Category: DTH

Demonetisation hits Dish TV numbers for Q3-17

BENGALURU: Indian direct to home (DTH) company Dish TV India Limited (Dish TV) has reported just 3.3 per cent increase in subscription revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter (quarter ended 31 December 2015, Q3-16). Total Income from operations (TIO) in the current quarter actually declined three per cent as compared to Q3-17.

Further, despite the sunset dates for DAS phases III and IV quickly approaching, the company could add just 220,000 subscribers (net additions) in the current quarter as compared t0 317,000 (net additions) in Q3-16. Dish TV says that it closed the current quarter with 1.53 crore net subscribers.

In its earnings release, Dish TV says that only 30 of its subscribers made payments by digital means until demonetisation day – 8 November 2016. CMD Jawahar Goel explained further, “Limited cash supply made people defer their DTH recharges by a few days or weeks depending on the urgency of other basic necessities. The impact was stronger in the second tier and below towns and cities as most of the economy in these areas runs on cash. Our subscription revenues during the quarter could have been higher by around 8 per cent in a non-adverse scenario. Lower growth eventually resulted in lower average revenues per user as well.”

The company says that the fiscal third quarter being the period of festivals is generally the largest contributor to new subscriber additions during the year. Demonetization however impacted Dish TV’s new subscriber additions also with the company recording an estimated 8-10 per cent lower subscriber adds during the quarter.

Goel said further, “Subscribers as well as trade partners were extended temporary credit facilities basis their past transactions pattern. Subscriber awareness drives to promote alternate methods of payment were run both on the ground and on screen in addition to various other initiatives. Looking at the brighter side of it, demonetization does promise an eventual less-cash dependent population that should use online payment interfaces over cash for DTH recharges. That’s going to be a boon for the DTH business.”

Goel is optimistic about the future. He said, “Though demonetization has led to an initial distress, it also will result in certain structural changes that are going to benefit the economy in the long run. As far as our business is concerned, the effect has already started coming in. As online payment transactions, credit cards and a less-cash society become buzz words today, we are happy to note an increase in our online transacting subscriber base from 30 percent to around 38 percent with around 22 digital wallets and the like being integrated with the company. Every online recharge transaction vis-à-vis EPRS based transaction implies savings on recharge commissions paid by us.”

Let us look at the numbers reported by Dish TV for Q3-17

As mentioned above, subscription revenue in the current quarter increased 3.3 percent to Rs 692.10 crore from Rs 669.90 crore. TIO declined 3 percent to Rs 747.98 crore from Rs 771.48 crore.

Profit after tax (PAT) declined to almost a third (declined 61.0 Percent) to Rs 26.68 crore (3.6 percent margin – of TIO) in Q3-17 from Rs 68.49 crore (8.9 percent margin) in Q3-16. EBIDTA in the current quarter declined 6 percent to Rs 249.51 crore (33.4 percent margin) from Rs 265.45 crore (34.4 percent margin).

Total Expenditure in Q3-17 increased 1.8 percent year-over-year (y-o-y) to Rs 664.04 crore from Rs 652.33 crore. Programming/content and other costs increased 6.2 percent y-o-y to Rs 220.10 crore in the current quarter from Rs 207.31 crore.

Employee Benefits Expense in the current quarter increased 25.2 percent to Rs 36.12 crore from Rs 28.85 crore. Other expenses in Q3-17 increased 9.7 percent y-o-y to Rs 118.09 crore from Rs 107.68 crore. Other operating costs declined 36.6 percent in the current quarter to Rs 66.82 crore from Rs 105.35 crore in the corresponding year ago quarter.

Finance costs in Q3-17 increased 8.3 percent to Rs 59.1 crore from Rs 54.46 crore in the corresponding year ago quarter.

Commenting on the results, Goel said, “We believe that the negative impact of demonetization is only temporary and that with a strong subscriber growth rate, tight control on costs, reasonably steady free cash flows and a healthy balance sheet we should deliver sustainable growth. The rollout of the Goods and Services Tax (GST), a hopefully favourable license fee regime and a revenue conscious cable industry should only add to the strengths of Dish TV going forward.”

