Key highlights

• The company's standalone net sales for Q3 FY13 was up by 21% to Rs 152.97 crore while net loss declined by 59% to Rs 7.42 crore on Y-o-Y basis. The top-line rise was due to higher set top box activation revenue. The company has seeded ~0.73mn boxes in Q3.

• The activation revenue for Q3 was at Rs 33 crore.

• Q3 reflects the full cost of content for Phase I and unlikely to see further increases.

• The consolidated EBIDTA for Q3 is around Rs 50 crore.

• The company has 0.4mn boxes in inventory and has already entered into contracts with vendors for additional 3.5mn boxes.

• The company has already seeded more than 2mn boxes in the 3 metros of Mumbai, Delhi and Kolkata. It has recently launched operations in Kolkata city and now has presence both directly and through JV in the city.

• The company's digital subscriber base stands at ~3.5mn out of which 2.9mn are paying subscribers.

• The company has around 15000 HD subscribers.

• The company enjoys numero uno status in 11 of the 38 Phase 2 cities and has a presence in 25 cities. The company is targeting 4.0 - 4.5mn subscribers in Phase 2. It has put 1.5mn boxes in Phase 2 cities.

• The company has started raising provisional invoices to the LCOs on a net basis (excluding LCO's revenue share). The company has raised invoices to LCOs based on mid package of Rs 220 ARPU, net collections from LCO is much lower and likely to improve by Feb. - March month. Direct billing to customers is likely to start from Q1 FY14.

• The mgmt expects ARPU to reach Rs 400 over period of time.

• The average share of LCO is around 35% - 41% in across the country.

• The company has bought out the remaining stake in one of its largest JV with Bhaskar group. JV with Bhaskar had nearly 0.5mn subscribers and is a dominant player in MP, Chattisgarh, Rajasthan.

• On the content cost, the mgmt said that most of them have been concluded with broadcasters. Most of them are on fixed basis. For Phase 2 cities, the company has to make new contract.

• The company requires around Rs 300 crore for Phase 2.

• The gross debt stands at Rs 650 crore (consolidated) and Rs 490 crore (standalone). Cash on books is at Rs 58 crore (consolidated) and Rs 27 crore (standalone). The debt is expected to go up around Rs 300 – 350 crore.

• The company's strategy is to have as wide market as possible.

• The company has more than 4 lakh broadband subscribers. It is looking at new technologies in this field.

• The mgmt said it doesn't see any substantial decline in carriage fee, as even though carriage fee may have come down at individual broadcaster level, however due to large number of channels capacity, it can be collected from large number of broadcasters.