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Videocon d2h on course to turn profitable at net level in Q1

Thakur

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After Dish TV, DTH company Videocon d2h has the potential of turning profitable at the net level in the first quarter of FY17.

This will make it the second Indian DTH company to be PAT positive.

Videocon d2h, which hiked its monthly subscription packages by a minimum of Rs 20 early this year, is expected to narrow its net loss in the exit quarter of FY16. In the third quarter ended 31 December 2015, the company reported net loss of Rs 22 crore (Rs 220 million). The impact of the subscription pack hike will be captured in a full quarter for the first time in the April–June period.

Media analysts expect Videocon d2h’s average revenue per user (ARPU) to increase by 5–6% as a result of this. The DTH operator’s ARPU in the third quarter of FY16 stood at Rs 211. The company is yet to announce its fourth-quarter financial results.

For the DTH sector, subscriber additions have been strong in the fourth quarter. New subscribers have come mainly in the Phase III areas of digital addressable system (DAS).

The T20 World Cup has also been a positive influencer.

According to market estimates, the DTH sector would add around 2.3 million subscribers in the fourth quarter of FY16. Videocon d2h, one of the fastest-growing DTH operators, gets a market share of 25–27% of incremental subscribers that the sector adds.

As of 31 December 2015, Videocon d2h had a net subscriber base of 11.27 million. In the quarter ended December, the company added 0.43 net subscribers.

Almost one-third of Videocon d2h’s incremental subscribers opt for high-definition (HD) connections. Speaking on the implementation of Phase III digitisation after th

Read more at: Videocon d2h on course to turn profitable at net level in Q1 | TelevisionPost.com | TelevisionPost.com
 

Saj 007

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At the end of FY17 d2h will be the biggest loser in this industry...:dodgy
 

Ramesh Dhiman

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If D2H goes the same way in addition of channels and service provided to its customers it never make any profit because most of the customer leave D2H

 
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