Notes:The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

Also Read:

The growth of DTH in India

DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

DishTV expands its HD offering

Dish TV offers ‘Digishala’ to 15 million subs

January 31, 2017
Videocon d2h continues top and bottom line increase in Q3-17

BENGALURU: Continuing the trend is has set in the previous two quarters, Videocon d2h reported a profit after tax (PAT) for the quarter ended 31 December 2016 (Q3-17, current quarter). The DTH major reported PAT of Rs 21.77 crore (2.8 percent margin) for the current quarter. It had reported PAT of Rs 6.32 crore (0.8 percent margin) for Q2-17, and Rs 2.66 crore (0.3 percent margin) for Q1-16. For the corresponding year ago quarter (Q3-17), the company had reported a loss of Rs 22.05 crore.

Since the beginning of the current fiscal (1 April 2016 to 31 March 2017), Videocon d2h has started reporting numbers net of entertainment tax, hence like-to-like comparisons for Q3-17 and Q3-16 are not comparable. However, the company has mentioned a few adjusted matrices for ease of comparison in its investor presentation and release.

Videocon d2h reported revenue from operations came in at Rs 777 crore in Q3-17. It says that on a like to like basis, revenue from operations would have been up 14.2 percent year-on-year (y-o-y) at Rs 835 crore if the company was to compute its revenue from operations for Q3-17 under its former accounting treatment

The DTH major also reported 13.3 percent y-o-y growth in net subscriber numbers at 127.7 lakh for Q3-17 as compared to 112.70 lakh and a 2 percent quarter-over-quarter (q-o-q) growth from125.2 lakh. Monthly Average revenue per user (ARPU) in the current quarter came in lower at Rs 205 as compared to Rs 209 in the immediate trailing quarter.

Subscriber matrices

Subscriber acquisition cost (SAC) in Q2-17 was higher at Rs 1,924 as compared to Rs 1,869 in the immediate trailing quarter.

Subscriber monthly churn in the current quarter was lower at 0.87 percent as compared to 0.95 percent in Q2-17. In Q3-16, it was slightly lower at 0.73 percent.

DAS III and IV are sunshine periods for the television carriage industry. Activation revenues have been adding to the top lines and bottom lines of most of the players. Videocon d2h computed subscription and activation revenue in the current quarter was Rs 711.2 crore as compared to Rs 710.7 crore in the immediate trailing quarter.

Let us look at some of the other metrics reported by Videocon d2h

Adjusted EBIDTA grew 33.2 percent y-o-y to Rs 267 crore (35.4 percent margin) in Q3-17.

Content cost margin came in at 39.6 percent of revenue in Q3-17 s compared to content costs margin in Q2-17 of 38.7 percent.

Employee benefit expense in Q3-17 was 0.6 percent lower at Rs 30.21 crore as compared to Rs 30.41 crore in Q3-16 and 4.2 percent lower than Rs 31.5 crore in Q2-17.

Net finance cost in Q3-17 was lower at Rs 65.31 crore, in Q2-17 was Rs 71.7 crore; in Q3-16 net finance cost was Rs 71.74 crore.

Company speak

Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I am delighted to report that we have delivered a strong quarter, despite the moderation due to currency demonetisation, which temporarily affected consumer sentiments and consumption. Our adjusted EBITDA grew over 33% year on year, which clearly demonstrates the strength of our distribution and customer service network and above all our team’s strong execution. We are entering 2017 in a whole new mode and are excited about the business fundamentals and growth opportunities supported by our healthy balance sheet and growing free cash flows.”

Speaking on the results, Videocon d2h CEO Anil Khera said, “I am happy to share that the digitization process has kick started once again as the Delhi High Court cleared all stay orders and ordered switch off of analogue signals in Phase III digitization areas by January 31, 2017. We remain excited about the significant Phase IV digitization opportunity, the new deadline for which is March 31, 2017.”

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

Also Read:

Powered by Shemaroo & PTC, Videocon d2h adds two VAS services

The growth of DTH in India

DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

January 31, 2017
Videocon d2h continues top and bottom line increase in Q3-17

BENGALURU: Continuing the trend is has set in the previous two quarters, Videocon d2h reported a profit after tax (PAT) for the quarter ended 31 December 2016 (Q3-17, current quarter). The DTH major reported PAT of Rs 21.77 crore (2.8 percent margin) for the current quarter. It had reported PAT of Rs 6.32 crore (0.8 percent margin) for Q2-17, and Rs 2.66 crore (0.3 percent margin) for Q1-16. For the corresponding year ago quarter (Q3-17), the company had reported a loss of Rs 22.05 crore.

