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MUMBAI: Is a deal between two big
direct-to-home (DTH) operators
brewing?
Dish TV has denied a media report
that it is in talks to acquire Videocon
d2h. According to a CNBC-TV18
report, the two companies are
negotiating on valuations close to $1
billion.
“This is because Videocon’s asking
price is currently higher than what
Dish TV has offered. Even the
lenders have suggested that sale of
Videocon d2h to Dish TV is likely,”
the business news channel reported.
“We are not in talks at all,” Dish TV
managing director Jawahar Goel told
TelevisionPost.com.
NASDAQ-listed Videocon d2h’s
market capital stands at $855 million
and net debt at Rs 1,600 crore (Rs
16 billion). Dish TV’s market cap is
Rs 10,514.42 crore (Rs 105.14
billion).
In its clarification to the news
relating to the proposed acquisition
of Videocon d2h, Dish TV said that it
is “speculative in nature.”
Commenting further, Dish TV said
that “as a policy, it does not
comment on market speculations and
rumours”.
Videocon d2h has also denied to
CNBC-TV18 that it has had any deal
talks with Dish TV.
Dish TV is India’s largest DTH
operator in terms of subscribers. The
company has a net subscriber base
of 14.5 million, as per data till 31
March 2016. Videocon’s total net
subscriber base stands at 11.86
million.
Videocon d2h’s content cost
accounted for 37.8% of the
company’s revenue in FY16. For Dish
TV, programming content and other
costs stood at Rs 855.46 crore (Rs
8.55 billion) in FY16, up 6.8% from
Rs 800.75 crore (Rs 8.01 billion) a
year ago.
The DTH sector in India has not seen
any equity deals among the players
to consolidate the market. Earlier,
Reliance Digital TV was in merger
talks with Kalanithi Maran-promoted
Sun Direct. The deal made some
sense as both DTH operators are
located on the same satellite.
However, the talks fell through over
valuations.
Apart from the Reliance Digital TV
and Sun Direct’s attempt to marry,
there have been no talks among the
other DTH operators to merge or buy
stakes to consolidate the market.
Out of the six private DTH operators
in India, four companies have rapidly
grown their subscriber numbers over
the last few years. While Dish TV is
higher, Tata Sky, Videocon d2h and
Airtel Digital TV all have over 11
million subscribers each.
Sun Direct, on the other hand, has
positioned itself as a southern
regional DTH operator while Reliance
Digital TV has reported tepid growth
in subscriber numbers.
Videocon d2h expects to be
profitable at the net level in the year.
In the exit quarter of FY16, net loss
had narrowed to Rs 21.2 crore (Rs
212 million) compared to Rs 75.7
crore (Rs 757 million) in the prior-
year quarter.
“Fiscal 2017 will be a landmark year
as we will achieve positive free cash
flow break-even during the year. This
is assuming subscriber growth in line
with the current growth trend,”
Videocon d2h executive chairman
Saurabh Dhoot had earlier said...
direct-to-home (DTH) operators
brewing?
Dish TV has denied a media report
that it is in talks to acquire Videocon
d2h. According to a CNBC-TV18
report, the two companies are
negotiating on valuations close to $1
billion.
“This is because Videocon’s asking
price is currently higher than what
Dish TV has offered. Even the
lenders have suggested that sale of
Videocon d2h to Dish TV is likely,”
the business news channel reported.
“We are not in talks at all,” Dish TV
managing director Jawahar Goel told
TelevisionPost.com.
NASDAQ-listed Videocon d2h’s
market capital stands at $855 million
and net debt at Rs 1,600 crore (Rs
16 billion). Dish TV’s market cap is
Rs 10,514.42 crore (Rs 105.14
billion).
In its clarification to the news
relating to the proposed acquisition
of Videocon d2h, Dish TV said that it
is “speculative in nature.”
Commenting further, Dish TV said
that “as a policy, it does not
comment on market speculations and
rumours”.
Videocon d2h has also denied to
CNBC-TV18 that it has had any deal
talks with Dish TV.
Dish TV is India’s largest DTH
operator in terms of subscribers. The
company has a net subscriber base
of 14.5 million, as per data till 31
March 2016. Videocon’s total net
subscriber base stands at 11.86
million.
Videocon d2h’s content cost
accounted for 37.8% of the
company’s revenue in FY16. For Dish
TV, programming content and other
costs stood at Rs 855.46 crore (Rs
8.55 billion) in FY16, up 6.8% from
Rs 800.75 crore (Rs 8.01 billion) a
year ago.
The DTH sector in India has not seen
any equity deals among the players
to consolidate the market. Earlier,
Reliance Digital TV was in merger
talks with Kalanithi Maran-promoted
Sun Direct. The deal made some
sense as both DTH operators are
located on the same satellite.
However, the talks fell through over
valuations.
Apart from the Reliance Digital TV
and Sun Direct’s attempt to marry,
there have been no talks among the
other DTH operators to merge or buy
stakes to consolidate the market.
Out of the six private DTH operators
in India, four companies have rapidly
grown their subscriber numbers over
the last few years. While Dish TV is
higher, Tata Sky, Videocon d2h and
Airtel Digital TV all have over 11
million subscribers each.
Sun Direct, on the other hand, has
positioned itself as a southern
regional DTH operator while Reliance
Digital TV has reported tepid growth
in subscriber numbers.
Videocon d2h expects to be
profitable at the net level in the year.
In the exit quarter of FY16, net loss
had narrowed to Rs 21.2 crore (Rs
212 million) compared to Rs 75.7
crore (Rs 757 million) in the prior-
year quarter.
“Fiscal 2017 will be a landmark year
as we will achieve positive free cash
flow break-even during the year. This
is assuming subscriber growth in line
with the current growth trend,”
Videocon d2h executive chairman
Saurabh Dhoot had earlier said...
