ITV

Tag: ARPU

  • Airtel Digital TV sub base expands, even as ARPUs dip

    MUMBAI: Q1 2018 ended 30 June 2017 has been a bit of a mixed bag for the Sunil Mittal headed Bharati Airtel’s DTH biz – Airtel Digital TV. Its subscriber base expanded by nine per cent to 13.3 million as compared to 12.14 million in Q1 FY 2017 ended 30 June 2016. Net customer additions were hence around 499,000. The average revenue for the quarter however dropped to Rs 228 as compared to Rs 233 in the corresponding quarter last year.

    Revenues from the DTH segment grew at a slower pace of seven per cent in Q1 FY 2018 to touch Rs 897.4 crore (Rs 836.9 crore in Q1 FY 2017). EBIDTA in the latest quarter grew 10 per cent over the previous corresponding period to Rs 330 crore, even as its capex went up 31 per cent to Rs 266.1 crore (Rs 203 crore). Its operating free cash flow was down 35 per cent from Rs 98.1 crore to Rs 63.9 crore.

    Bharati Airtel’s cumulative investment to date in Airtel Digital TV has spurted to Rs 7225.3 crore as compared to Rs 6693.6 crore in the previous corresponding quarter.

    Cumulatively, the DTH service is contributing five per cent revenues to the telecom behemoth’s top line even as investments in the segment are at three per cent.

    Says an industry observer: “Airtel Digital TV is among the three to four players who are offering a world class service at very reasonable prices to consumers. The quality of customers who may have signed on in the last quarter could be coming in from Phase III and phase IV areas of cable TV digitization (where customers have a lower propensity to pay for the premium services) or it could be that the competition is forcing it to cut its prices. But overall it has done reasonably well in a difficult year. “

    Airtel Digital TV offers both standard and high definition (HD) digital TV services with 3D capabilities and Dolby surround sound. It offers a total of 590 channels including 67 HD channels, five international channels and four interactive services.

  • Dish TV, Hathway & Den amongst top 10 global Pay TV platforms

    MUMBAI: Indian companies — Dish TV, Hathway & Den Networks are amongst the top 10 global Pay TV platforms, according to the Global Pay TV Operator Databook from Digital TV Research. For the top 10 operators, the global TV revenue share was 55 per cent in 2016, with the leading 50 operators taking three-quarters of the total.

    Despite high number of subscribers but low ARPUs, Asia Pacific’s top operators are much less prominent in the PPV and subscription rankings with respect to revenue. This is where the US companies were leading – with six among the top 10 in 2016.

    Subscribers of Pay-TV for 522 operators reached a significant number — 839 million in 2016 (that is, 87 per cent of the 959 million global subscribers).

    In all, 50 leading operators accounted for two-thirds of the global Pay-TV subscribers by end-2016, Advanced Television reported. At that time, 10 million paying subscribers were using the services of 15 operators, according to the Databook.

    Globally, China Radio & TV is the largest pay-TV operator with a huge gap. Chinese government policy to consolidate cable TV translated as China Radio becoming the globe’s largest by 2016 — accumulating 227 million subs.

    Digital TV Research principal analyst Simon Murray said that India and China’s dominance of the top pay-TV operator rankings had been increasing, as US operators lost subs and the two nations subscriber bases swelled.

    PPV and subs revenues for the 522 operators were around Rs 11.9 trillion (US$185 billion) in 2016. Around 30 pay-TV operators earned more than Rs 64.5 billion (US$1 billion) revenue.

    MUMBAI: Indian companies — Dish TV, Hathway & Den Networks are amongst the top 10 global Pay TV platforms, according to the Global Pay TV Operator Databook from Digital TV Research. For the top 10 operators, the global TV revenue share was 55 per cent in 2016, with the leading 50 operators taking three-quarters of the total.

    Despite high number of subscribers but low ARPUs, Asia Pacific’s top operators are much less prominent in the PPV and subscription rankings with respect to revenue. This is where the US companies were leading – with six among the top 10 in 2016.