Since the beginning of the current fiscal (1 April 2016 to 31 March 2017), Videocon d2h has started reporting numbers net of entertainment tax, hence like-to-like comparisons for Q3-17 and Q3-16 are not comparable. However, the company has mentioned a few adjusted matrices for ease of comparison in its investor presentation and release.

Videocon d2h reported revenue from operations came in at Rs 777 crore in Q3-17. It says that on a like to like basis, revenue from operations would have been up 14.2 percent year-on-year (y-o-y) at Rs 835 crore if the company was to compute its revenue from operations for Q3-17 under its former accounting treatment

The DTH major also reported 13.3 percent y-o-y growth in net subscriber numbers at 127.7 lakh for Q3-17 as compared to 112.70 lakh and a 2 percent quarter-over-quarter (q-o-q) growth from125.2 lakh. Monthly Average revenue per user (ARPU) in the current quarter came in lower at Rs 205 as compared to Rs 209 in the immediate trailing quarter.

Subscriber matrices

Subscriber acquisition cost (SAC) in Q2-17 was higher at Rs 1,924 as compared to Rs 1,869 in the immediate trailing quarter.

Subscriber monthly churn in the current quarter was lower at 0.87 percent as compared to 0.95 percent in Q2-17. In Q3-16, it was slightly lower at 0.73 percent.

DAS III and IV are sunshine periods for the television carriage industry. Activation revenues have been adding to the top lines and bottom lines of most of the players. Videocon d2h computed subscription and activation revenue in the current quarter was Rs 711.2 crore as compared to Rs 710.7 crore in the immediate trailing quarter.

Let us look at some of the other metrics reported by Videocon d2h

Adjusted EBIDTA grew 33.2 percent y-o-y to Rs 267 crore (35.4 percent margin) in Q3-17.

Content cost margin came in at 39.6 percent of revenue in Q3-17 s compared to content costs margin in Q2-17 of 38.7 percent.

Employee benefit expense in Q3-17 was 0.6 percent lower at Rs 30.21 crore as compared to Rs 30.41 crore in Q3-16 and 4.2 percent lower than Rs 31.5 crore in Q2-17.

Net finance cost in Q3-17 was lower at Rs 65.31 crore, in Q2-17 was Rs 71.7 crore; in Q3-16 net finance cost was Rs 71.74 crore.

Company speak

Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I am delighted to report that we have delivered a strong quarter, despite the moderation due to currency demonetisation, which temporarily affected consumer sentiments and consumption. Our adjusted EBITDA grew over 33% year on year, which clearly demonstrates the strength of our distribution and customer service network and above all our team’s strong execution. We are entering 2017 in a whole new mode and are excited about the business fundamentals and growth opportunities supported by our healthy balance sheet and growing free cash flows.”

Speaking on the results, Videocon d2h CEO Anil Khera said, “I am happy to share that the digitization process has kick started once again as the Delhi High Court cleared all stay orders and ordered switch off of analogue signals in Phase III digitization areas by January 31, 2017. We remain excited about the significant Phase IV digitization opportunity, the new deadline for which is March 31, 2017.”

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

Also Read:

Powered by Shemaroo & PTC, Videocon d2h adds two VAS services

The growth of DTH in India

DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

January 31, 2017
Powered by Shemaroo & PTC, Videocon d2h adds two VAS services

MUMBAI: Videocon d2h, India’s fastest growing DTH player is going all round in addition of new channels and services every week. Videocon d2h has now added Punjabi VAS service – d2h Mauja on occasion of Lohri, this service is brought in association with Shemaroo and is now available on Ch No.770. With this addition, Videocon d2h offers 15 Punjabi channels & services.

