JitendraKumar
Contributor
- Joined
- 30 Sep 2012
- Messages
- 7,108
- Reaction score
- 4,077
After posting losses for four fiscals ending FY14, India's largest direct-tohome (DTH) company by market shareDish TV India has recorded net profit of Rs 3.1 crore for FY15.Given its dominant market share and ability to raise prices on its offerings, the company will be able to maintain its earnings at this level going forward.
There are a few factors which boosted the company's earnings in the past few quarters. First, the wave of digitisation which would end by 2016 has proved amply beneficial for Dish TV , which has close to 28per cent market share of the DTHindustry. At present, 30 million subscribers have been digitised in the first two phases of digitisation so far. It is believed that another 70 million subscribers may be digitised in subsequent phases.
Over the past few quarters, its average revenue per user (ARPU) has been steadily increasing. This has been achievable due to the company's ability to hike prices. For FY16, the management has guided the growth of close to 7 per cent in its ARPU, which appears achievable considering the dominant market share.
Secondly, the company's regional offering Zing is proving to be lucra tive especially in the remaining phases of digitisation, which also includes rural markets. According to the management, the brand Zing contributed 21per cent incremental subscribers' base. In the March 2015 quarter itself, the company added 40,4000 subscribers. For FY16, the company is expecting to add 1.4-1.7 million incremental subscribers.
Thirdly , the company will benefit from content deals with broadcasters for the next one year (September 2016), which will keep in check its content costs. Lastly , the company has transferred its non-core business segment of providing set top boxes, antennae and other services to its wholly-owned subsidiary Dish Infra Services. This has helped it to save close to 10per cent of overall costs, boosting its earnings considerably .
For FY15, the net revenues grew close to 11per cent to Rs 2,718 crore on a YoY comparison. Its operating profit grew by 20per cent to Rs 669 crore on a YoY comparison. As a result of this, from a loss of Rs 157 crore, the company turned profitable to Rs 3.1 crore.
http://m.economictimes.com/markets/...tisation-price-hikes/articleshow/47498516.cms
There are a few factors which boosted the company's earnings in the past few quarters. First, the wave of digitisation which would end by 2016 has proved amply beneficial for Dish TV , which has close to 28per cent market share of the DTHindustry. At present, 30 million subscribers have been digitised in the first two phases of digitisation so far. It is believed that another 70 million subscribers may be digitised in subsequent phases.
Over the past few quarters, its average revenue per user (ARPU) has been steadily increasing. This has been achievable due to the company's ability to hike prices. For FY16, the management has guided the growth of close to 7 per cent in its ARPU, which appears achievable considering the dominant market share.
Secondly, the company's regional offering Zing is proving to be lucra tive especially in the remaining phases of digitisation, which also includes rural markets. According to the management, the brand Zing contributed 21per cent incremental subscribers' base. In the March 2015 quarter itself, the company added 40,4000 subscribers. For FY16, the company is expecting to add 1.4-1.7 million incremental subscribers.
Thirdly , the company will benefit from content deals with broadcasters for the next one year (September 2016), which will keep in check its content costs. Lastly , the company has transferred its non-core business segment of providing set top boxes, antennae and other services to its wholly-owned subsidiary Dish Infra Services. This has helped it to save close to 10per cent of overall costs, boosting its earnings considerably .
For FY15, the net revenues grew close to 11per cent to Rs 2,718 crore on a YoY comparison. Its operating profit grew by 20per cent to Rs 669 crore on a YoY comparison. As a result of this, from a loss of Rs 157 crore, the company turned profitable to Rs 3.1 crore.
http://m.economictimes.com/markets/...tisation-price-hikes/articleshow/47498516.cms
