ITV

Category: DTH Operator

  • Reliance Big DTH to take FTA route under new management?

    Reliance Big DTH to take FTA route under new management?

    MUMBAI:  Is another free-to-air (FTA) DTH operator pawing to take off in India? If the statements made by the Pantel Technologies (the company that took over the ailing Reliance Big DTH) management in media releases are to be believed, then the answer is in the affirmative.

    Yesterday, Sri Adhikari Brothers Television Network and Pantel Technologies announced through a release on the Bombay Stock Exchange that the companies had arrived at an understanding to jointly create a bouquet of over 20 FTA channels comprising diverse genres, such as entertainment, kids, infotainment, mythological, and movies.

    The release further stated that “the varied product offering will strengthen the business of Reliance Big TV (RBTV) and will give a leg up to the largest FTA network in India. FTA channels have shown an upsurge with all the leading broadcasters showing a keen interest in the FTA product offering.”

    Pantel Technologies CMD Vijendra Singh was quoted in the release as saying: “Our main aim is to develop the entertainment appetite of the rural market and create an alternative India. With our coalition with Sab Group, we will bring together our technological proficiency and their content expertise thereby enabling us to provide good content for rural India, which is what we are committed to for their upliftment.”

    Pantel had acquired the entire shareholding of RBTV with the business on an “as-is, where-is” basis. The transaction ensured that all 1.2 million customers of Big TV would continue to enjoy uninterrupted services, the company said in a statement. The deal also ensured continuity of employment for about 500 employees of RBTV.

    Attempts to connect with SAB group managing director Markand Adhikari and Singh were not successful.

    However, if Indiantelevision.com’s interpretation of the announcement today is correct, then it should prove encouraging for private broadcasters. The  Prasar Bharti-owned FTA service FreeDish has been an unmitigated success but its future looks in doubt with conflicting reports appearing about whether the powers that be want to continue providing the slots to private players. According to sources in the public sector Prasar Bharti, minister of information and broadcasting Smriti Irani has put a full stop to the e-auction process as the government wants to populate the FreeDish platform with its own channels.

    Also Read:  Veecon Media acquires Reliance Big TV

    Sab Group, Pantel Tech join hands to launch over 20 FTA channels

    Reliance launches JioTV for web

  • MIB clears path for Dish TV Videocon

    MIB clears path for Dish TV Videocon

    MUMBAI: Even as a new global media powerhouse was created in the US yesterday with Disney’s buyout of Fox’s entertainment assets for $52.4 billion, India’s ministry of information & broadcasting (MIB) has cleared the decks for Dish TV and Videocon d2h paving the pathway for the creation of a mammoth DTH company.

    The companies had received the green signal from the Mumbai division of the national company law tribunal some months ago after which the ministry’s approval was pending. Dish TV and Videocon d2h reported separate revenue and EBITDA numbers which at a pro-forma level add up to Rs 60,862 million and Rs 19,909 million for FY17. Following the amalgamation, the combined entity will be renamed as Dish TV Videocon Limited.  

    As on 30 September 2017, the duo together serve more than 29 million customers.

    Dish TV CMD Jawahar Goel says, ““It has been a long journey since the announcement of the agreement between the two companies a year back. We would like to thank the ministry of information and broadcasting, the national company law tribunal, the competition commission of India, the securities and exchange board of India, the stock exchanges and all other stakeholders for showing their trust in us. I would also like to express our gratitude to our shareholders for standing by us through the transaction and believing in us to take the combined entity to the next level going forward.”

    Dish TV group CEO Anil Dua says, “Together, Dish TV and Videocon d2h are going to write history as we embark on this journey of delighting our 29 million and growing customer base. It is an exciting way ahead as we get this opportunity to leverage the individual strengths of the two organisations. I feel reassured looking at the formidable combination of these two talented teams that are now going to be working together towards a shared vision and common goals.”

    Dish TV Videocon is expected to provide better synergies and growth opportunities through enhanced after-sales, distribution and technology capabilities. Aon, Deloitte and PwC have been roped in to help it with project management for seamless integration of core functions, processes and technology infrastructure.

    It has been a year-long journey for Dish and Videocon since they announced the intent to merge last November. The scheme will take effect in the coming weeks.