Mauja is an ad free service that will boast of a rich Punjabi content like music, movies, sitcoms etc d2h Mauja, Punjabi Service will offer latest Punjabi movies, devotional songs, movie clips, latest Punjabi songs and much more. You can also watch super hit movies like Vaisakhi List, Ardaas, Once Upon a Time in Amritsar and Vaapsi among others. The service is powered by PTC and Shemaroo Entertainment Ltd.This channel will plug the gap as it will broadcast old classical Punjabi movies to the latest ones apart from the Music shows and Punjabi plays. Unlike any other services, d2h Mauja is the only platform that promises to offer its audience a handpicked Punjabi movie daily.

Videocon d2h has now added Gujarati VAS service – d2h Rangilu on occasion of Makar Sankranthi. D2h Rangilu is brought in association with Shemaroo and will be available on Ch No. 867. With this addition, Videocon d2h offers 11 Gujarati channels & services. d2h Rangilu is an ad free service that will cater to the Gujarati audience and offers plays (theatre) of their favourite stars like Siddharth Randeria, Ketaki Dave, Feroz Bhagat, Sanjay Goradia and many more. Also it brings whole new range of mash ups, jokes, suvichar and traditional stand up comedy among others.

Rangilu will boast of a rich Gujarati content like plays, films, suvichar, jokes, sitcoms etc. d2h Rangilu will cater to the Gujaratis settled across India who are missing the Gujarati culture. This channel will plug the gap as it will broadcast old classical Gujarati plays, films, Hasya Darbaar, comedy series, etc.

Videocon d2h executive director Saurabh Dhoot said, “The addition of this VAS channel strengthens our Punjabi and Gujarati content. With the digitization of TV viewing in rural markets, regional and local content is what we are now focusing on.” Videocon d2h CEO Anil Khera added, “We are providing a varied mix of channels and services catering to a much wider audience base.” Shemaroo director Hiren Gada, “We are glad to launch d2h Mauja and Rangilu on Videocon d2h.”

January 17, 2017
Powered by Shemaroo & PTC, Videocon d2h adds two VAS services

MUMBAI: Videocon d2h, India’s fastest growing DTH player is going all round in addition of new channels and services every week. Videocon d2h has now added Punjabi VAS service – d2h Mauja on occasion of Lohri, this service is brought in association with Shemaroo and is now available on Ch No.770. With this addition, Videocon d2h offers 15 Punjabi channels & services.

Mauja is an ad free service that will boast of a rich Punjabi content like music, movies, sitcoms etc d2h Mauja, Punjabi Service will offer latest Punjabi movies, devotional songs, movie clips, latest Punjabi songs and much more. You can also watch super hit movies like Vaisakhi List, Ardaas, Once Upon a Time in Amritsar and Vaapsi among others. The service is powered by PTC and Shemaroo Entertainment Ltd.This channel will plug the gap as it will broadcast old classical Punjabi movies to the latest ones apart from the Music shows and Punjabi plays. Unlike any other services, d2h Mauja is the only platform that promises to offer its audience a handpicked Punjabi movie daily.

Videocon d2h has now added Gujarati VAS service – d2h Rangilu on occasion of Makar Sankranthi. D2h Rangilu is brought in association with Shemaroo and will be available on Ch No. 867. With this addition, Videocon d2h offers 11 Gujarati channels & services. d2h Rangilu is an ad free service that will cater to the Gujarati audience and offers plays (theatre) of their favourite stars like Siddharth Randeria, Ketaki Dave, Feroz Bhagat, Sanjay Goradia and many more. Also it brings whole new range of mash ups, jokes, suvichar and traditional stand up comedy among others.

Rangilu will boast of a rich Gujarati content like plays, films, suvichar, jokes, sitcoms etc. d2h Rangilu will cater to the Gujaratis settled across India who are missing the Gujarati culture. This channel will plug the gap as it will broadcast old classical Gujarati plays, films, Hasya Darbaar, comedy series, etc.

Videocon d2h executive director Saurabh Dhoot said, “The addition of this VAS channel strengthens our Punjabi and Gujarati content. With the digitization of TV viewing in rural markets, regional and local content is what we are now focusing on.” Videocon d2h CEO Anil Khera added, “We are providing a varied mix of channels and services catering to a much wider audience base.” Shemaroo director Hiren Gada, “We are glad to launch d2h Mauja and Rangilu on Videocon d2h.”

