Co's standalone subscription and total operating revenues up 12% and 11.9% respectively in July-September quarter
Backing Prime Minister Narendra Modi's call for 'Make in India' products, India's leading direct-to-home (DTH) operator Dish TV is re-evaluating possibilities of domestic manufacturing of set-top-boxes. Jawahar Goel, managing director, Dish TV, said, the company was hopeful of improvement in the hardware economics of STBs sourced from India. "We hope that the taxation structure will be suitably amended to benefit local production," said Goel.
And while multiple taxation remains one of the biggest challenge for the Indian DTH industry, Goel expressed optimism about the economic advantages of the Goods and Services Tax (GST), saying its implementation will result in potential cost savings and margin expansion and the company was looking forward to its early enactment.
The DTH operator also announced results for second quarter fiscal 2015 wherein the company reported 12% and 11.9% year-on-year (YoY) increase in standalone subscription and total operating revenues at Rs 616.8 crore and Rs 672.3 crore respectively.
While operating profit (ebitda) for the quarter ended September 2014 was Rs 162.3 crore compared to Rs 155.4 crore in the corresponding quarter last fiscal, net loss for the quarter stood at Rs 15.1 crore. Average revenue per user for the second quarter increased to Rs 172 from Rs 170 in the previous quarter.
Commenting on the company's performance, Subhash Chandra, chairman, Dish TV India Ltd, said, that a general feel good factor linked to hopes of an economic revival contributed to higher sales for the DTH industry. "The industry, led by Dish TV, recorded a healthy 38% YoY growth in gross additions during the second quarter of fiscal 2015. Our performance during the second quarter is a reflection of our belief that a financially stable business is best placed to capitalise on any growth opportunity.
"While we have been growing in the right direction, growth without healthy returns to our shareholders falls below our aspirations. However, we are committed to generate them and by focusing on revenues, expenses and balance sheet quality we are building near term benefits for all our stakeholders," he said.
Dish TV maintained its leadership position during the second quarter. Buoyed by a healthy growth in high-definition (HD) sales and good traction coming in from sale of the 'Zing' brand, the company further strengthened its position as the fastest growing DTH player in the country. Despite the push back of digitisation, Goel said, Zing helped propel the sales of the flagship 'DishTV' brand through a wider reach and top of the mind recall.
"We believe that the digitisation push back provides a window of opportunity both for the early-movers as well as for those who have not been able to monetise the roll-out. We do hope that the cable industry will ensure full implementation of gross billing, encryption and packaging in phase 1 and 2 during this extended time-period. For early movers like Dish TV, it's an opportunity to reach out uninterrupted to the masses in Phase 3 and 4 and capture leading market share there," Goel said.
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