    For the quarter ended 30 September 2017, Videocon d2h saw PAT of Rs 168 million and an addition of 0.21 million subscribers, taking its total to 13.25 million. On the other hand, Dish TV’s PAT for the same quarter was Rs 689.6 million while subscribers increased by 0.188 million to hit 15.9 million.

    The new year is expected to be a good one for the dynamic duo. And they have every reason to celebrate.

    Also Read:  Dish TV reports improved operating profits for second quarter

    Videocon d2h reports another profitable quarter

    Dish TV–D2H merger gets NCLT approval

  • Airtel TV valuation at $1.75 bn as Warburg Pincus picks up 20% stake

    Airtel TV valuation at $1.75 bn as Warburg Pincus picks up 20% stake

    MUMBAI: Confidence in the TV distribution sector seems to be returning, the OTT euphoria notwithstanding. Bharti Airtel today announced that it has struck a deal with Warburg Pincus under which an affiliate of the global private equity firm will acquire a 20 per cent equity stake in its DTH arm which operates under Bharti Telemedia Ltd.

    The cost of the acquisition: $350 million. 15 per cent of this will be offloaded by Bharti Airtel while the remaining five per cent will come from another affiliate of India’s largest telecom operator.

    Bharti Telemedia has 14 million subscribers for its DTH service under the Airtel TV brand which places it among the top three players in India, after Dish TV-Videocon and Tata Sky. The other players in the satellite TV operating space are FTA service FreeDish – run by pubcaster Doordarshan and Sun Direct which is operated by south Indian media powerhouse Sun TV network.

    In the year ending 31 March 2017, Airtel TV had average revenues per user per month of Rs 231 and it reported overall revenues of Rs 3430.6 crore for the period. In Q2 ended 30 September 2017, it turned out a top line of Rs 936.9 crore.

    Bharti Airtel had roped in former Mondelez vet Sunil Taldar in December 2016 as CEO & director DTH and a member of the company’s board with a direct reporting line to the company’s MD & CEO-south Asia Gopal Vittal. He had then replaced Shashi Arora who had run the DTH unit for five years before being mandated to run its payments bank.

    Airtel Digital TV has 1,500 partners all over India with 158,000 recharge points in 630 districts.

    The acquisition price of $350 million values Airtel’s DTH arm at $1.75 billion, which is by no means something to sniff at in this sector. Dish TV-Videocon d2h had a valuation of $2.7 billion at the time of the merger announcement of the two operators a year and a half ago.

    What attracted Warburg Pincus to invest in Airtel’s DTH business? Its India managing director and co-head Vishal Mahadevia explains, “The Indian digital TV market is expanding rapidly and we believe Airtel DTH is well positioned to capitalise on the incremental growth in digitisation in tier 3 and tier 4 towns and rural areas. We look forward to working with Sunil Bharti Mittal and Bharti group again after our successful partnership years ago and we look forward to supporting the management team in the next phase of the company’s growth.”

  • Warburg Pincus to buy 20% in Airtel’s DTH arm

    Warburg Pincus to buy 20% in Airtel’s DTH arm

    MUMBAI: Global private equity firm Warburg Pincus will acquire up to 20 per cent equity stake in Bharti Telemedia Limited (Bharati Telemedia), the DTH arm of Airtel, for around $350 million. Of this, 15 per cent stake will be sold by Bharti Airtel and the remaining by another Bharti entity, which holds 5 per cent stake, the telco said in a statement.

    The Airtel board has approved the transaction, which is subject to regulatory approvals. As part of the transaction, Viraj Sawhney, MD, Warburg Pincus India, will join the board of Bharti Telemedia.

    “Airtel has enjoyed a very successful partnership with Warburg Pincus in the past and we are excited to partner with them once again in an attractive and fast growing space. Airtel TV is very well positioned in the DTH space, and we are committed to grow our share of the market through a combination of innovation, value engineering, customer service and distribution initiatives. We look forward to working with Warburg Pincus towards achieving our vision of making Airtel TV India’s leading DTH platform,” Gopal Vittal, MD and CEO (India & South Asia), Bharti Airtel said in a joint statement.

    Upon closing of the transaction, Airtel will own an 80 per cent equity stake in Bharti Telemedia Limited.

