Dish TV’s ARPU, subs adds and capex in FY17(Price hike may come around Diwali)

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Dish TV’s ARPU, subs adds and capex in FY17

Despite ARPU staying flat in the first quarter, Dish TV is sticking to its earlier guidance of 3–4% growth for the full fiscal period.

In FY16, ARPU expanded to Rs 174 from Rs 168 a year ago. The direct-to-home (DTH) company could introduce a price hike around Diwali.

Besides, it expects the earlier price increase introduced in April to settle down. The fiscal first quarter ARPU stood at Rs 174, which was the same in the preceding quarter. In the year-ago period, the ARPU was at Rs 173, implying an increase of just 0.6%.

Dish TV’s ARPU in the quarter ended 30 June 2016 was impacted by the delay in the implementation of digital addressable system (DAS) in Phase III cities due to multiple court cases.

With analogue signals continuing to prevail, a lot of DTH subscribers downgraded to lower packs. Even the steep price hike earlier in the year led to subscribers moving to lower packs in the initial period.

Another factor that could lift ARPU is the increase in Dish TV’s high-definition (HD) subscribers.

The contribution of HD to Dish TV’s gross subscriber additions has gone up from 18–20% to about 31%. Increasing focus on HD, Dish TV earlier unveiled an all-new campaign ‘Ab India Banega HD’.

It also introduced long-duration HD packs. Almost 11% of Dish TV’s net subscriber base is HD. The HD ARPU is Rs 390.

Dish TV’s Rs 99 plan has also been a prime driver for subscriber additions, accounting for 18–20% of the DTH operator’s gross subscriber adds. The ARPU for this pack settles at around Rs 174 as subscribers normally supplement it with three other mini packs.

Read more at: http://www.televisionpost.com/dth/dish-tvs-arpu-subs-adds-and-capex-in-fy17/ | TelevisionPost.com
 
MUMBAI: Despite ARPU staying flat in the first quarter, Dish TV is sticking to its earlier guidance of 3–4% growth for the full fiscal period. In FY16, ARPU expanded to Rs 174 from Rs 168 a year ago.


The direct-to-home (DTH) company could introduce a price hike around Diwali. Besides, it expects the earlier price increase introduced in April to settle down.



The fiscal first quarter ARPU stood at Rs 174, which was the same in the preceding quarter. In the year-ago period, the ARPU was at Rs 173, implying an increase of just 0.6%.


Dish TV’s ARPU in the quarter ended 30 June 2016 was impacted by the delay in the implementation of digital addressable system (DAS) in Phase III cities due to multiple court cases. With analogue signals continuing to prevail, a lot of DTH subscribers downgraded to lower packs. Even the steep price hike earlier in the year led to subscribers moving to lower packs in the initial period.


Another factor that could lift ARPU is the increase in Dish TV’s high-definition (HD) subscribers. The contribution of HD to Dish TV’s gross subscriber additions has gone up from 18–20% to about 31%. Increasing focus on HD, Dish TV earlier unveiled an all-new campaign ‘Ab India Banega HD’. It also introduced long-duration HD packs.
Almost 11% of Dish TV’s net subscriber base is HD. The HD ARPU is Rs 390.


Dish TV’s Rs 99 plan has also been a prime driver for subscriber additions, accounting for 18–20% of the DTH operator’s gross subscriber adds. The ARPU for this pack settles at around Rs 174 as subscribers normally supplement it with three other mini packs.

Zing, aimed at regional-language markets, contributes to about 13% of Dish TV’s incremental subscribers. The company’s net subscriber base stood at 14.9 million as of 30 June 2016.


Dish TV expects to add at least 1.5 million net subscribers in the current fiscal year, which could go up to 1.9 million if DAS Phase IV picks up. Gross targeted subscriber addition is 3 million, which could go up to 3.5 million. In the first quarter of FY17, Dish TV added 402,000 net subscribers.


Dish TV’s capex in FY17 will be between Rs 850 crore (Rs 8.5 billion) and Rs 900 crore (Rs 9 billion), up from Rs 800 crore (Rs 8 billion) a year ago because of more HD subscriber additions and expansion opportunities in DAS Phase IV. In the fiscal first quarter, the company’s capex was Rs 215 crore (Rs 2.15 billion).


In the quarter ended 30 June, Dish TV posted subscription revenue of Rs 728.2 crore (Rs 7.28 billion). Income from bandwidth was Rs 20 crore (Rs 200 million), advertisements Rs 12 crore (Rs 120 million), lease rental Rs 5 crore (Rs 50 million) and the balance was from sales accessories. Operating revenue stood at Rs 778.6 crore (Rs 7.79 billion).

Dish TV’s ARPU, subs adds and capex in FY17 | TelevisionPost.com
 
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