Dish TV revenue up 9.6% at Rs 779 crore

Direct-to-home television service provider Dish TV had operating revenue of Rs 779 crore in the September quarter, up 9.6 per cent over a year. This was despite a 15 per cent service tax rate, from 14 per cent in the earlier period. Consolidated subscription revenue was Rs 728.8 crore, up 11.9 per cent.

Effective April 1, Dish had harmonised the accounting of entertainment tax in line with sector practice. Prior to the change, the tax was part of operating expenditure; it is now netted off against subscription revenue. The quarterly figures have been accordingly grouped, to make these comparable. Ebitda (earnings before interest, taxes, depreciation and amortisation) was Rs 264 crore, from Rs 255 crore in the corresponding quarter last year. The Ebitda margin was 33.9 per cent. Profit after tax was Rs 70.1 crore, down 19.7 per cent from last year’s Rs 87 crore. Lower due to a 43.7 per cent drop in other income and a 23 per cent increase in depreciation.

 

In the quarter, Dish added 32 new educational channels launched by the Union ministry of human resource development on its platform. These would be available to subscribers on the Dish TV and Zing platforms. Jawahar Goel, chairman and managing director, said: “Healthy subscriber additions led to a 11.9 per cent year-on-year growth in subscription revenue. Positive free cash flow was Rs 79.1 crore.”

In line with a strategy to go full-throttle in the High Definition market, Dish TV introduced a HD scheme enabling customers to opt for an HD box over a Standard Definition one by paying an additional Rs 120, to get the HD hardware. Subscribers can now get started with HD by subscribing to a HD pack worth Rs 75 a month in addition to their preferred standard definition package.

The chairman said subscriber additions were in line with expectations.

Recent weeks have seen heightened regulatory activity in the broadcast and distribution services sector. The regulator has issued various proposed orders for reactions. On these, Goel, said, “There are certain omissions, optimistic presumptions and unanswered questions that would hopefully be addressed, once the final orders see the light of day. We appreciate the spirit of transparency and non-discrimination that have been the guiding force behind these draft orders and hope DTH will soon get the level playing field it has been seeking. Restrictions placed on carriage fees should go a long way in correcting the industry macro environment.”

Adding: “We continue to remain positive about other regulatory interventions, including the proposed new licence regime for the DTH sector and the impending nationwide rollout of the goods and services tax (GST).The Centre proposing 12 per cent and 18 per cent as the standard rates for a majority of the taxable goods is a welcome step.”