    “The Indian Digital TV market is expanding rapidly and we believe that Airtel DTH is well positioned to capitalize on incremental growth in digitisation and new TV penetration in Tier 3 and 4 towns and rural areas. We are pleased to be working alongside Sunil Bharti Mittal and the Bharti group again following our successful partnership many years ago, and we look forward to supporting the management team during the next phase of the Company’s growth,” Vishal Mahadevia, MD and co-head, Warburg Pincus India, said.

    Bharti Telemedia offers DTH services under the Airtel TV brand. It had around 14 million subscribers and around $550 million in revenue during the 12 months ended September 30, 2017.

  • Dish TV reports improved operating profits for second quarter

    Dish TV reports improved operating profits for second quarter

    BENGALURU: Hit by a double whammy–that of demonetisation and the implementation of the new goods and services tax (GST)–Indian media and entertainment (M&E) companies have been struggling to attain and/or maintain black in their financials. Direct to home or DTH was one of the components of the M&E industry that had slowly started reporting profits – operating or plain profits after tax. The Essel group’s DTH services company Dish TV India Ltd (DishTV) was one of the first companies from the Indian carriage industry that had started churning out profits until the aforementioned double whammy. Subscription collections were suddenly hit because people just didn’t have enough legal currency. Average revenue per user (ARPU) fell – last year in the quarter before demonetization, the company had reported ARPU of Rs 162. For the quarter ended 30 September 2017 (Q2-18, quarter under review), ARPU was Rs 149. In the immediate trailing quarter (Q1-18), ARPU was slightly lower at Rs 148.

    Over the last few quarters post demonetisation, Dish TV’s net profits were in the red. However, during these quarters, operating profits (EBIDTA) were positive and that seems to have improved for the quarter under review as compared to the immediate trailing quarter (q-o-q, Q1-18). Year-over-year however, Dish TV has reported a net loss and lower operating profit for Q2-18 as compared to net profit and EBIDTA numbers of the corresponding year ago.

    Dish TV reported 7.4 percent higher q-o-q EBIDTA for Q2-18 at Rs 2,160.8 million (28.9 percent margin – on operating revenue) as compared to Rs 2012.0 million (27.2 percent margin) for Q1-18. EBIDTA for Q2-17 was Rs 2,656.8 million (34.1 percent margin). The company’s net loss however widened q-o-q to Rs 178.7 million during the quarter under review as compared to a net loss of Rs 135.1 million in Q1-18 and a net profit after tax of Rs 689.6 million (8.8 percent margin) for Q2-17.

    The silver lining for the company has been its growing subscriber base, and this despite lower ARPU has resulted in 1.3 percent q-o-q increase of operating revenue to Rs 7,585.80 million for Q2-18 as compared to Rs 7,388.8 in Q1-18. However, y-o-y operating revenue during the quarter under review was 3.9 percent lower as compared the Rs 7,792.8 million for Q2-17.

    The company’s subscriber base has increased by 0.188 million subscribers during the quarter under review and it has reported a subscriber base of 15.9 million. The company had closed the corresponding year ago quarter with a subscriber base of 15.1 million – it had added 0.259 million subscribers in Q2-17. Consequently, Dish TV’s subscription revenue grew 1.9 percent q-o-q during the quarter under review to Rs 7,049 million. Year-on-year, subscription revenues were 3.3 percent lower than the Rs 7,288 million reported for Q2-17. Churn for Q2-18 was 0.8 percent

    A look at the other numbers

    Total expense in Q2-18 increased 6 percent y-o-y to Rs 7,834.7 million from Rs 7,393.1 million. Employee benefits expense was almost flat (declined 0.2 percent) y-o-y to Rs 366.3 million from Rs 367 million. Operating expenses in Q2-18 increased 6.6 percent y-o-y to Rs 3,893.4 million from Rs 3,651.9 million. Other expenses during the quarter under review declined 4.8 percent to Rs 1,038.0 million from Rs 1,090.8 million in Q2-17. Finance costs in Q2-18 increased 6.4 percent y-o-y to Rs 610.9 million from Rs 574.2 million.

    Amalgamation of Videocon D2h into Dish TV

    The proposed combination of Dish TV and Videocon d2h would create one of the world’s leading DTH platform.

