RE: General Discussion Thread Dish TV
ICICI Direct's research report on Dish TV
Dish TV’s subscriber addition, in Q2FY17, was
lower than expected at 0.26 million (our
estimate 0.38 mn) but largely in line with other
DTH players like Videocon & Airtel, which added
0.23 mn & 0.26 million, respectively. However,
we also note that Dish has gradually slipped in
terms of markets share in net additions from a
leader with 30%+ in FY12 to 25% currently,
which clearly is a sign of worry. The net
subscriber base was at 15.1 million as on
Q2FY17. The company maintained its net
subscriber addition guidance of 1.5-1.9 million
in FY17E. We build in net adds of 1.5 million
and 1.3 millions in FY17E and FY18E,
respectively.
We highlight that Dish, in recent years, has
seemed to have let go its grip on the leadership
position by slipping both in terms of ARPU
growth and market share in net addition.
Furthermore, we also remain wary of frequent
changes in accounting practices by the
company and the prospect of the same getting
accepted by the regulators. We continue to
await a marked improvement in ARPU growth
trajectory and recovery in net adds market
share before changing our stance on the
company. Therefore, we maintain our HOLD
recommendation with TP of Rs 90.