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After his company’s successful listing in the US, Videocon Group chairman Venugopal Dhoot has set an ambitious target for his direct-to-home (DTH) business Videocon d2h.
The DTH company is looking to invest its cash reserves and internal accruals generated over the next five years to the tune of $1 billion (Rs 6,500 crore), Dhoot told Business Standard.
He also said that the company’s $325-million offering was well received by blue-chip funds in the US resulting in foreign direct investment into India.
Noting that the market capitalisation of Videocon d2h was Rs 8,000 crore (Rs 80 billion), the Videocon Group boss said that the response from investors was encouraging with share price of the DTH firm in NASDAQ going up by 25 per cent from the initial public offering (IPO) price.
The company had listed its American Depositary Shares on NASDAQ on 1 April under the ticker VDTH, in a business combination transaction with Silver Eagle Acquisition Corp, wherein it had raised $325 million. Videocon d2h expects to end the current financial year with an operating profit or EBITDA of Rs 820-860 crore (Rs 8.2-8.6 billion).
This indicates an increase of 35-40 per cent over FY15 when the EBITDA (adjusted) stood at Rs 610 crore (Rs 6.10 billion).
Meanwhile, Videocon d2h executive director Saurabh Dhoot has told Deccan Herald that the company will become PAT positive “early next year or late this year (within the next three quarters)”.
He also said that the DTH company is likely to double its subscriber base in the next three to four years particularly due to opportunities provided by the Phases III and IV of digital addressable system (DAS).
The NASDAQ-listed company posted an operating profit (adjusted EBITDA) of Rs 190.27 crore (Rs 1.90 billion) for the quarter ended 30 June 2015 while narrowing net loss to Rs 24.4 crore (Rs 244 million).
The company’s revenue swelled to Rs 662.8 crore (Rs 6.63 billion) during the quarter with subscription revenue contributing Rs 599.4 crore (Rs 5.99 billion).
Expenses during the quarter stood at Rs 618.1 crore (Rs 6.18 billion) with content cost comprising 37 per cent of the total revenue.
The company added 0.46 million net subscribers (0.61 million gross) during the quarter, taking its net subscriber base to 10.64 million as of 30 June.
The gross base stood at 13.7 million. Average revenue per user (ARPU) stood at Rs 205.
Read more at:
http://www.televisionpost.com/dth/videocon-d2hs-investment-plans/
The DTH company is looking to invest its cash reserves and internal accruals generated over the next five years to the tune of $1 billion (Rs 6,500 crore), Dhoot told Business Standard.
He also said that the company’s $325-million offering was well received by blue-chip funds in the US resulting in foreign direct investment into India.
Noting that the market capitalisation of Videocon d2h was Rs 8,000 crore (Rs 80 billion), the Videocon Group boss said that the response from investors was encouraging with share price of the DTH firm in NASDAQ going up by 25 per cent from the initial public offering (IPO) price.
The company had listed its American Depositary Shares on NASDAQ on 1 April under the ticker VDTH, in a business combination transaction with Silver Eagle Acquisition Corp, wherein it had raised $325 million. Videocon d2h expects to end the current financial year with an operating profit or EBITDA of Rs 820-860 crore (Rs 8.2-8.6 billion).
This indicates an increase of 35-40 per cent over FY15 when the EBITDA (adjusted) stood at Rs 610 crore (Rs 6.10 billion).
Meanwhile, Videocon d2h executive director Saurabh Dhoot has told Deccan Herald that the company will become PAT positive “early next year or late this year (within the next three quarters)”.
He also said that the DTH company is likely to double its subscriber base in the next three to four years particularly due to opportunities provided by the Phases III and IV of digital addressable system (DAS).
The NASDAQ-listed company posted an operating profit (adjusted EBITDA) of Rs 190.27 crore (Rs 1.90 billion) for the quarter ended 30 June 2015 while narrowing net loss to Rs 24.4 crore (Rs 244 million).
The company’s revenue swelled to Rs 662.8 crore (Rs 6.63 billion) during the quarter with subscription revenue contributing Rs 599.4 crore (Rs 5.99 billion).
Expenses during the quarter stood at Rs 618.1 crore (Rs 6.18 billion) with content cost comprising 37 per cent of the total revenue.
The company added 0.46 million net subscribers (0.61 million gross) during the quarter, taking its net subscriber base to 10.64 million as of 30 June.
The gross base stood at 13.7 million. Average revenue per user (ARPU) stood at Rs 205.
Read more at:
http://www.televisionpost.com/dth/videocon-d2hs-investment-plans/
