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Videocon d2h, the DTH arm of Videocon Group, has guided for operating profit to be in the region of Rs 2.4 billion in the first quarter ended 30 June 2016.
This marks a 26% rise in EBITDA over the year-ago period.
The company expects to be profitable at the net level in the year. In the exit quarter of FY16, net loss had narrowed to Rs 21.2 crore (Rs 212 million) compared to Rs 75.7 crore (Rs 757 million) in the prior-year quarter.
“Fiscal 2017 will be a landmark year as we will also achieve positive free cash flow break-even during the year.
This is assuming subscriber growth in line with the current growth trend,” Videocon d2h executive chairman Saurabh Dhoot told media analysts.
Videocon d2h expects to mop up 400,000 net subscriber additions in the first quarter of FY17 compared to 460,000 a year ago.
If the pace of digital addressable system (DAS) in Phases III and IV accelerates, then the new subscribers added will be more than the guided figure.
Videocon d2h is targeting to add at least 2.5 million gross subscribers during the full fiscal.
In FY16, the company acquired 2.65 million gross subscribers. The addition of net subscribers in FY16 stood at 1.68 million. As of 31 March 2016, the company’s net subscriber base stood at 11.86 million.
Videocon d2h’s revenue from alternative streams is seeing growth.
“The company’s alternative revenue streams such as carriage, advertising and value-added services are beginning to contribute meaningfully to revenue and EBITDA,” said Dhoot.
“As the platform becomes stronger, I am getting more and more excited about these revenue streams and this will continue to support margin expansion in the future.”
Videocon d2h’s carriage revenue stood at Rs 26.9 crore (Rs 269 million) for the quarter ended 31 March 2016, up 82% from the prior-year quarter. Advertising revenue was at Rs 10.5 crore (Rs 105 million) from Rs 6.3 crore (Rs 63 million).
In Fy16, the DTH company added five proprietary services, namely d2h Cinema HD, d2h Hollywood, d2h Darshan, d2h Nursery Rhymes and d2h Spice.
The company will be launching a new mobile app soon, which will convert the smartphone into a smart remote with a whole host of new features.
Videocon d2h has also test-launched a new hardware, the HD smart connect set-top box (STB) or the connective box.
This converts and gives powers to users to convert their existing TV into a smart TV.
The connected box will allow subscribers to view normal DTH service and also connect to the internet to browse content from Twitter, Facebook, Daily Motion, video-on-demand sites and OTT apps.
“With the improving broadband scenario in India and the potential convergence of technologies in the times to come, the connective STB and its variants will play an important part in our future,” Dhoot said.
Read more at: Videocon d2h expects Q1 EBITDA to be up 26% at Rs 2.4 bn, subs adds to be 0.4 mn | TelevisionPost.com | TelevisionPost.com
This marks a 26% rise in EBITDA over the year-ago period.
The company expects to be profitable at the net level in the year. In the exit quarter of FY16, net loss had narrowed to Rs 21.2 crore (Rs 212 million) compared to Rs 75.7 crore (Rs 757 million) in the prior-year quarter.
“Fiscal 2017 will be a landmark year as we will also achieve positive free cash flow break-even during the year.
This is assuming subscriber growth in line with the current growth trend,” Videocon d2h executive chairman Saurabh Dhoot told media analysts.
Videocon d2h expects to mop up 400,000 net subscriber additions in the first quarter of FY17 compared to 460,000 a year ago.
If the pace of digital addressable system (DAS) in Phases III and IV accelerates, then the new subscribers added will be more than the guided figure.
Videocon d2h is targeting to add at least 2.5 million gross subscribers during the full fiscal.
In FY16, the company acquired 2.65 million gross subscribers. The addition of net subscribers in FY16 stood at 1.68 million. As of 31 March 2016, the company’s net subscriber base stood at 11.86 million.
Videocon d2h’s revenue from alternative streams is seeing growth.
“The company’s alternative revenue streams such as carriage, advertising and value-added services are beginning to contribute meaningfully to revenue and EBITDA,” said Dhoot.
“As the platform becomes stronger, I am getting more and more excited about these revenue streams and this will continue to support margin expansion in the future.”
Videocon d2h’s carriage revenue stood at Rs 26.9 crore (Rs 269 million) for the quarter ended 31 March 2016, up 82% from the prior-year quarter. Advertising revenue was at Rs 10.5 crore (Rs 105 million) from Rs 6.3 crore (Rs 63 million).
In Fy16, the DTH company added five proprietary services, namely d2h Cinema HD, d2h Hollywood, d2h Darshan, d2h Nursery Rhymes and d2h Spice.
The company will be launching a new mobile app soon, which will convert the smartphone into a smart remote with a whole host of new features.
Videocon d2h has also test-launched a new hardware, the HD smart connect set-top box (STB) or the connective box.
This converts and gives powers to users to convert their existing TV into a smart TV.
The connected box will allow subscribers to view normal DTH service and also connect to the internet to browse content from Twitter, Facebook, Daily Motion, video-on-demand sites and OTT apps.
“With the improving broadband scenario in India and the potential convergence of technologies in the times to come, the connective STB and its variants will play an important part in our future,” Dhoot said.
Read more at: Videocon d2h expects Q1 EBITDA to be up 26% at Rs 2.4 bn, subs adds to be 0.4 mn | TelevisionPost.com | TelevisionPost.com
