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Dish TV drops amid volatility after Q1 results

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Capital Market
Last Updated : Jul 26 2013 | 3:35 PM IST

Dish TV India lost 5% to Rs 54.20 at 14:38 IST on BSE after the company reported net loss of Rs 30.37 crore in Q1 June 2013, lower than net loss of Rs 32.32 crore in Q1 June 2012.

The Q1 result was announced during trading hours today, 26 July 2013.

Meanwhile, the S&P BSE Sensex was up 19.69 points or 0.1% at 19,824.45.

On BSE, 12.21 lakh shares were traded in the counter as against average daily volume of 3.06 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 9.37% at the day's low of Rs 51.70 so far during the day, which is a 52-week low for the counter. The stock rose as much as 2.36% at the day's high of Rs 58.40 so far during the day. The stock had hit a 52-week high of Rs 84.90 on 5 October 2012.

The stock had underperformed the market over the past one month till 25 July 2013, sliding 2.98% compared with the Sensex's 6.31% surge. The scrip had also underperformed the market in past one quarter, declining 18.32% as against Sensex's 2.05% rise.

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The mid-cap direct-to-home (DTH) television service provider has equity capital of Rs 106.49 crore. Face value per share is Re 1.

Dish TV India's (Dish) total income rose 12.14% to Rs 606.11 crore in Q1 June 2013 over Q1 June 2012. Operating revenue rose 11.2% to Rs 578.40 crore.

Mr. Subhash Chandra, Chairman, Dish TV India said that first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity.

Mr. Jawahar Goel, Managing Director, Dish TV, said: "In line with our expectations, pack price hikes and improved subscriber quality in the recent months resulted in a strengthened ARPU. ARPU for the quarter increased 5.1% to Rs 165 resulting in a 15.9% YoY increase in subscription revenues. The resultant free cash flow of Rs 48.40 crore compares favorably with Rs 22 crore in the fourth quarter and Rs 65 crore for the whole of fiscal 2013. On the expenses front, higher investment in marketing, brand building and seasonal sports driven content along with the impact of a weak rupee on dollar denominated costs, resulted in a sequentially flat EBITDA margin".

He further said that the company remains committed to add quality subscribers who would be value accretive to the business. The company's successful initiation of a series of entry level price hikes, even in a not so perfect macro environment, demonstrate the company's pricing power and resolve to eliminate subsidies in the medium term, he said. The company continues to expand its distribution network, he said. The company is also making strong progress towards lining up additional transponder capacity to beef up its existing, industry leading bandwidth, he said. The company intends to leverage the additional capacity for distributing localized content as well as strengthen carriage revenues, Mr. Goel said.

With a sustained focus on strengthening the balance sheet, Dish TV looks forward to retiring a significant portion of its outstanding debt, the company said. The company is well positioned, through its internal accruals, to repay approximately Rs 750 crore of outstanding debt through the current fiscal, the company said in a statement.

Dish TV is Asia Pacific's largest direct-to-home (DTH) company and part of India's biggest media conglomerate -- the Zee Group.

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First Published: Jul 26 2013 | 2:39 PM IST

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