January 17, 2017
Tata Sky offers top channels & services

MUMBAI: Tata Sky, one of India’s leading content distribution platform providing Pay TV and OTT services, has announced its offerings #MaxJingalala of 600 channels and services, which is the highest ever in the DTH sector.

Tata Sky today is a market leader in HD channels along with maximum number of Tamil, Telugu, Kannada, Malayalam, Marathi, Bengali, Oriya, Punjabi and Assamese channels on offer.

As of December 2016, Tata Sky is offering an unprecedented 76 HD (highest in the industry) and 483 SD channels. The bouquet of 31 value added services, 15 SD and HD movie platforms specials, 9 exclusive +1 channel feeds, have been a clear differentiator and a key focus area for the brand.

“Consumers in India consider the number of channels provided by an entertainment platform to be amongst the second biggest reason to make their purchase decisions. Tata Sky is leaving no stone unturned to offer the maximum number of channels and services to its subscribers. Hence offering Sabse Zyada Manoranjan catering to every member of the family is key to the Tata Sky offering,” said Tata Sky chief communications officer Malay Dikshit.

Throughout 2016, Tata Sky has pioneered in the Pay TV sector with offerings ranging from enabling internet browser application on the Set Top Box, introducing Kids Showcase, Bengali and Punjabi movies MAMI films, m-Visa payment option to first of its kind interactive services such as Comedy, Devotion, Music + and Gurus. The year also saw popular campaigns from Tata Sky; such as Pyaar Jingalala (13 series ad films), Das Saal Jingalala and Family Jingalala (starring Amitabh Bachchan).

Some of the other first-ever in the sector that Tata Sky has under its hat are the launch of 4k Set Top Box in India, Karaoke service on STB, unique interactive services Classroom and Smart manager and the World’s first Daily Recharge option.

January 6, 2017
Tata Sky offers top channels & services

MUMBAI: Tata Sky, one of India’s leading content distribution platform providing Pay TV and OTT services, has announced its offerings #MaxJingalala of 600 channels and services, which is the highest ever in the DTH sector.

Tata Sky today is a market leader in HD channels along with maximum number of Tamil, Telugu, Kannada, Malayalam, Marathi, Bengali, Oriya, Punjabi and Assamese channels on offer.

As of December 2016, Tata Sky is offering an unprecedented 76 HD (highest in the industry) and 483 SD channels. The bouquet of 31 value added services, 15 SD and HD movie platforms specials, 9 exclusive +1 channel feeds, have been a clear differentiator and a key focus area for the brand.

“Consumers in India consider the number of channels provided by an entertainment platform to be amongst the second biggest reason to make their purchase decisions. Tata Sky is leaving no stone unturned to offer the maximum number of channels and services to its subscribers. Hence offering Sabse Zyada Manoranjan catering to every member of the family is key to the Tata Sky offering,” said Tata Sky chief communications officer Malay Dikshit.

Throughout 2016, Tata Sky has pioneered in the Pay TV sector with offerings ranging from enabling internet browser application on the Set Top Box, introducing Kids Showcase, Bengali and Punjabi movies MAMI films, m-Visa payment option to first of its kind interactive services such as Comedy, Devotion, Music + and Gurus. The year also saw popular campaigns from Tata Sky; such as Pyaar Jingalala (13 series ad films), Das Saal Jingalala and Family Jingalala (starring Amitabh Bachchan).

Some of the other first-ever in the sector that Tata Sky has under its hat are the launch of 4k Set Top Box in India, Karaoke service on STB, unique interactive services Classroom and Smart manager and the World’s first Daily Recharge option.

January 6, 2017
Broadcasters can now bid for new Pak DTH licence auction

MUMBAI: The Lahore High Court has requested PEMRA, Pakistan’s broadcast regulatory body, to start the bidding process for direct-to-home (DTH) licences again, after it declared the recent auction void that must be reheld. PEMRA is considering challenging the order in the Supreme Court of Pakistan, local newspapers reported.

With the new order, broadcasters such as ARY and GEO will now be able to bid to operate DTH satellite TV services in the country.

Three direct-to-home (DTH) licences in Pakistan were on 23 November awarded for a total of PKR 14.694 billion (USD 140 million). The highest bid was raised by Mag Entertainment for PKR 4.91 billion, respectively followed by M/s. Shahzad Sky for PKR 4.90 billion and M/s. Star Time for Rs 4.89 billion. PEMRA had issued non-exclusive licences for 15 years to the three companies.

