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Tag: Dish TV-Videocon d2h merger

  • Despite lower ARPU, Videocon d2h posts higher Q3 profit

    Despite lower ARPU, Videocon d2h posts higher Q3 profit

    BENGALURU: The Saurabh Dhoot-led Indian DTH player Videocon d2h reported profit after tax (PAT) at Rs 30.85 crore for the quarter ended 31 December 2017 (Q3 2018, quarter under review). The company had reported PAT of Rs 16.78 crore for the immediate trailing quarter Q2 2018 and PAT of Rs 21.77 crore for the corresponding year ago quarter Q3 2017. Adjusted EBITDA increased 9 per cent yoy in Q3 2018 to Rs 291.41 crore from Rs 267.24 crore. Adjusted EBITDA less capex increased 62.9 per cent yoy to Rs 188.50 crore during the quarter under review as compared to Rs 115.70 crore.

    Videocon d2h revenue from operations increased 7.2 per cent yoy during the quarter under review to Rs 833.6 crore from Rs 777.39 crore. Subscription and activation revenue increased 7.3 per cent yoy to Rs 763 crore in Q3 2018 from Rs 711.20 crore.

    Subscriber matrices

    The company’s subscriber base increased by 1.6 lakh  (1 crore = 10 crore = 100 lakh) during Q3 2018 to 134.1 lakh from 132.5 lakh in the immediate trailing quarter Q2 2018. The company had a subscriber base of 127.7 lakh in Q3 2017. Videocon d2h reported a quarterly subscriber churn of 1 per cent, higher than the churn of 0.62 per cent reported for Q2 2018. Subscriber churn for Q2 2017 was 0.87 per cent. The company has reported lower average revenue per user of Rs 208 for the quarter under review as compared to Rs 212 for the immediate trailing quarter, but higher than the Rs 205 for the corresponding year ago quarter.

    Let us look at the other numbers reported by Videocon d2h

    Total expenses increased 6.5 per cent yoy to Rs 726.59 crore in Q 2018 from Rs 681.97 crore. Operating expenses increased 8.9 per cent yoy to Rs 423.61 crore in Q2 2018 from Rs 407.38 crore. Administration and other expenses reduced 14 per cent yoy to Rs 18.89 crore during the quarter under review from Rs 21.97 crore. Employee benefits expenses declined 4.3 per cent yoy to Rs 28.92 crore in Q2 2018 from Rs 30.21 crore. Selling and distribution expenses reduced 3.5 per cent yoy to Rs 50.84 crore in Q2 2018 from Rs 52.69 crore.

    Company speak

    Videocon d2h executive chairman Dhoot said, “I am pleased to report that we continued to deliver a strong quarterly result with our adjusted EBITDA being our highest ever quarterly adjusted EBITDA at Rs 2.91 billion. Our adjusted EBITDA per subscriber continued to improve further and came in at Rs 73 per subscriber per month.”

    “We continue to see a recovery on the ground and expect overall business prospects to improve driven by several factors including lower content availability on the FreeDish platform and the Indian government’s focus on increasing affordable housing and improving rural income levels in the recent budget,” he added.

    “During the quarter, the company received all the necessary approvals relating to its amalgamation with and into Dish TV India. The two companies now intend to file the relevant intimations / e-forms with the Registrar of Companies, Ministry of Corporate Affairs, Maharashtra, Mumbai in the last week of February 2018, which filing date will become the effective date for the proposed merger. The company will issue the relevant timelines and other mandatory notices in relation to the merger in due course,” concluded Dhoot.

    Also Read :

    Dish TV-Videocon d2h deal on course

    Dish TV re-evaluating Videocon d2h merger

    Videocon d2h reports another profitable quarter

  • 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.”

  • Videocon d2h receives shareholder, Competition Commission nod for merger with Dish TV

    BENGALURU: The Saurabh Dhoot led Videocon d2h Limited (Videocon d2h) has informed the Security Exchange Commission (SEC) that its equity shareholders have thought it fit and given consent by the requisite majority to the scheme of arrangement for amalgamation of Videocon d2h with Subhash Chandra’s Dish TV India Limited (Dish TV) and their respective shareholders and creditors. In pursuance to the Order of the Hon’ble National Company Law Tribunal, dated 22 March, 2017, the meeting of the shareholders was held on 9 May in Mumbai. The company intends to file the company petition with the Hon’ble National Company Law Tribunal seeking sanction of the scheme.

    Further, Videocon d2h has also informed the SEC thaton 9 May 2017 it has received a letter dated 4 May 2017from the Competition Commission of India, approving the proposed combination of Videocon d2h with Dish TV.

    Videocon d2h is a Nashdaq listed company, while Dish TV is listed on the NSE and BSE in India and the Luxembourg Stock Exchange in the form of GDRs’. The merged entity, Dish TV Videocon, will have a joint management structure with Jawahar Goel as its Chairman and MD and a vice-chairman and deputy managing director nominated by Videocon D2H shareholders.

    According to a Dish TV press release, following the closing of the merger transaction, the merged entity will be renamed as Dish TV Videocon Limited (Dish TV Videocon). Dish TV Videocon shall issue 857.791 million (85.7791 crore) shares as consideration for the Scheme and the Vd2h shareholders shall be allotted 2.021 new shares of Dish TV Videocon for every one share held in Vd2h subject to certain adjustments. This would result in Dish TV shareholders owning 1,066.861 million (106.6861 crore) existing shares or 55.4% of Dish TV Videocon, and Vd2h shareholders owning 857.791 million (85.7791 crore) new shares or 44.6% of Dish TV Videocon.

    Dish TV Videocon will be led by Jawahar Lal Goel as Chairman and Managing Director, combining the strength of senior and operating management teams while offering further career growth opportunities for employees of the two merging companies. The Vd2h principals shall have the right to nominate two directors on the Dish TV Videocon Board, one of whom shall be cice chairman and the other a deputy managing director.

    The merger is expected to create a leading cable and satellite distribution platform in India. Dish TV Videocon would serve 27.6 million (2.76 crore) net subscribers in India, as of September 30, 2016 on a pro forma basis, out of a total of 175 million (17.5 crore) TV households in India highlighting significant room for growth.

    At the close of the merger transaction, the current promoters of Dish TV shall continue as promoters of Dish TV Videocon. The Dish TV principals are also in discussion with the Vd2h principals to purchase some of the Vd2h principals’ shares in Dish TV Videocon post the amalgamation, details of which are likely to be finalised soon.