Dish TV has posted a net loss of Rs.323.20 million for the quarter ended June 30, 2012 as compared to net loss of Rs.183.20 million for the corresponding quarter last year.
Total income has increased by 11.19% from Rs. 4,771.10 million for the quarter ended June 30, 2011 to Rs. 5,305.30 million for the same quarter ended June 30, 2012
Dish TV added 504 thousand new subscribers in the quarter ended June 30, 2012 achieving a total of 13.4 million gross and 9.8 million net subscribers at the end of the period. Subscriber Acquisition Cost (SAC) recorded at Rs. 2,145 compared to Rs 2,127 in the immediately preceding quarter
Subhash Chandra, chairman, Dish TV India, said, ``The television distribution industry is on the threshold of a sea change in the way it has operated all these years. Mandatory digitization, though deferred by four months, raises the bar for quality television viewing while promising to correct the ills associated with analog cable. DTH, which started as a fragment of the distribution industry pie is now already the preferred medium for watching television.``
``Though the postponement of the digitization deadline came as a negative surprise, we hope that the October 30th timeline will be adhered to,`` he added.
``With much to look forward to, Dish TV remains well prepared for the digitization run with its efficient ground infrastructure and ability to seed set top boxes within a short turnaround time,`` said Chandra.
Jawahar Goel, managing director, Dish TV, said, ``The first quarter witnessed a partial comeback post the sluggishness before that. However, enhanced consumer demand owing to digitization is yet to fully reflect in acquisition numbers. Nevertheless, sensing DTH’s growing popularity over competition, Dish TV recently initiated a price hike at the entry level as well as across standard definition packs.``
``While some restrain in customer demand in the short term cannot be ruled out, the net impact going forward is going to be ARPU accretive. Moreover, with digitization around the corner, subscription revenues are expected to increase as viewers sample better content on their television. The government, at its end, has been sending firm signals to the industry that there would be no further extension of the deadline,`` he added.
Commenting on the first quarter performance, Goel said, ``Dish TV maintained its leadership share while continuing to focus on the quality of subscribers joining the platform. Churn sustained its downward movement, closing at 1% per month, while ARPU strengthened to Rs. 156, mainly due to the price hikes taken previously. Efficiencies at the cost front helped enhance operating margins despite normalized lease rentals flattening the top-line growth. Enhanced offer fee, coupled with higher number of subscriber adds sequentially, maintained subscriber acquisition cost largely in line with the previous quarter.``
``Net loss of Rs. 323 million was adversely impacted by foreign exchange loss of Rs. 138 million. At the cash flow front, Dish TV continued to be free cash positive for the second consecutive quarter,`` said Goel.
Shares of the company gained Rs 2.85, or 4.19%, to trade at Rs 70.90. The total volume of shares traded was 1,670,913 at the BSE (1.44 p.m., Thursday).
Total income has increased by 11.19% from Rs. 4,771.10 million for the quarter ended June 30, 2011 to Rs. 5,305.30 million for the same quarter ended June 30, 2012
Dish TV added 504 thousand new subscribers in the quarter ended June 30, 2012 achieving a total of 13.4 million gross and 9.8 million net subscribers at the end of the period. Subscriber Acquisition Cost (SAC) recorded at Rs. 2,145 compared to Rs 2,127 in the immediately preceding quarter
Subhash Chandra, chairman, Dish TV India, said, ``The television distribution industry is on the threshold of a sea change in the way it has operated all these years. Mandatory digitization, though deferred by four months, raises the bar for quality television viewing while promising to correct the ills associated with analog cable. DTH, which started as a fragment of the distribution industry pie is now already the preferred medium for watching television.``
``Though the postponement of the digitization deadline came as a negative surprise, we hope that the October 30th timeline will be adhered to,`` he added.
``With much to look forward to, Dish TV remains well prepared for the digitization run with its efficient ground infrastructure and ability to seed set top boxes within a short turnaround time,`` said Chandra.
Jawahar Goel, managing director, Dish TV, said, ``The first quarter witnessed a partial comeback post the sluggishness before that. However, enhanced consumer demand owing to digitization is yet to fully reflect in acquisition numbers. Nevertheless, sensing DTH’s growing popularity over competition, Dish TV recently initiated a price hike at the entry level as well as across standard definition packs.``
``While some restrain in customer demand in the short term cannot be ruled out, the net impact going forward is going to be ARPU accretive. Moreover, with digitization around the corner, subscription revenues are expected to increase as viewers sample better content on their television. The government, at its end, has been sending firm signals to the industry that there would be no further extension of the deadline,`` he added.
Commenting on the first quarter performance, Goel said, ``Dish TV maintained its leadership share while continuing to focus on the quality of subscribers joining the platform. Churn sustained its downward movement, closing at 1% per month, while ARPU strengthened to Rs. 156, mainly due to the price hikes taken previously. Efficiencies at the cost front helped enhance operating margins despite normalized lease rentals flattening the top-line growth. Enhanced offer fee, coupled with higher number of subscriber adds sequentially, maintained subscriber acquisition cost largely in line with the previous quarter.``
``Net loss of Rs. 323 million was adversely impacted by foreign exchange loss of Rs. 138 million. At the cash flow front, Dish TV continued to be free cash positive for the second consecutive quarter,`` said Goel.
Shares of the company gained Rs 2.85, or 4.19%, to trade at Rs 70.90. The total volume of shares traded was 1,670,913 at the BSE (1.44 p.m., Thursday).