Tata Sky’s programming cost up 16% in FY15

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Tata Sky, a joint venture between Tata Sons and 21st Century Fox, saw a 15.96 per cent jump in its content cost for the financial year ended 31 March 2015.

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The direct-to-home (DTH) operator paid Rs 1,046.83 crore (Rs 10.47 billion) in programming fee to broadcasters, up from Rs 902.73 crore (Rs 9.03 billion) a year ago.

Programming cost amounts to the money that a DTH operator pays to the broadcasters for offering their content on its platform.  

Incidentally, Dish TV shelled out Rs 800.8 crore (Rs 8.01 billion) as programming cost.

Its contest cost grew just 2.87 per cent over FY14. Videocon d2h’s content cost rose 40.5 per cent to Rs 846.01 crore (Rs 8.46 billion) in FY15. However, Tata Sky’s content cost is now lower at 28.1 per cent of revenue.

As per the annual report, Tata Sky’s total income grew to Rs 3,739 crore (Rs 37.39 billion) in FY15 from Rs 3040.01 crore (Rs 30.40 billion) a year ago. Dish TV’s programming cost stood at 28.8 per cent of revenue and Videocon d2h’s at 36.2 per cent.

Tata Sky’s programming cost could climb in FY16 as most of its content deals with broadcasters were renewed this fiscal.

The DTH company has seen margin expansion in FY15. Ebitda margin stood at 24.5 per cent. Dish TV’s Ebitda margin stood at 26.35 per cent while Videocon d2h’s was at 26.1 per cent (adjusted).

Other expenses Tata Sky’s total expense in FY15 stood at Rs 4,006.31 crore (Rs 40.06 billion), up 20.66 per cent from Rs 3,320.42 crore (Rs 33.20 billion) in FY14.

Out of this transmission and related cost was at Rs 70.50 crore (Rs 705 million), subscriber management cost was at Rs 145.43 crore (Rs 1.45 billion), licence fees (revenue share) was at Rs 373.90 crore (Rs 3.74 billion).

The company also spent Rs 180.43 crore (Rs 1.80 billion) on advertising and promotions during the fiscal.

In FY14, Tata Sky’s transmission and related cost was at Rs 68.25 crore (Rs 682.5 million), subscriber management cost was at Rs 136.15 crore (Rs 1.36 billion), and licence fee was at Rs 304 crore (Rs 3.04 billion).

Advertising promotional expenses stood at Rs 159.7 crore (Rs 1.6 billion) in FY14. Employee benefit expenses rose to Rs 196.58 crore (Rs 1.97 billion) in FY15, compared to Rs 163.38 crore (Rs 1.63 billion) a year ago.

Capex Even as it has migrated its subscribers from MPEG-2 to MPEG-4 boxes, Tata Sky’s capex has been much higher than its competitors. It stood at around Rs 1400 crore (Rs 14 billion) for each of the previous two fiscals.

Read more at: http://www.televisionpost.com/dth/tata-skys-programming-cost-up-16-in-fy15/ | TelevisionPost.com
 
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