    Subscribers of Pay-TV for 522 operators reached a significant number — 839 million in 2016 (that is, 87 per cent of the 959 million global subscribers).

    In all, 50 leading operators accounted for two-thirds of the global Pay-TV subscribers by end-2016, Advanced Television reported. At that time, 10 million paying subscribers were using the services of 15 operators, according to the Databook.

    Globally, China Radio & TV is the largest pay-TV operator with a huge gap. Chinese government policy to consolidate cable TV translated as China Radio becoming the globe’s largest by 2016 — accumulating 227 million subs.

    Digital TV Research principal analyst Simon Murray said that India and China’s dominance of the top pay-TV operator rankings had been increasing, as US operators lost subs and the two nations subscriber bases swelled.

    PPV and subs revenues for the 522 operators were around Rs 11.9 trillion (US$185 billion) in 2016. Around 30 pay-TV operators earned more than Rs 64.5 billion (US$1 billion) revenue.

    Top 10 operators by subscribers (000)
    Ranking Operator Country 2016
    1 China Radio & TV (total) China 226,535
    2 China Telecom (IPTV) China 52,038
    3 BesTV (IPTV) China 26,019
    4 AT&T (total) USA 25,065
    5 Comcast (total) USA 22,508
    6 Charter merged (total cable) USA 16,836
    7 Dish TV (satellite) India 13,582
    8 Hathway (total) India 13,300
    9 Den Networks (total) India 13,000
    10 DISH Network (satellite) USA 12,521
    Source: Digital TV Research

  • TRAI tariff order’s impact on the industry

    MUMBAI: How will Trai’s Telecommunication (Broadcasting and Cable) Services (Eight) (Addressable systems) Tariff Order, 2017, impact the industry and listed television eco-system companies?

    Leading institutional broker Kotak Institutional Equities (KIE) believes that the implementation of would enhance the bargaining power of distributors versus broadcasters, at the margin. KIE contends that while it is difficult to factor in all permutations and combinations and quantify the impact, Dish TV would most likely benefit. The impact on Zee would be negligible, if any, given the strength of its bouquet. Sun could potentially gain, but its upside is contingent on digitization in TN.

    KIE believes that flexibility to consumers will not reduce industry’s subscription revenue pool because there is a provision of access fee of up to Rs 130/month (excluding taxes). It says that even if a household subscribes for 10 popular pay channels on a-la-carte basis, it may result in subscription fee of more than Rs 100 (excluding taxes). It is unlikely that value subscribers (base pack/ low-ARPU subscribers) would be able to optimize subscription spends. If at all, they may receive less content for the same price going forward. However, there is room for premium subscribers (HD, multiple TVs) paying more than Rs 500/month per STB to optimize its subscription spends especially in case of nuclear families in urban markets..

    “We expect distributors to price and package channels such that consumers continue to find bouquet appealing. We also believe industry will not encourage or promote a-la-carte buying: (1) LCOs would likely discourage a-la-carte buying, (2) difficulty/hassle in opting for a-la-carte (through SMSes or call centres) will act as a deterrent,” says a KIE report.

    The regulation could possibly reduce scale led advantages of distributors. The permissible discounts would likely be on penetration milestones (percentage penetration as against absolute scale). Thus, the scale-led advantage of larger distributors can moderate. However, it will be difficult to track and monitor placement and marketing deals which may be used as an avenue to pass on scale-related benefits.

    KIE believes that it is likely that strong players will become stronger and weak players will become weaker. There is a high possibility that low-ARPU subscribers may get less content for the same price whereas premium subscribers may be able to optimize their subscription spends because of uniform pricing across urban markets and rural markets notwithstanding difference in purchasing power.

    Also, standalone channels and small broadcasters may be forced to pay higher carriage to maintain reach (at present DTH garners negligible carriage; post implementation DTH may demand higher carriage). Some channels may not be able to absorb the increase in costs. Small distributors, who do not have wherewithal for technological changes, may find it difficult.