    Dish TV CMD Jawahar Goel said, “We have been eager to get back to our stakeholders with the news of the successful closure of the merger. With all other approvals in place, the only approval pending is from the Ministry of Information and Broadcasting. We are optimistic about hearing back from the MIB any moment now and hope to close the merger at the earliest thereafter.”

     “We remain excited about the next phase of growth that the combined entity, Dish TV Videocon Limited, will go through and are committed to make the combination a mega success. On the synergy front, we stick to our guidance of Rs. 1,800 million for FY18 and Rs. 5,100 million for FY19,” he added.

     

  • Videocon d2h reports another profitable quarter

    Videocon d2h reports another profitable quarter

    BENGALURU: Saurabh-Dhoot led Indian DTH player Videocon d2h reported profit after tax (PAT) of Rs 168 million for the quarter ended 30 September 2017 (Q2 FY 2017-18). The company had reported PAT of Rs 12 million for the immediate trailing quarter (Q1 FY 2017-18) and PAT of Rs 148 million for the corresponding year ago quarter (Q2 FY 2016-17). Adjusted earnings before interest, taxes, depreciation, and amortisation (EBIDTA) increased by 6.9 percent year-on-year (y-o-y) during the quarter under review to Rs 2,805 million from Rs 2,625 million. Adjusted EBIDTA less capital expenditure increased by 29.4 percent y-o-y to Rs 1,174 million as compared with Rs 907 million.

    Videocon d2h revenue from operations increased by 7.5 percent y-o-y during the quarter to Rs 8,346 million from Rs 7,762 million. Subscription and activation revenue increased by 8.4 percent y-o-y to Rs 7,701 million from Rs 7,107 million.

    Subscriber matrices

    The company’s subscriber base increased by 0.21 million during Q2 FY 2017-18 to 13.25 million from 13.04 million in the immediate trailing quarter. The company had a subscriber base of 12.52 million in Q2 FY 2016-17. Videocon d2h reported a quarterly subscriber churn of 0.62 percent, which was less than half the churn of 1.27 percent reported for Q1 FY 2017-18. Subscriber churn for Q2 FY 2016-17 was 0.95 percent. The company has reported higher average revenue per user (ARPU) of Rs 212 for the quarter under review as against Rs 198 for the immediate trailing quarter and Rs 209 for the corresponding year ago quarter.

    A look at the other numbers

    Total expenses rose by 7.5 percent y-o-y to Rs 7,357 million in Q2 FY 2017-18 from Rs 6,843 million Operating expenses increased by 8.4 percent y-o-y to Rs 4,391 million from Rs 4,052 million. Administration and other expenses jumped up by 50.8 percent y-o-y to Rs 276 million from Rs 183 million. Employee benefits expenses declined by 23.8 percent y-o-y to Rs 240 million from Rs 315 million. Selling and distribution expenses increased by 4.3 percent y-o-y to Rs 633 million from Rs 607 million.

    Company speak

    Videocon d2h executive chairman Dhoot said, “I am delighted to report that we have delivered a strong quarter and have reported the highest ever quarterly adjusted EBITDA in the history of Videocon d2h at INR 2.81 billion. More importantly, adjusted EBITDA per subscriber grew by double digits from the last quarter and came in at INR 71 per subscriber per month, supported by better revenue realisations and higher operational efficiencies.”

    He added, “We remain optimistic on the future outlook of the company as we merge with Dish TV India Ltd in the coming weeks, subject to receipt of approval from the Ministry of Information and Broadcasting. The businesses of Videocon d2h and Dish TV India will be amalgamated for financial reporting purposes from October 1, 2017, the date appointed by the Honorable National Company Law Tribunal. We believe that the merged entity would be one of the largest pay TV platforms in the world in terms of subscriber base, according to company estimates. We are excited about the growth prospects of the merged entity given its large scale, solid business fundamentals, and a healthy balance sheet.”

  • Sun Direct partners Harmonic to add 80 HD channels

    Sun Direct partners Harmonic to add 80 HD channels

    MUMBAI: DTH operator Sun Direct (Sun) has taken up a new HEVC media processing solution from video delivery services, Harmonic, which will enable it to entertain its viewers with 80 extra HD channels.

