dish tv q4 losses narrow

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2 May 2011
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The Company has posted a net loss of Rs. 370.50mn for the quarter ended March 31, 2011 compared to a net loss of Rs. 605.80mn in the quarter ended March 31, 2010.
Dish TV India Ltd. (Dish TV) on Monday reported fourth quarter standalone revenues of Rs. 4517 million, representing 41.4% growth over the corresponding period last fiscal. The EBITDA for the quarter stood at Rs. 1089 million, recording a huge 93% increase over the corresponding quarter last fiscal. The net loss reduced to Rs. 370 million compared to Rs. 606 million in the fourth quarter last fiscal. The EBITDA margin for the quarter stood at 24.1%.

The company today also reported audited results for the financial year ended on March 31, 2011.

The full year fiscal 2011 standalone revenues stood at Rs. 15,246 million, while EBITDA for the year was Rs. 3,268 million with a margin of 21.4%. Standalone net loss for the year reduced to Rs. 1,897 million compared to Rs. 2,621 million in fiscal 2010.

The Board of Directors in its meeting held today, has approved and taken on record the standalone financial results of Dish TV for the quarter ended on March 31, 2011 and the audited results for the financial year ended March 31, 2011.

Subhash Chandra, Chairman, Dish TV India, said, “The fiscal 2011 witnessed the DTH industry in a never seen before form. The industry set new benchmarks for itself by outperforming its own stupendous growth of earlier years. While industry fundamentals remained strong, competitive intensity was never too frail. Leading from the front, Dish TV garnered a market leading average incremental share of 26% during the year.”

“Despite an ultra-competitive six player market Dish TV’s initiative to drive ARPUs has delivered heartening results. The enhanced High Definition bouquet coupled with the cricketing season enabled significant addition of HD subscribers who contributed their bit in driving Average Revenue per User for the fourth quarter to a level of Rs. 150. Though we are still much lower than the optimal, an increase in ARPUs while maintaining leadership demonstrates the underlying strength of Dish TV’s business model,” he added.

Commenting on the fourth quarter results, Chandra said, “The positive momentum with which Dish TV started fiscal 2011 was further strengthened with each passing quarter. The fourth quarter numbers, just like previous quarters of fiscal 2011, are a result of the management’s constant focus on operational efficiencies, innovation and customer satisfaction while targeting enhancement of shareholder value.”

Jawahar Goel, Managing Director, Dish TV, said, “Digitization continues to play a major role in transforming the face of the Indian media and entertainment industry and Dish TV remains on track to emerge as the largest and most profitable digital platform in the country. Ever since it started operations, Dish TV has been setting new benchmarks. The fourth quarter was witness to Dish TV achieving a 10 million strong subscriber base positioning it as the largest DTH Company in the whole of Asia Pacific. We were soon thereafter able to achieve our fiscal 2011 acquisition target of 3.5 million subscribers.”

“Our growth is testimony to the Indian consumers demand for superior digital content, world class service and an unparalleled viewing experience. During the year Dish TV acquired additional bandwidth on a second satellite for the purpose of accommodating high definition channels and also to build redundancy in the eventuality of a satellite failure,” he added.

Speaking on the recent regulatory initiatives, Goel said, “The Information & Broadcasting Ministry has announced its intent to implement the Digital Addressable Cable System by 2014 leading to a sunset for the analogue cable regime. Dish TV being the market leader in the digital distribution space expects this to have a significant upside for its business.”

Commenting on the overall performance, Goel said, “Our fourth quarter net loss is around 40% lower than the net loss for the corresponding period last fiscal. What is heartening is that this is despite an additional 3.5 million new subscribers added during this period. At the same time, all our key operating metrics have registered marked improvement over the previous year. With a more than 10 million strong and growing subscriber base we have started fiscal 2012 on a strong note and are committed to deliver better on all operating parameters in the year ahead.”

On February 24, ‘11, Dish TV India became the first DTH Company in the country and the whole of Asia Pacific to achieve a 10 million strong subscriber base. Dish TV doubled its subscriber base to reach 10 million in a short span of less than two years.

In a first for the industry, Dish TV recently announced its alignment with ‘Aadhaar’ – a 12 digit unique identification number which the Unique Identification Authority of India (UIDAI) is issuing to all residents of India. Dish TV now accepts the UID as a Know Your Customer (KYC) validation for address and identity proof. Dish TV will be acknowledging the UID numbers of all ‘Aadhaar’ holders as an officially valid document for installation and subscription of its services.

With a last mile reach of more than 10 million subscribers, Dish TV offers a transparent new medium for distinct advertising in an otherwise cluttered environment. Further, with television rating measurement agencies increasing the all India digital weightage in their reported markets to 15%, advertisers have started looking at DTH as a platform of choice for focused advertisement.

To capitalize on this, Dish TV has amplified its focus on advertising revenues as an alternate revenue stream and has in the fourth quarter generated advertisement revenue of Rs. 20 million compared to Rs. 5 million in the corresponding period last fiscal. Dish TV is poised to materially scale up revenue from advertising going forward.
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