Dish TV eyes 1.7 mn net subscriber adds in FY16; capex at Rs 7.5 bn

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Dish TV, India’s leading direct-to-home (DTH) operator, is looking to mop up over 1.5 million net subscribers and will have a capital expenditure requirement of around Rs 750 crore (Rs 7.5 billion) this fiscal, a senior official said.

The target is to add anywhere between 1.5 million and 1.7 million net subscribers in a year that coincides with the implementation of digital addressable system (DAS) in Phase III towns.

The government has mandated 31 December 2015 as the deadline for Phase III of DAS.

Dish TV had added 2.46 million gross and 1.5 million net subscribers in fiscal 2015. Its total net subscriber base stood at 12.9 million, as of 31 March 2015.

The management’s aim is to repeat the growth performance this year as well. Incidentally, Dish TV is eyeing big growth in Phases III and IV.

It also expects its sub-brand Zing to do well in these price-sensitive markets. Zing accounts for 22 per cent of Dish TV’s incremental net additions.

More subscribers will also mean an increase in Dish TV’s capex for FY16. In FY15, the capex was at Rs 715 crore (Rs 7.15 billion). Dish TV said it is fully funded for growth in Phase III and IV markets.

The DTH company’s set-top-box (STB) inventory stood at 0.8 million, as of 31 March 2015.

Meanwhile, high definition (HD) share in subscriber additions has increased from 17-18 per cent to 22 per cent in Q4, aided by cricket World Cup.

The company is confident of maintaining the HD share this fiscal as well. Carriage revenue In the fourth quarter of FY15, Dish TV earned carriage revenue of Rs 31 crore (Rs 310 million). Going forward, it is expecting the quarterly trend of Rs 30–31 crore (Rs 300–310 million) to continue for all the four quarters of FY16.

As per the guidance, Dish TV’s carriage revenue will be in the range of Rs 120 crore (Rs 1.20 billion) in FY16. In FY15, carriage revenue stood at Rs 81 crore (Rs 810 million).

Read more at: 

http://www.televisionpost.com/dth/dish-tv-eyes-1-7-mn-net-subscriber-adds-in-fy16-capex-at-rs-7-5-bn/
 
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