PEMRA chairman Absar Alam had said the DTH service would not end the cable operators’ business, but would compel them to invest in technology and distribution systems.
The auction barred broadcasters from bidding owing to what was believed to be a conflict of interest. The court however said the restriction was based on an assumption that any vertical integration between broadcast media and distribution services would result in undue concentration of ownership.

Pakistani DTH services would have countered the sale of illegal Indian DTH services in Pakistan, which leads to annual transfer of between US$ 200 million to US$ 350 million to India on account of subscription fee.

Also Read: Pak DTH: Mag, Shahzad & Star Time to start ops in a year

Pakistan gets tough on Indian DTH & content

Pak DTH licence bidding stayed

January 4, 2017
Broadcasters can now bid for new Pak DTH licence auction

MUMBAI: The Lahore High Court has requested PEMRA, Pakistan’s broadcast regulatory body, to start the bidding process for direct-to-home (DTH) licences again, after it declared the recent auction void that must be reheld. PEMRA is considering challenging the order in the Supreme Court of Pakistan, local newspapers reported.

With the new order, broadcasters such as ARY and GEO will now be able to bid to operate DTH satellite TV services in the country.

Three direct-to-home (DTH) licences in Pakistan were on 23 November awarded for a total of PKR 14.694 billion (USD 140 million). The highest bid was raised by Mag Entertainment for PKR 4.91 billion, respectively followed by M/s. Shahzad Sky for PKR 4.90 billion and M/s. Star Time for Rs 4.89 billion. PEMRA had issued non-exclusive licences for 15 years to the three companies.

PEMRA chairman Absar Alam had said the DTH service would not end the cable operators’ business, but would compel them to invest in technology and distribution systems.
The auction barred broadcasters from bidding owing to what was believed to be a conflict of interest. The court however said the restriction was based on an assumption that any vertical integration between broadcast media and distribution services would result in undue concentration of ownership.

Pakistani DTH services would have countered the sale of illegal Indian DTH services in Pakistan, which leads to annual transfer of between US$ 200 million to US$ 350 million to India on account of subscription fee.

Also Read: Pak DTH: Mag, Shahzad & Star Time to start ops in a year

Pakistan gets tough on Indian DTH & content

Pak DTH licence bidding stayed

January 4, 2017
DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

BENGALURU: The DTH industry in India has added about 14 lakh (1.4 million) active subscribers in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the immediate trailing quarter (Q1-17). The number of active DTH subscribers in the country increased to 6.19 crore (61.9 million) as compared to 6.05 crore (60.5 million) in Q1-7. TRAI had reported 4.05 crore (40.5 million) active subscribers for the corresponding year ago quarter Q2-16. . It may be noted that TRAI (Telecom Regulatory Authority Regulator has been reportingthe net active subscriber base included temporarily suspended subscribers that have been inactive for not more than 120 dayssince Q3-16 (quarter ended 31 December 2015).

The growth seems to have slowed in Q2-17 down despite the extended sunset date for DAS IV nearing. In the previous quarter, the industry had added 19.7 lakh (1.97 million), 25.5 lakh (2.55 million) in the quarter ended 31 March 2016 (Q4-16). Further, the industry has witnessed a faster growth of inactive subscribers as compared to active subscribers in Q2-17. Total number of registered subscribers grew 2.9 percent in the current quarter, while active subscribers grew by just 2.3 percent. In Q1-17 TRAI had reported 9.153 crore or 91.53 million registered subscribers, which grew to 9.416 crore or 94.16 million or a growth of 26.3 lakh (2.63 million) registered subscribers. As mentioned above active subscribers grew by just 14 lakh or 1.4 million in the same period.

Of the six private players in the Indian DTH ecosystem, three are publically listed and their numbers are available in the public domain – They are in alphabetical order: Airtel Digital TV Services or Airtel DTH which is a small segment/division of Indian telecom major Bharti Airtel Limited; Dish TV, the largest DTH player in the country in terms of number of subscribers; and Videocon d2h. These three have about two thirds of market share of the DTH universe in India. Of the other three players, Tata Sky is a major player and should have a market share about equal to Airtel DTH or Videocon d2h (about 20 percent). The other players – Reliance DTH and Sun Direct have a combined market share between 13 to 15 percent in terms of subscribers. It may be noted that at present probably the largest DTH player in India is the government’s FreeDish, but since it is a free service, no subscriber data is available even with PrasarBharati.