    On upselling and HD push, the KIE paper says, “Access fee under the new regulation would contribute meaningfully to distributors’ revenue stream. Additionally, DTH should also see a sharp increase in carriage revenues. Given this, it has to be seen if the distributor ecosystem remains as focused on upselling and pushing HD. We believe the incentive for them to upsell is lower under the new regulation.”

    KIE is unsure if the regulations would weigh on long-term ARPU growth. Intuitively, more flexibility to choose content can make optimization of subscription budget easier at household level. It contends that barring top channels, price of most pay channels would be negligible and many channels would convert to FTA. Monetisation of niche channels may be difficult at the margin.

    The broking house feels that implementation of regulation would force cable to push package tiering and raise cable tariffs in line with DTH provided that LCOs align with it and broadcasters do not make any payments to cable other than prescribed by the regulation. The time lag between technical implementation of digitization and monetization is 1-2 years. In fact even after 3-4 years, Cable tariffs and MSOs ARPU in phase I-II markets lag expectations.

  • Dish Network rev flat in ’16 despite declining pay-TV subs

    BENGALURU:  The fourth largest US pay-TV player Dish Network Corporation (DNC) reported almost flat revenues for the year ended 31 December 2016 (FY-16, current year, quarter ended 31 December 2016 – Q4-16, current quarter) as compared to the previous fiscal. Though Dish reported 2.164 million gross subscriber additions in FY-16, its net subscriber base declined by 392,000. The company closed the fourth quarter with 13.671 million pay-TV subscribers, compared to 13.897 million pay-TV subscribers in the fourth quarter of 2015. Last year the company lost approximately 81,000 pay-TV subscribers.

    Dish reported revenues of $15,094.56 million in FY-16 as compared to $15,069.90 million in the previous year. Subscriber related revenue increased to $15,033.94 million in the current year from $14,953.60 million in the previous year.

    Net income attributable to Dish in FY-16 was almost double (94.1 percent more) at $1,449.85 as compared to $749.09 million in FY-15. Consequently earnings per share also almost doubled (up 93.8 percent) in FY-16 at $3.12 as compared to $1.61 in the previous year.

    Pay-TV average monthly subscriber churn for 2016 was 1.83 percent compared to 1.71 percent in 2015.Dish reported higher pay-TV ARPU in the current year at $88.66 as compared to $86.79 in the previous year.

    Subscriber acquisition costs totalled $1.471 billion for FY-16, a decrease of $212 million or 12.6 percent compared to the same period in 2015. pay-TV SAC was $643 during FY-16 compared to $723 during the same period in 2015, a decrease of $80 or 11.1 percent. The company says  that this change was primarily attributable to an increase in Sling branded pay-TV subscriber activations and a decrease in hardware costs per activation, partially offset by an increase in advertising costs per activation. Subscriber acquisition costs for Sling branded pay-TV subscribers are significantly lower than those for DISH branded pay-TV subscribers, and therefore, the increase in Sling branded pay-TV subscriber activations during 2016 had a positive impact on pay-TV SAC.

    Dish includes all of its Dish and Sling branded subscribers in the company’s total pay-TV metrics, including in the pay-TV subscriber, pay-TV ARPU and pay-TV churn rate numbers. The company markets its Sling TV services primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. Sling TV services require an Internet connection and are available on multiple streaming-capable devices including TVs, tablets, computers, game consoles and smart phones.

    In addition, Dish bundles broadband and telephone services with its Dish branded pay-TV services. As of December 31, 2016, it had 0.580 million broadband subscribers in the United States. Dish lost approximately 43,000 net broadband subscribers during the FY-16 compared to the addition of approximately 46,000 net broadband subscribers during the same period in 2015. The company says that the net broadband subscriber losses during FY-16 primarily resulted from lower gross new broadband subscriber activations and a higher number of customer disconnects.

