.”
The DTH industry entered 2015 with the same uncertainty around taxes that has been haunting
it since its inception. “Though the union budget 2014 was a dampener, we are keeping our fingers
crossed with respect to the budget 2015. All industry stakeholders including Indian Broadcasting
Foundation (IBF), News Broadcasters Association (NBA), Multi System Operators (MSO) and DTH
operators made a joint representation to the Finance Ministry regarding anomalies in the
industry’s tax structure. The representation was received well and we look forward to hearing
the outcome during the budget this year,” said Mr. Goel.
In view of the Government’s ‘Make in India’ campaign Dish TV has been exploring possibilities
for domestic manufacturing of Set-Top-Boxes (STB). “We are closely watching the turn of events
and would take a decision basis the tax regime for local manufacturing that might be modified
by the government in the days ahead. Our proposed subsidiary Dish Infra Services (Private)
Limited will be instrumental in deriving efficiencies from hardware operations,” Mr. Goel said.
Dish TV recorded a quantum jump in its performance during the third quarter compared to the
corresponding period last fiscal. Commenting on the results, Mr. Goel said, “Our subscription
revenues grew 17.4% on a Y-o-Y basis while EBITDA margin expanded 270 basis points to reach
26.8% during the quarter. Net loss for the quarter reduced to Rs. 29 million while churn was
maintained at a comfortable 0.7% per month.”
Condensed statement of operations
The table below shows the condensed statement of operations for Dish TV India Limited for the
third quarter ended December ‘14 compared to the quarter ended September ‘14:
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 3 of 4
Rs. million
Quarter ended Quarter ended % Change
Dec. – 2014 Sept. – 2014 Q -o -Q
Operating revenues 7,139 6,723 6.2
Expenditure 5,227 5,100 2.5
EBITDA 1,912 1,623 17.8
Other income 154 170 (9.4)
Depreciation 1,616 1,519 6.4
Financial expenses 479 425 12.7
Profit / (Loss) before tax (29) (151) -
Tax expense/(write back) - - -
Net Profit / (Loss) for the period (29) (151) -
Expenditure
Dish TV’s primary expenses include cost of goods and services, personnel cost, administrative
cost, advertisement expenses and selling expenses. The table below shows each as a percentage
of total revenue:
Quarter ended
% of Gross
revenue
Quarter ended
% of Gross
revenue
% Change
Rs. million Dec. - 2014 Sept. - 2014 Q -o -Q
Cost of goods &
services 3,530 49.4 3,407 50.7 3.6
Personnel cost 258 3.6 252 3.7 2.4
Other expenses 308 4.3 295 4.4 4.4
Advertisement
expenses 124 1.7 177 2.6 (29.9)
Selling & distribution
expenses 1,006 14.1 968 14.4 3.9
Total expenses 5,227 73.2 5,100 75.9 2.5
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 4 of 4
Footnotes:
This Earnings Release contains unaudited standalone quarterly results that are prepared as per
Indian Generally Accepted Accounting Principles (GAAP).
Caution Concerning Forward-Looking Statements:
This document includes certain forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause Dish TV’s actual results,
performance or achievements, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such forward-
looking statements are based on numerous assumptions regarding Dish TV’s present & future business
strategies and the environment in which Dish TV will operate in the future. Among the important factors
that could cause Dish TV’s actual results, performance or achievements to differ materially from those in
the forward-looking statements include, among others, the condition of and changes in India’s political
and economic status, government policies, applicable laws, the Indian media and entertainment sectors,
and international and domestic events having a bearing on Dish TV’s business and the media and
entertainment sectors, particularly in regard to the progress of changes in those sectors’ regulatory
regimes, and such other factors beyond Dish TV’s control. Dish TV India Limited is under no obligation to
and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as
a result of new information, future events, or otherwise.