Please refer to Fig A below for DTH subscriber growth.

For Q2-17, the growth of the three major players was even slower than the industry – their combined subscriber base grew just 1.9 percent quarter-over-quarter (q-o-q) by just 7.45 lakh (0.625 million) to 400.25 lakh (40.025 million) from 392.8 lakh (39.28 million) in the immediate trailing quarter.

Fig B below indicates the approximate market share in terms of subscribers of the six private DTH players in the country.

Let us see how they performed during the current quarter (Q2-17)

Airtel Digital TV Services or Airtel DTH

Airtel DTH reported 21.9 percent year-over-year (y-o-y) increase in operating revenues to RsRs 854.5 crore in Q2-17 as compared to Rs 706.8 crore in Q2-16. The segment’s operating profit (EBIT) more than quadrupled y-o-y to Rs 69.8 crore from Rs 17 crore, but declined 42.7 percent q-o-q from Rs 121.9 crore.

Airtel’s DTH segment added 18.29 lakh subscribers between Q2-16 and Q2-17, or a 17.3 percent y-o-y increase. The company says that this is the highest growth in percentage terms over seventeen quarters. It had 124.05 lakh subscribers as on 30 September 2016. Q-o-q, the segment witnessed a 2.1 percent growth (2.56 lakh adds) in subscribers from 121.49 lakh in Q1-17.

ARPU in Q2-17 increased to Rs 232 from Rs 224 in the corresponding year ago quarter, but declined marginally (by Re 1) from Rs 233 in the immediate trailing quarter.

Dish TV

Three segments contribute to Dish TV’s numbers – DTH; Infra Support Services; and ‘Others’.

Dish TV’s DTH segment revenue in Q2-17 declined 14.2 percent to Rs 509.55 crore from Rs 594.16 crore in Q2-16. The segment reported 15.5 percent lower operating profit in the current quarter at Rs 86.43 crore as compared to Rs 102.24 crore in the corresponding year ago quarter.

The company reported addition of 2.59 lakh net subscribers for Q2-17. It closed the quarter with 151 lakh subscribers. Average revenue per user (ARPU) for Q2-17 was Rs 162 in the current quarter versus Rs 161 in the corresponding year ago quarter. It may be noted that as of this fiscal, Dish TV has been reporting ARPU number net of service tax and hence comparison with the other players is inappropriate.

Dish TV reported 11.9 percent higher y-o-y subscription revenue of Rs 728.8 crore for Q2-17, as compared to Rs 651.4 crore. Operating revenue in the current quarter increased 9.6 percent y-o-y to Rs 779.6 crore from Rs 711.2 crore in the corresponding quarter of the previous year.

Dish TV reported PAT of Rs. 70.1 crore in Q2-17, down 19.4 percent as compared to Rs 87 crore in Q2-16. EBIDTA in the current quarter increased 3.6 percent to Rs 264.2 crore from Rs 255 crore in Q2-16.

Videocon d2h

Videocon d2h reported 12.5 percent y-o-y growth in total revenue from operations for Q2-17 at Rs 776.16 crore as compared to Rs 690.08 crore and a 1.7 percent q-o-q growth from Rs 763.25 crore.

Videocon d2h reported PAT of Rs 6.32 crore (0.8 percent margin) Q2-17, current. For the corresponding year ago quarter (Q2-17), the company had reported a loss of Rs 24.59 crore while for the immediate trailing quarter (Q1-17) the company had reported profit of Rs 2.66 crore (0.3 percent margin).

The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber numbers at 125.2 lakh for Q2-17 as compared to 108.4 lakh and a 1.9 percent quarter-over-quarter (q-o-q) growth from122.9 lakh. Monthly Average revenue per user (ARPU) in the current quarter increased to Rs 209 from Rs 201 in Q2-16 but declined by Rs 2 from Rs 211 in the immediate trailing quarter.

January 4, 2017