    Using Harmonic’s Electra X2 encoder and Prostream multiplexer, Sun can stream extra channels from existing four transponders at low bitrates.

    “Today’s television viewers want exceptional video quality and a broad selection of channels. When we looked into expanding our HD service offering, we needed to partner with an expert in satellite deployments and encoding efficiency,” said Sun Group CTO S Kannan. “Harmonic enables us to deliver more channels using the same amount of transponder space so that we can focus on increasing subscriber satisfaction and revenue growth.”

    The Electra X2 uses encoding to improve video quality while its integration with ProStream enabling Sun to increase bandwidth efficiency. The ProStream processor maximises transponder savings, supporting up to 100 statmux services per platform. Sun’s entire system workflow is IP-based and controlled by Harmonic’s NMX network management system.

    “Sun Direct plans to roll out additional HD STBs this year, and Harmonic is leading the way in helping the operator capitalise on the associated higher subscription rates. They primarily chose Harmonic for outstanding encoding efficiency, pristine video quality and our long-term and continued deployment support,” said Harmonic APAC vice president sales Tony Berthaud.

  • DishTV introduces Dance Active Service

    DishTV introduces Dance Active Service

    Mumbai: DishTV, Asia’s largest DTH player, has set the stage for millions of aspiring dancers of the country to pursue their passion by launching the new ‘Dance Active’ service on their platform. With this introduction DishTV will enable its strong subscriber base of 15.7 million (Net) to actively follow their interests and go beyond conventional TV Entertainment. DishTV continues its legacy of enhancing subscriber experience by providing such unique services.

    Dance Active, the latest addition to DishTV’s exciting pool of active services will provide dancing lessons to all the dance enthusiasts and enable them to learn different dance forms in the comfort of their living rooms.

    Powered by ‘Dance with Madhuri’, Dish TV’s Dance Active service will provide 100+ hours of dance content. Subscribers can choose any dance form as per their choice and preference from a repertoire of Dance styles ranging from Indian Classical like Kathak, Bharatanatyam, to Western forms like Jazz, Contemporary, Hip Hop, Salsa, Bachata and freestyle Bollywood. With the support from gurus such as Pt. Birju Maharaj, Saroj Khan, Terence Lewis, Remo D’Souza and other renowned choreographers from India, Dance Active aims at becoming a one stop destination for learning all kinds of dance forms giving it a truly global appeal.

    “Speaking about the new active service, Mr. Anil Dua, Group Chief Executive Officer DishTV said “DishTV stands for quality and commitment, and being the largest DTH brand in the country, we believe in providing a wide range of content and services to our subscribers and enriching their experience. The launch of Dance Active service is yet another step by us to enhance our value added services (VAS) portfolio and cater to a wider audience set. Having received very positive response from our earlier active services, we take immense pleasure in announcing the launch of this service which will offer an opportunity to the subscribers to learn and indulge in the magic of dance simply through their television screens”

    Commenting on the launch of Dance Active, Mr. Sukhpreet Singh, Senior Vice President, DishTV said “Dish TV is the largest platform which enables subscribers to go beyond entertainment and actively pursue their passions. DishTV’s partnership with ‘Dance with Madhuri’ provides a fascinating opportunity for subscribers to learn from and match their steps with some of the best choreographers in the country. We are happy to have collaborated with Ms. Madhuri Dixit and her magnificent team as Madhuri Dixit is a renowned personality of Bollywood and an iconic dancer in India.”

    Commenting on Dance with Madhuri’s association with DishTV’s Dance Active Service, Madhuri Dixit said, “Our vision for ‘Dance with Madhuri’ is to take the passion of dance to everyone and we believe our collaboration with Dish TV will ensure that millions of people can now learn how to dance right in their living rooms. We put in a lot of effort to create an amazing team of choreographers who help us bring this vision to life. So excited to launch this service!”

    Dance Active will be available on Channel No. 454 at an attractive price of just Rs.45 (All inclusive). The service will be available for free preview from 14th Nov’17- 28th Nov’17. Valued subscribers of DishTV can avail Dance Active service by a simple missed call on 18002700214 from registered telephone number.

