Dish TV subscription revenue hit in Q1 FY 19-20

New Delhi: Dish TV India Limited today reported its first-quarter fiscal 2020 consolidated unaudited result.

The DTH operators total income declined from Rs 13,987 million in the previous quarter to Rs 9,263 million the Q1 FY 19-20. Subscription revenues dipped down to Rs 8,261 million in Q1 FY 19-20 as compared to Rs 13,083 million in the previous quarter.

Owing to the netting off of programming cost from revenues, to better reflect the New Tariff Regime, subscription and operating revenues for the quarter are not comparable with the corresponding period last year.

Total expenses went down to Rs 89,995 Lakhs as compared to the Rs 1,49,072 in the previous quarter. The company suffered a net loss of Rs 3,544 crores as compared to Rs 1,36,130 crores in the previous quarter. EBIDTA stood at Rs 5,360 million as compared to Rs 4,150 million in the previous quarter. The company added 209 thousand net subscribers during the quarter, closing net subscriber base of 23.9 million.

Mr Jawahar Goel, CMD, Dish TV India Limited, said, “Positive contribution from the Cricket World Cup and elections no doubt strengthened the first quarter performance but due credit should also be given to the team for dexterously working through the challenges thrown by the New Tariff Regime. I am glad to say that the technological challenges experienced during the migration are now a thing of the past. Majority of our subscribers are well settled in their channel combinations and Dish TV India should continue to raise the bar both in terms of service delivery and financial performance in the coming quarters.”

Mr Anil Dua, Group CEO, Dish TV India Limited, said, “The Tariff Order has led to the beginning of a new era with programming cost becoming a pass-through expense. Apart from the accounting significance, the move indicates a massive shift from the traditional way of content negotiation. With the New Regime emphasizing the role of ala-carte, content would be subject to subscriber’s filtration. As a distributor, we would only be procuring content that sells while adding value through our packaging, quality of our service and new products.”

“A lot of hard work has been put in by all players, be it broadcasters, MSOs, LCOs or DTH platforms, to prepare for the New Regulatory Regime. The TRAI also went all out to ensure a smooth implementation of the Regulation and in the process has acquired significant data insight that should be leveraged to ensure better pricing and higher consumption of channels going forward.” said, Mr Goel.

“Having jump-started the year, we find ourselves all set to leverage the possibility of multiple growth opportunities ahead. In the near term, operating efficiencies resulting from the further realization of synergies due to the combination of Dish TV and d2h should continue to positively contribute to the business and financial performance of the Company,” said, Mr Dua.

At the time of going to press Dish TV, India Ltd is currently trading at Rs 28.40, down by Rs 1.10 or 3.73 % from its previous closing of Rs 29.50 on the BSE.

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