    Also Read:

    DISH buys EchoStar’s DBS & OTT assets; gives control over Sling TV customer experience

  • Analysis: Ortel Q3 numbers take a hit

    BENGALURU: Despite a 6.5 percent year-over-year (y-o-y) increase in Total Income from Operations (TIO), the Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported a net loss for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to a profit after tax (PAT) reported for the corresponding quarter of the previous year (Q3-16). The company reported a net loss of Rs 2.78 crore in Q3-17 as compared to a profit after tax (PAT) Rs 3.89 crore in Q3-16 and a PAT of Rs 2.54 crore in the immediate trailing quarter Q2-17.

    The company has been hit by various factors, two of the four being demonitisation and increased competition in broadband internet services. Though Rath did not name the competition during a telecom with www.indiantelevision.com, the first moniker that comes to mind when one speaks of competition in broadband in India is Reliance Jio. The company’s Q3-17 numbers indicate that it has lost 8.4 percent or 6,679 broadband subscribers and its broadband ARPU had declined quarter-over-quarter (q-o-q) to Rs 394 from Rs 406 in the immediate trailing quarter. Ortel closed Q3-17 with 72,503 subscribers as compared to 79,182 in Q2-17 and 67,709 subscribers at the end ofQ3-16.

    The third reason was the steep decline in Ortel’s infrastructure and leasing business. Another reason for the loss was a higher provision for bad debts (an expense head) in Q3-17 – this was Rs 8.33 crore in Q3-17 as compared to Rs 3.76 crore for the year ago quarter and Rs 6.61 crore in the immediate trailing quarter.

    However, Rath informed that his company’s broadband subscriber base has already shown positive growth in January 2017 and that the improved broadband results for the final quarter should improve. Rath also revealed data consumption per user has gone up in Q3-17 by about 1 GB as compared to the previous quarter because of more packages being made available and lowering of data prices.

    Since it went public, Ortel has generally been reporting profits, more so over the past six-seven quarters, and TRath said that he expected the situation to normalise and the return of net profits within a couple of quarters.

    Company speak

    In the company’s earnings release, Rath said, “Our performance during the quarter was impacted due to a combination of factors which weakened some of our key operating parameters. In spite of this, we have demonstrated a healthy growth in revenues from both Cable TV and Broadband Business on a y-o-y basis both for Q3 and 9M-17. I am also happy to inform that our Business outside Odisha which turned
    EBIDTA positive last quarter has remained so during this quarter.

    Overall, we have demonstrated that a strong B2C focused last mile business model in our core market can be profitable and remain confident of replicating the same across newer markets. We continue to believe that this is a sustainable model as we can capture the entire revenue stream across the value chain.”

    Cable Subscription numbers (revenue generating units – RGUs’), ARPU

    During the current quarter, the total subscribers (both cable and television) stood at 738,963 subscribers. Net addition in Q3-17 stood at 13,256.

    Analog and Digital TV ARPU stood as Rs. 150 per month and Rs. 152 per month for Q3-17 and Q3-16 respectively. For the immediate trailing quarter, ARPU was Rs 153.

    Broadband numbers have been mentioned above.

    Let us look at the other numbers reported by Ortel

    Cable TV revenue in Q3-17 increased 25 percent y-o-y to Rs 40 crore from Rs 32 crore in Q3-16, but declined 4.8 percent q-o-q from Rs 42 crore.

    Cable TV Activation fees or connection fees in Q3-17 were more than 2.6 times at Rs 2.5 crore as compared to Rs 1 crore in Q3-16, but declined 40.8 percent q-o-q from Rs 4.2 crore.

    Cable TV subscription revenue in Q3-17 increased 41.1 percent y-o-y to Rs 30 crore from Rs 21.2 crore in Q3-16 and increased 1 percent q-o-q from Rs 29.7 crore. Channel carriage fees in the current quarter declined 23.2 percent y-o-y to Rs 7.5 crore from Rs 9.8 crore and declined 7.4 percent q-o-q from Rs 8.1 crore.

