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On Q-o-Q basis, for the quarter ended September 2016, operating revenues flat at Rs 779.29 crore. The company added 2.59 lakh subscribers taking the subscriber base at 15.1 million (net). Average Revenue per User (ARPU) at Rs 162 vs Rs 161 in Q2 FY16. OPM was almost flat at 33.9%. The net profit inclined 71% to Rs 70.08 crore due tax credit
On Y-o-Y basis, quarter ended September 2016, operating revenues grew 4% at Rs 779.29 crore. The company added 2.59 lakh subscribers taking the subscriber base at 15.1 million (net). Average Revenue per User (ARPU) at Rs 162 vs Rs 161 in Q2 FY16.The Subscription revenue was at Rs 728.8 crore (up by 12%), lease rental at Rs 4 crore, bandwidth at Rs 25 crore, advertisement revenue at Rs 12 crore and 6 crore others. OPM flat at 33.9%. The net profit declined 19% to Rs 70.08 crore due increase in depreciation & amortization
Consolidated Performance
Quarterly Performance (Sequential)
(Subscription revenue is net of entertainment tax from 1st April 2016)
For the quarter ended September 2016, operating revenues flat at Rs 779.29 crore. The company added 2.59 lakh subscribers taking the subscriber base at 15.1 million (net). Average Revenue per User (ARPU) at Rs 162 vs Rs 161 in Q2 FY16.
OPM was almost flat at 33.9%. The operating profit flat at Rs 264.21 crore.
Other income decreased by 6% to Rs 11.11 crore. Interest cost inclined by 6% to Rs 55.4 crore while depreciation & amortization charge increased by 1% at Rs 163.47 crore. The profit before tax decreased by 11% to Rs 56.45 crore.
Tax credit for the quarter stood at Rs 13.63 crore. The net profit inclined 71% to Rs 70.08 crore due tax credit.
Quarterly Performance (y-o-y)
(Subscription revenue is net of entertainment tax)
For the quarter ended September 2016, operating revenues grew 4% at Rs 779.29 crore. The company added 2.59 lakh subscribers taking the subscriber base at 15.1 million (net). Average Revenue per User (ARPU) at Rs 162 vs Rs 161 in Q2 FY16.
The Subscription revenue was at Rs 728.8 crore (up by 12%), lease rental at Rs 4 crore, bandwidth at Rs 25 crore, advertisement revenue at Rs 12 crore and 6 crore others.
Year-on-Year revenue growth was despite applicability of higher service tax rate of 15% in the second quarter as against 14% in the corresponding quarter last fiscal. Excluding the impact of higher service tax, the like-to-like revenue growth would have been higher.
OPM flat at 33.9%. The operating profit inclined by 4% to Rs 264.21 crore.
Other income decreased by 44% to Rs 11.11 crore. Interest cost inclined by 1% to Rs 55.4 crore while depreciation & amortization charge increased by 23% at Rs 163.47 crore. The profit before tax decreased by 35% to Rs 56.45 crore.
Tax credit for the quarter stood at Rs 13.63 crore. The net profit declined 19% to Rs 70.08 crore due increase in depreciation & amortization.
For half year ended September 2016
The operating revenues grew 5% at Rs 1557.86 crore. OPM inclined by 102 bps to 34%. The operating profit increased by 8% to Rs 529.34 crore.
Other income declined by 51% to Rs 22.47 crore. Interest cost increased by 5% at Rs 107.50 crore. Depreciation & amortization charge increased 11% at Rs 324.73 crore. The profit before tax decreased by 15% to Rs 119.58 crore.
Tax outgo for the half year stood at Rs 8.63 crore. The net profit declined by 21% to Rs 110.95 crore.
Notes to accounts
The process of interim renewal of license has been completed and DTH license is now valid upto 31st March 2017 or still date of notification of new DTH guidelines, whichever is earlier, under the conditions mentioned in the license renewal letter.
Management Comments:
Mr Jawahar Goel, Managing Director, said,
Torrential rains in many parts of the country often force consumers to defer buying a new DTH connection while the existing ones may delay recharging if the going gets too tough. Both sales and recharge however normalize subsequently if the festival season hits early. Targeting phase 3 & 4 markets, our subscriber additions during the quarter remained in-line with expectations.
While the draft Regulations have been formulated with an intention of subscriber welfare, there are certain omissions, optimistic presumptions as well as unanswered questions that would hopefully be addressed once the final orders see the light of the day. We appreciate the spirit of transparency and nondiscrimination that have been the guiding force behind these draft orders and hope that DTH would soon get the level playing field that it has been seeking. Restrictions placed on carriage fees should go a long way in correcting the industry macro environment.
We continue to remain positive about other regulatory interventions including the proposed new license regime for the DTH sector and the impending nationwide roll-out of Goods and Services Tax (GST). The centre proposing 12% and 18% as the standard rates for majority of the taxable goods is a welcome step
Other Developments
Heightened regulatory activity within the Broadcasting and Distribution Services Sector in the last few weeks. Multiple draft orders; the draft Tariff Order, 2016, the draft Interconnection Regulations, 2016 and the draft Quality of Service and Consumer Protection Regulation.
In line with its strategy to go full throttle in the High Definition market, Dish TV introduced a new HD scheme enabling customers to opt for a HD box over a Standard Definition by paying an additional Rs. 120 only to get the HD hardware. Subscribers can now get started with HD by subscribing to pre-designed HD ala-carte packs worth Rs. 75 per month only in addition to their preferred standard definition package.
During the quarter, Dish TV added 32 new educational channels launched by the Ministry of Human Resource Development on its platform. These channels have been started to disseminate high quality educational content throughout the country and would be available to subscribers on the Dish TV and Zing platforms.
Shareholding Pattern
The Promoters stake stood at 64.44%.
Valuation
The stock is trading around Rs 98.80 on the bourses.
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