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Dish TV Q4 operating revenue up 14.7% on higher subscriber addition

Wednesday, 28 May 2014 - 6:45am IST | Place: Mumbai | Agency: dna

Dish TV India's operating revenues for the fourth quarter ended March 2014 rose 14.7% to Rs 636.90 crore compared with Rs 555.40 crore in the corresponding quarter of the previous year, the company said in a release. The net loss for the quarter ended March 2014 was Rs 149 crore compared with Rs 43.6 crore in the preceding quarter of the last fiscal mainly on account of a prior period adjustment of Rs 116.4 crore.

The company added 226,000 net subscribers during the quarter, taking the total subscriber base to 1.14 crore. Average ARPU for the fiscal was up 7.6% at Rs 170 and the churn was maintained at 0.6% per month.

For the full year ending 2014, the company's standalone revenues stood at Rs 2,509 crore, recording 15.8% growth over the previous fiscal. EBITDA for the year rose 8% to Rs 626.10 crore. During FY14, the company added 810,000 subscribers, while subscription revenue were higher by 17.6% on year.

Subhash Chandra, chairman, Dish TV India Ltd said: "Fiscal 2014 was a challenging year for the economy. Fortunately, however, with a new government backed by a strong mandate at the centre, there is significant hope of growth coming back on track. While things may take some time to get out of that state of virtual inertia, I am hopeful of a strong revival in consumer sentiment pretty soon."

Chandra further said: "In an uncertain macro environment, Dish TV pursued its strategy of self-funded growth; deleveraging the business while being selective about its subscriber additions notwithstanding the noise around digitisation. The result, a healthier balance sheet coupled with the largest subscriber base in the industry and a free cash positive business which is much better equipped to capitalise on the opportunities ahead," he added.

Jawahar Goel, managing director, Dish TV, said, "Unlike fiscal 2013, fiscal 2014 was a disruptive period where we had to choose between immediate benefits and long term sustainability in the hyper competitive DTH industry. Choosing the later, we continued to deleverage while maintaining our subscriber acquisition price point. With a much manageable and scalable debt profile now, we have started 2014 with a significant positive overhaul to our macro parameters."

"With a new government at the centre, the DTH industry is optimistic about rationalisation in the tax regime. We look forward to allowance of abatement in service tax along with moderation in entertainment tax in line with the prevailing structure in Gujarat and other forward looking states. We are also hopeful of an early resolution of the DTH license renewal and payment of license fees matter in the industry's favour, " he added.

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