    Broadband services revenue in Q3-17 increased 5.7 percent to Rs 8.7 crore from Rs 8.3 crore in Q3-16 but declined 12.6 percent q-o-q from Rs 10 crore. Internet connection fees in Q3-17 declined 60.5 percent y-o-y to Rs 0.2 crore from Rs 0.6 crore and declined 50.8 percent q-o-q from Rs 0.5 crore. Internet subscription fees in Q3-17 increased 10.5 percent y-o-y to Rs 8.5 crore from Rs 7.7 crore but declined 10.6 percent q-o-q from Rs 9.5 crore.

    Total expenses (TE) in Q3-17 increased 19.4 percent y-o-y to Rs 47.48 crore as compared to Rs 39.78 crore, and increased 7.3 percent q-o-q from Rs 44.37 crore.

    Programming cost in Q3-17 were almost flat (increased 0.6) percent y-o-y at Rs. 9.18 crore as compared to Rs 9.13 crore and increased 6.3 percent from Rs 8.64 crore. Employee expenses during the current quarter stood 9.7 percent higher y-o-y at Rs. 6.32 crore as compared to Rs 5.76 crore, and increased 4.9 percent q-o-q from Rs 6.03 crore.

    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.

  • Hathway revenue and operating profit up in third quarter

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 25.5 per cent growth in Total Income from operations (TIO) and 46 percent growth in operating profits (EBIDTA) for the quarter ended 31 December 2016 (Q3-17, current quarter). The company reported TIO of Rs 337.6 crore in Q3-17 as compared to Rs 281.2 crore in the corresponding quarter of the previous year.

    The company’s EBDITA (earnings before depreciation, interest, taxes and amortisation or operating profit) including other income in the current quarter was Rs 66.6 crore (20 percent EBIDTA margin) and was Rs 45.4 crore (16 percent EBIDTA margin) in Q3-16. The company’s loss as per IND-AS in the current quarter increased to Rs 44.4 crore from a loss of Rs 41.2 crore in Q3-16.

    Hathway reported high growth in Cable subscription revenue, Activation fees and Broadband revenue, while placement revenue declined. The company’s broadband segment has been performing very well, as a matter of fact, among the national level MSOs’ Hathway has the highest subscription and revenue numbers among all of them. Like in the immediate trailing quarter, within Hathway, in Q3-17, Broadband subscription had the highest contribution to revenue, even more than Cable TV subscription revenue

    Hathway’s broadband subscriber base increased by 0.4 lakh in Q3-17 to 8.6 lakh from 8.2 lakh in the immediate trailing quarter. Consolidated broadband revenue in the current quarter as per IND AS increased 62 percent to Rs 127.8 crore from Rs 78.7 crore in the previous year. Consolidated Broadband ARPU in Q3-17 was Rs 654 as compared to Rs 631 in Q3-16 and Rs 643 in the immediate trailing quarter.

    Reported CATV subscription revenue as per IND AS in the current quarter increased 17 percent to Rs 114.1 crore from Rs 97.7crore in Q3-16 Hathway says that it has deployed 4 lakh STBs at a consolidated level. Standalone CATV ARPU in DAS Phase I was Rs 105, in Phase II areas was Rs 95. ARPU from phase III areas was Rs 45.

    Placement revenue as per IND AS in the current quarter declined 14 percent to Rs 70.4 crore from Rs 82.2 crore in Q3-16.

    Activation revenue as per IND AS increased 49 percent y-o-y in Q3-17 to Rs 21 crore from Rs 115 crore in Q3-16.

    Other revenue as per IND AS declined 43 percent in Q3-17 to Rs 4.3 crore from Rs 7.6 in Q3-16.

    Hathway’s Standalone Total Expenditure (without depreciation and amortization) in Q3-17 increased 14 percent to Rs 27.52 crore from Rs 239.4 crore in the previous year.

    Standalone Pay channel cost in the current quarter increased 10 percent to Rs 104.3 crore from Rs 94.5 crore in Q3-16. Standalone Employee Benefit expense in Q3-17 increased 19 percent y-o-y to Rs 23.3 crore from Rs 19.6 crore.

    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.

  • Videocon d2h continues top and bottom line increase in Q3-17

    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

  • Videocon d2h continues top and bottom line increase in Q3-17

    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

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.