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Dish TV's Q1 operating profit up 22% on higher subscriber addition

Wednesday, 23 July 2014 - 7:25am IST | Place: Mumbai | Agency: dna

Dish TV, India's leading direct-to-home (DTH) operator, reported 21.9% increase in operating profit (Ebitda) at Rs 157.1 crore on a sequential basis in the first quarter (April-June) of fiscal 2015. Strengthening its leadership position in the industry, the company added a net of 3.32 lakh subscribers in the quarter under review thus taking the net subscriber to 1.17 crore. The average revenue per user (Arpu) figure at Rs 170 was same as reported for FY14.

Subhash Chandra, chairman, Dish TV India Ltd, said that going by the first quarter run-rate, the Indian DTH industry seems to have set ground for a 25% growth in subscriber additions this year. "Factoring in the opportunities ahead, Dish TV is optimistic about outgrowing the industry growth rate. The company delivered in line with expectations during the first quarter and reclaimed its position as the fastest growing DTH player in the country," he said.

Operating revenues for the quarter increased marginally by 0.6% from Rs 636.91 crore in the preceding quarter i.e. Q4FY14. The company reduced losses to Rs 16 crore as compared to Rs 149.05 crore in the March 2014 quarter. The company's subscription revenue for the quarter stood at Rs 588.6 crore while total standalone operating revenues was Rs 640.7 crore. The company also took a price hike of 5-7% across the middle and top level packs effective first week of June.

According to Jawahar Goel, managing director, Dish TV, post a mediocre 2014, fiscal 2015 had a promising start for the DTH industry. "Dish TV, supported by a debt light balance sheet and a more willing consumer market, put the pedal to the metal and led the industry growth by garnering the highest incremental share during the quarter. We continued to expand our powerful sub-brand 'Zing' that has propelled the sales of the main brand through a wider reach and top of the mind recall," he said.

Commenting on the budget, Goel said that it was a non-event for the industry at large. "We would continue to push our case for allowance of abatement in service tax along with moderation in entertainment tax till the Goods and Services Tax Act (GST) sees the light of the day.

"We are also hopeful of an early resolution of the DTH license renewal and payment of license fees matter in the industry's favour. We also expect a firm push to digitisation and are confident that encryption, packaging, billing and other critical requirements will be implemented at the last mile," he said.

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