About Dish TV India Limited:
Dish TV is Asia Pacific’s largest direct-to-home (DTH) company and part of one of India’s biggest media
conglomerate – the ‘Zee’ Group. Dish TV has on its platform more than 470 channels & services including
21 audio channels and over 43 HD channels & services. Dish TV uses the NSS-6 satellite platform which is
unique in the Indian subcontinent owing to its automated power control and contoured beam which makes
it suitable for use in ITU K and N rain zones ideally suited for India’s tropical climate. The company also
acquired transponders on the Asiasat 5 platform and very recently on the SES-8 platform which increased
its total bandwidth capacity to 720 MHZ, the largest held by any DTH player in the country. The Company
has a vast distribution network of over 2,080 distributors & over 1,85,000 dealers that span across 8,736
towns in the country. Dish TV customers are serviced by thirteen 24* 7 call centres catering to 11 different
languages to take care of subscriber requirement at any point of time. For more information on the
company, please visit www.dishtv.in
doc_538524390.pdf
DISH TV STRENGTHENS INCREMENTAL MARKET SHARE LEADERSHIP TO 28%;
ADDS 416,000 NET SUBSCRIBERS DURING THE QUARTER
AVERAGE REVENUE PER USER (ARPU)
INCREASES TO RS.177 FROM RS. 172 IN THE PREVIOUS QUARTER
EBITDA MARGIN IMPROVES BY 270 BPS TO REACH 26.8%
NET LOSS FOR THE QUARTER DOWN TO RS. 29 MILLION
DISH TV INDIA LIMITED
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Dish TV India Limited
FC- 9, Sector 16 A, Film City, NOIDA 201301, UP, India
Tel: +91 120 469 8401
CIN: L51909DL1988PLC101836
DISH TV STRENGTHENS INCREMENTAL MARKET SHARE LEADERSHIP TO 28%;
ADDS 416,000 NET SUBSCRIBERS DURING THE QUARTER
AVERAGE REVENUE PER USER (ARPU)
INCREASES TO RS.177 FROM RS. 172 IN THE PREVIOUS QUARTER
EBITDA MARGIN IMPROVES BY 270 BPS TO REACH 26.8%
NET LOSS FOR THE QUARTER DOWN TO RS. 29 MILLION
Highlights
? 416,000 net subscriber additions; total net subscriber base at 12.5 million at the end of
the quarter.
? ARPU at Rs.177
? Subscription revenues of Rs. 6,554 million, up 17.4% Y-o-Y
? EBITDA of Rs. 1,912 million, up 41.1% Y-o-Y
? Free Cash Flow (FCF) of Rs. 298 million
NOIDA, India; January 22, 2015 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV)
today reported third quarter fiscal 2015 standalone subscription and total operating revenues of
Rs. 6,554 million, up 17.4% Y-o-Y and Rs. 7,139 million, up 16.5% Y-o-Y respectively. EBITDA for
the quarter stood at Rs. 1,912 million compared to Rs. 1,355 million in the corresponding quarter
last fiscal. Net Loss for the quarter reduced to Rs. 29 million.
The Board of Directors in its meeting held today, has approved and taken on record the unaudited
standalone results of Dish TV for the quarter ended on December 31, 2014.
Dr. Subhash Chandra, Chairman, Dish TV India Limited, said, “The world economy continues to
keep policy makers around the globe busy. India helped by its monetary policy stance, a stable
government at the Centre and unwinding of the commodities super-cycle is favorably placed to
outrun other emerging markets. An imminent pick-up in investment and demand is expected to
be favorable both for Dish TV as well as the DTH industry.”
“Dish TV recorded marked improvements in its key financials while maintaining market
supremacy during the third quarter of fiscal 2015. Overall, the DTH industry led by Dish TV
recorded a healthy 29% Y-o-Y growth in gross additions compared to the corresponding quarter
last fiscal,” he added.
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 2 of 4
Highlighting Dish TV’s third quarter performance, Mr. Jawahar Goel, Managing Director, Dish TV,
said, “We continued to strengthen our reach in Phase 3 &4 towns much ahead of the government
mandated revised deadline for digitization in those markets. Our bouquet of offerings including
fully loaded sports packs and High Definition (HD) packages helped us fill in the expectation gap
in Phase 1 & 2 households as well. The recently launched ‘Zing’ has been a successful product
and now caters to 8 regional markets with the latest being Tamil Nadu.”
The DTH industry finally seems to be getting a level playing field with broadcaster’s efforts
towards improving declaration from the cable industry. The implementation of Reference
Interconnect Offer (RIO) deals may mark the beginning of a significant upward trend in industry
ARPU’s. Anticipating a brighter 2015, Mr. Goel said, “Though we have been doing everything
possible to boost ARPU’s, the scope of results has been limited due to sticky cable prices. As
MSO’s shell out more for content and increase tax compliance, cable packaging may become a
reality in 2015 thus bringing average revenue per user to respectable levels while creating
headroom for ARPU expansion in DTH.”
The DTH industry entered 2015 with the same uncertainty around taxes that has been haunting
it since its inception. “Though the union budget 2014 was a dampener, we are keeping our fingers
crossed with respect to the budget 2015. All industry stakeholders including Indian Broadcasting
Foundation (IBF), News Broadcasters Association (NBA), Multi System Operators (MSO) and DTH
operators made a joint representation to the Finance Ministry regarding anomalies in the
industry’s tax structure. The representation was received well and we look forward to hearing
the outcome during the budget this year,” said Mr. Goel.
