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Direct-to-home (DTH) company Videocon d2h is on track to end the current financial year with an operating profit (EBITDA) of Rs 820 crore (Rs 8.2 billion), and Rs 860 crore (Rs 8.6 billion) if Phase III of digital addressable system (DAS) proceeds as expected.
The government has mandated 31 December 2015 as the deadline for Phase III of DAS.
“We reiterate our EBITDA guidance of at least Rs 8.2 billion for the current fiscal year ended March 2016, with guidance increasing up to Rs 8.6 billion if digitisation proceeds on a faster side of expectation.
This range provided previously is based on various estimates for timing and pace of digitisation,” Videocon d2h executive chairman Saurabh Dhoot told investors.
The company had said after the first quarter results that it expected FY16 EBITDA to the tune of Rs 820–860 crore, an increase of approximately 35–40 per cent over FY15 when the EBITDA (adjusted) stood at Rs 610 crore (Rs 6.10 billion).
ARPU Videocon d2h had earlier stated that the ARPU in FY16 was expected to be Rs 215 compared to the year-ago period’s Rs 196.
However, ARPU for the first and second quarters of FY16 stayed flat at Rs 205.
With effect from 1 September 2015, the company raised package prices by Rs 12–23. It believes that the impact of this will be visible in Q3 of FY16 ARPU.
The company believes that its ARPU will continue to grow, led by package price increases, improving HD mix and value-added services.
Videocon d2h CEO Anil Khera said that in the first half itself the company had already achieved about 5 per cent ARPU improvement over FY 2015 and that the company had recently achieved a 4–5 per cent price increase.
“This should reflect in the coming quarter largely in the Q3 as well. We expect this to give a strong uplift to the ARPU.
Also with the upcoming festival period and the Cricket World Cup, we expect improvement and strengthening of the subscriber mix.
On all of this account, I think we remain on track for a healthy ARPU growth,” Khera said. “At the end of the day, I think we are looking at all primary drivers of EBITDA and not just ARPU.
We are looking at net of ARPU margins all of this and with the kind of start we have seen for H2 in all the parameters, I think the overall end some in terms of the EBITDA guidance remains to be on track,” Khera added.
Content cost In the second quarter of the current fiscal, content cost comprised 38.1 per cent of the total revenue, compared to 37 per cent in the first quarter.
While for FY15 it was around 38.4 per cent, the company has guided FY16 content cost at 37 per cent of its revenues.
“We have guided for approximately 37 per cent content cost for the year as against 38.4 per cent last year. If we look at H1, our content cost for H1 has been 37.6 per cent.
Much of our renegotiations as well as anniversaries tend to fall in the H1, which means in the H2, we should get some extra additional leverage.
So we are reasonably on track for the 37 per cent guidance that we have given for the year,” Videocon d2h deputy CEO Rohit Jain told investors.
STB inventory Videocon d2h has an inventory of a million set-top boxes (STBs). It can procure another 500,000 on a one-month notice from in-house production unit. “Our factory can deliver half a million STBs in one month.
So we have one million in hand and we can get half a million on notice of 30 days so that is good enough to cover any spurts during the digitisation,” Dhoot said.
In all, in the first half of the fiscal, Vodeocon d2h added five proprietary services including the recently launched Hollywood HD and a devotional service, 27 new standard-definition channels, and eight new high-definition channels.
Read more at:
http://www.televisionpost.com/dth/videocon-d2h-expects-ebitda-to-be-rs-860-cr-in-fy16-if-das-phase-iii-is-on-track/
The government has mandated 31 December 2015 as the deadline for Phase III of DAS.
“We reiterate our EBITDA guidance of at least Rs 8.2 billion for the current fiscal year ended March 2016, with guidance increasing up to Rs 8.6 billion if digitisation proceeds on a faster side of expectation.
This range provided previously is based on various estimates for timing and pace of digitisation,” Videocon d2h executive chairman Saurabh Dhoot told investors.
The company had said after the first quarter results that it expected FY16 EBITDA to the tune of Rs 820–860 crore, an increase of approximately 35–40 per cent over FY15 when the EBITDA (adjusted) stood at Rs 610 crore (Rs 6.10 billion).
ARPU Videocon d2h had earlier stated that the ARPU in FY16 was expected to be Rs 215 compared to the year-ago period’s Rs 196.
However, ARPU for the first and second quarters of FY16 stayed flat at Rs 205.
With effect from 1 September 2015, the company raised package prices by Rs 12–23. It believes that the impact of this will be visible in Q3 of FY16 ARPU.
The company believes that its ARPU will continue to grow, led by package price increases, improving HD mix and value-added services.
Videocon d2h CEO Anil Khera said that in the first half itself the company had already achieved about 5 per cent ARPU improvement over FY 2015 and that the company had recently achieved a 4–5 per cent price increase.
“This should reflect in the coming quarter largely in the Q3 as well. We expect this to give a strong uplift to the ARPU.
Also with the upcoming festival period and the Cricket World Cup, we expect improvement and strengthening of the subscriber mix.
On all of this account, I think we remain on track for a healthy ARPU growth,” Khera said. “At the end of the day, I think we are looking at all primary drivers of EBITDA and not just ARPU.
We are looking at net of ARPU margins all of this and with the kind of start we have seen for H2 in all the parameters, I think the overall end some in terms of the EBITDA guidance remains to be on track,” Khera added.
Content cost In the second quarter of the current fiscal, content cost comprised 38.1 per cent of the total revenue, compared to 37 per cent in the first quarter.
While for FY15 it was around 38.4 per cent, the company has guided FY16 content cost at 37 per cent of its revenues.
“We have guided for approximately 37 per cent content cost for the year as against 38.4 per cent last year. If we look at H1, our content cost for H1 has been 37.6 per cent.
Much of our renegotiations as well as anniversaries tend to fall in the H1, which means in the H2, we should get some extra additional leverage.
So we are reasonably on track for the 37 per cent guidance that we have given for the year,” Videocon d2h deputy CEO Rohit Jain told investors.
STB inventory Videocon d2h has an inventory of a million set-top boxes (STBs). It can procure another 500,000 on a one-month notice from in-house production unit. “Our factory can deliver half a million STBs in one month.
So we have one million in hand and we can get half a million on notice of 30 days so that is good enough to cover any spurts during the digitisation,” Dhoot said.
In all, in the first half of the fiscal, Vodeocon d2h added five proprietary services including the recently launched Hollywood HD and a devotional service, 27 new standard-definition channels, and eight new high-definition channels.
Read more at:
http://www.televisionpost.com/dth/videocon-d2h-expects-ebitda-to-be-rs-860-cr-in-fy16-if-das-phase-iii-is-on-track/
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