  • Veecon Media acquires Reliance Big TV

    Veecon Media acquires Reliance Big TV

    NEW DELHI: Delhi-based Veecon Media and Television Ltd  (Veecon Media) has bought out Reliance  Communications Ltd’s (RCom’s) entire stake in its subsidiary Reliance Big TV Ltd (RBTV). According to a release on the BSE website, RCom has entered into a binding memorandum of understanding with Veecon Media to sell RBTV, which provides direct-to-home (DTH) services called Big TV, across India.  

    As per the terms of the transaction, the buyer will acquire the entire shareholding of RBTV on an ‘as-is where-is’ basis along with all existing trade and contingent liabilities. Veecon Media has the following professionals listed as directors of the company: Jaswant Kumar Srivastava, Lalit Kumar Srivastava, and Rohit Roha. It operates spiritual channel Kaatyayani TV and a 24-hour news network.

    Big TV’s existing DTH license will be renewed with the submission of the required bank guarantees with the ministry of information and broadcasting  by Veecon Media.

    The acquisition ensures that RBTV’s 1.2 million customers continue to receive services uninterrupted and the continuity of employment for the company’s 500 employees.

    The transaction will help reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCom.

    The exit from the DTH business is in consonance with the RCom’s stated objective to focus on B2B businesses.

  • Airtel Digital TV revenues, op profits rise in Q2 FY 2018

    Airtel Digital TV revenues, op profits rise in Q2 FY 2018

    BENGALURU: Airtel Digital TV services (Airtel DTH), the DTH segment of Indian telecom major Bharti Airtel Limited (Airtel), saw revenue grow 10 percent for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter (Q2-17, year ago quarter). The segment’s EBIDTA for Q2-18 increased 16 percent as compared to the year ago quarter (y-o-y).  Over time, Airtel DTH segment’s contribution to Airtel India revenue has grown to about 6 percent.

    Airtel DTH revenue in the current quarter increased to Rs 9,639 million from Rs 8,545 million, while EBIDTA increased to Rs 3,517 million in Q2-18 from Rs 3,030 million. EBIT increased by a massive 76 percent y-o-y to Rs 1,230 million from Rs 699 million. The company’s capex investments to Airtel DTH in Q2-18 increased 26 percent y-o-y to Rs 3,191 million from Rs 2,541 million, while cumulative investments in the segment increased 9 percent to Rs 75,435 million from Rs 69,453 million.

    Airtel DTH subscriber matrices

    Airtel DTH subscriber base grew by 207,000 to 13.521 million in Q2-18 from 13.314 million in the immediate trailing quarter (Q1-18). In Q2-17, Airtel DTH had a subscriber base of 12.405 million. Average revenue per user (ARPU) in Q2-18 increased to Rs 233 in Q2-18 from Rs 228 in Q1-18 and Rs 232 in Q2-18. The segment had a higher customer churn in  the current quarter at 1.4 percent as compared to 0.9 percent in the immediate trailing quarter and 0.9 percent in the corresponding year ago quarter.

    Overall, Airtel revenues for Q2-18 at Rs 246,520 million declined by 11 percent y-o-y primarily from Rs 246,520 million. Airtel India revenues declined 14.3 percent y-o-y to Rs 168,183 million  from Rs 196,149 led by mobile drop of 16.8 percent y-o-y. The company says that the mobile market continues to experience value erosion and financial stress led by competitive pressures.

    Mobile data traffic has grown fourfold to 784 billion MB in the quarter as compared to 178 billion MB in the corresponding quarter of last year. Mobile broadband customers increased by 33.6 percent to 55.2 million from 41.3 million in the corresponding quarter of last year.

    Airtel’s profit after tax in Q2-18 declined to less than half at Rs 12,990 million from Rs 27,350 million in the corresponding year ago quarter. Net income declined to less than a fourth in the current quarter at Rs 3,430 million from Rs 14,610 million in Q2-17.

    Airtel MD and CEO India & South Asia Gopal Vittal said, “The financial stress in the industry continues due to double digit revenue decline and will be further accentuated by the reduction in IUC rates in the next quarter. This will eventually force operator consolidation and exits as we have witnessed in the recent past. Airtel remains committed to its goal of increasing revenue market share in this competitive environment by providing superior customer experience and strategically investing behind building more data capacities.”