In view of the Government’s ‘Make in India’ campaign Dish TV has been exploring possibilities
for domestic manufacturing of Set-Top-Boxes (STB). “We are closely watching the turn of events
and would take a decision basis the tax regime for local manufacturing that might be modified
by the government in the days ahead. Our proposed subsidiary Dish Infra Services (Private)
Limited will be instrumental in deriving efficiencies from hardware operations,” Mr. Goel said.
Dish TV recorded a quantum jump in its performance during the third quarter compared to the
corresponding period last fiscal. Commenting on the results, Mr. Goel said, “Our subscription
revenues grew 17.4% on a Y-o-Y basis while EBITDA margin expanded 270 basis points to reach
26.8% during the quarter. Net loss for the quarter reduced to Rs. 29 million while churn was
maintained at a comfortable 0.7% per month.”
Condensed statement of operations
The table below shows the condensed statement of operations for Dish TV India Limited for the
third quarter ended December ‘14 compared to the quarter ended September ‘14:
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 3 of 4
Rs. million
Quarter ended Quarter ended % Change
Dec. – 2014 Sept. – 2014 Q -o -Q
Operating revenues 7,139 6,723 6.2
Expenditure 5,227 5,100 2.5
EBITDA 1,912 1,623 17.8
Other income 154 170 (9.4)
Depreciation 1,616 1,519 6.4
Financial expenses 479 425 12.7
Profit / (Loss) before tax (29) (151) -
Tax expense/(write back) - - -
Net Profit / (Loss) for the period (29) (151) -
Expenditure
Dish TV’s primary expenses include cost of goods and services, personnel cost, administrative
cost, advertisement expenses and selling expenses. The table below shows each as a percentage
of total revenue:
Quarter ended
% of Gross
revenue
Quarter ended
% of Gross
revenue
% Change
Rs. million Dec. - 2014 Sept. - 2014 Q -o -Q
Cost of goods &
services 3,530 49.4 3,407 50.7 3.6
Personnel cost 258 3.6 252 3.7 2.4
Other expenses 308 4.3 295 4.4 4.4
Advertisement
expenses 124 1.7 177 2.6 (29.9)
Selling & distribution
expenses 1,006 14.1 968 14.4 3.9
Total expenses 5,227 73.2 5,100 75.9 2.5
EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2014
Page 4 of 4
Footnotes:
This Earnings Release contains unaudited standalone quarterly results that are prepared as per
Indian Generally Accepted Accounting Principles (GAAP).
Caution Concerning Forward-Looking Statements:
This document includes certain forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause Dish TV’s actual results,
performance or achievements, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such forward-
looking statements are based on numerous assumptions regarding Dish TV’s present & future business
strategies and the environment in which Dish TV will operate in the future. Among the important factors
that could cause Dish TV’s actual results, performance or achievements to differ materially from those in
the forward-looking statements include, among others, the condition of and changes in India’s political
and economic status, government policies, applicable laws, the Indian media and entertainment sectors,
and international and domestic events having a bearing on Dish TV’s business and the media and
entertainment sectors, particularly in regard to the progress of changes in those sectors’ regulatory
regimes, and such other factors beyond Dish TV’s control. Dish TV India Limited is under no obligation to
and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as
a result of new information, future events, or otherwise.
About Dish TV India Limited:
Dish TV is Asia Pacific’s largest direct-to-home (DTH) company and part of one of India’s biggest media
conglomerate – the ‘Zee’ Group. Dish TV has on its platform more than 470 channels & services including
21 audio channels and over 43 HD channels & services. Dish TV uses the NSS-6 satellite platform which is
unique in the Indian subcontinent owing to its automated power control and contoured beam which makes
it suitable for use in ITU K and N rain zones ideally suited for India’s tropical climate. The company also
acquired transponders on the Asiasat 5 platform and very recently on the SES-8 platform which increased
its total bandwidth capacity to 720 MHZ, the largest held by any DTH player in the country. The Company
has a vast distribution network of over 2,080 distributors & over 1,85,000 dealers that span across 8,736
towns in the country. Dish TV customers are serviced by thirteen 24* 7 call centres catering to 11 different
languages to take care of subscriber requirement at any point of time. For more information on the
company, please visit www.dishtv.in
doc_538524390.pdf