ITV

Tag: Dish TV

  • Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    BENGALURU: Videocon d2h is the second listed Indian DTH player to report a profit after tax (PAT), after the Essel group’s Dish TV that turned the numbers black last year. Videocon d2h reported PAT of Rs 2.7 crore for the quarter ended 30 June 2016 (Q1-17, current quarter). For the corresponding year ago quarter (Q1-16), the company had reported a loss of Rs 24.4 crore and for the immediate trailing quarter (Q4-16) reported loss was Rs 21.2 crore.

    The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber number growth at 122.9 lakh for Q1-17 as compared to 106.4 lakh and a 3.6 percent quarter-over-quarter (q-o-q) growth from118.6 lakh. Average revenue per user (ARPU) in the current quarter increased to Rs 219 from Rs 205 in Q1-16 and from Rs 214 in the immediate trailing quarter.

    Subscriber acquisition cost (SAC) in Q1-17 was higher at Rs 1,872 as compared to Rs 1,793 in Q1-16 and Rs 1,776 in Q4-16.

    Subscriber monthly churn in the current quarter was 0.49 percent; in Q1-16 it was slightly lower at 0.46 percent, while in the immediate trailing quarter it was much higher at 0.58 percent.

    Videocon d2h reported 23.5 percent y-o-y growth in total revenue from operations for Q1-17 at Rs 818.5 crore as compared to Rs 662.8 crore and a 6.1 percent q-o-q growth from Rs 771.5 crore.

    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 subscription and activation revenue in the current quarter increased 23.9 percent y-o-y to Rs 752.3 crore from Rs 607.3 crore and increased 6.6 percent q-o-q from Rs 705.6 crore.

    Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m delighted to share that the first quarter of fiscal 2017 has been a landmark quarter for our Company in its enduring journey. In this quarter, we have had a positive profit after tax and achieved free cash flow breakeven. This is a great achievement.

    “In line with our focus on paying down term loans, the Company recently pre-paid further term loans, strengthening our balance sheet further. We have significantly de-levered our balance sheet and become a stronger company going from strength to strength, reducing term loans by around $200 million since our IPO, with over $ 55 million repaid in the current fiscal year.”

    Speaking on the results, Videocon d2h CEO Anil Khera said, “We are happy to report that Adjusted EBITDA for the first quarter of fiscal year 2017 grew 32.4 percent year on year, which is primarily a result of strong subscriber growth, higher revenue realizations and better operating margins. During the quarter, we expanded our retail network in areas that come under India’s Phase III and Phase IV Digitalization program. We are happy to announce our strategic tie-up with Vodafone to enable recharge using their well-established m-pesa digital wallet and at Vodafone outlets, as it will give our customers an easy and efficient way to recharge their d2h account at their convenience.”

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

    Adjusted EBIDTA grew 32.4 percent y-o-y to Rs 251.9 crore (30.8 percent margin) from Rs 190.3 crore (28.7 percent margin) and grew 15 percent q-o-q from Rs 219.1 crore (28.4 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 70 in Q1-17 from Rs 61 in Q1-16 and from Rs 63 in Q4-16.

    Content costs margin in Q1-17 has reduced to 36.1 percent as compared to 37 percent in the corresponding year ago quarter and 37.5 percent in the immediate trailing quarter.

    Total expense in Q1-17 increased 19.7 percent y-o-y to Rs 739.8 crore from Rs 618.1 crore and increased 3.8 percent from Rs 721.8 crore.

    Selling and distribution expense in the current quarter increased 25.7 percent y-o-y to Rs 64 crore from Rs 50.9 crore, but declined 3.6 percent q-o-q from Rs 66.4 crore.

    Employee benefit expense in Q1-17 was 4 percent higher at Rs 32.2 crore as compared to Rs 30.9 crore in Q1-16 and 10.7 percent more than the Rs 29.1 crore in Q4-16.

    Net finance cost in Q1-17 was Rs 75.9 crore (9.3 percent of revenue from operations); in Q1-16 net finance cost was Rs 76.5 crore (11.5 percent of revenue from operations) and in Q4-16 it was Rs 77.8 crore (10.1 percent of revenue from operations).

    The company had term loans of Rs 2,187 crore and total cash and short term investments of Rs 612 crore as of June 30, 2016. Videocon d2h says that it has repaid term loans amounting to Rs 387 crore in the current fiscal year. With this, it has reduced total term loans by over Rs 1,300 crore since its IPO.

  • Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    Q1-17: Videocon d2h reports PAT, 15.5percent subscriber growth

    BENGALURU: Videocon d2h is the second listed Indian DTH player to report a profit after tax (PAT), after the Essel group’s Dish TV that turned the numbers black last year. Videocon d2h reported PAT of Rs 2.7 crore for the quarter ended 30 June 2016 (Q1-17, current quarter). For the corresponding year ago quarter (Q1-16), the company had reported a loss of Rs 24.4 crore and for the immediate trailing quarter (Q4-16) reported loss was Rs 21.2 crore.

    The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber number growth at 122.9 lakh for Q1-17 as compared to 106.4 lakh and a 3.6 percent quarter-over-quarter (q-o-q) growth from118.6 lakh. Average revenue per user (ARPU) in the current quarter increased to Rs 219 from Rs 205 in Q1-16 and from Rs 214 in the immediate trailing quarter.

    Subscriber acquisition cost (SAC) in Q1-17 was higher at Rs 1,872 as compared to Rs 1,793 in Q1-16 and Rs 1,776 in Q4-16.

    Subscriber monthly churn in the current quarter was 0.49 percent; in Q1-16 it was slightly lower at 0.46 percent, while in the immediate trailing quarter it was much higher at 0.58 percent.

    Videocon d2h reported 23.5 percent y-o-y growth in total revenue from operations for Q1-17 at Rs 818.5 crore as compared to Rs 662.8 crore and a 6.1 percent q-o-q growth from Rs 771.5 crore.

    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 subscription and activation revenue in the current quarter increased 23.9 percent y-o-y to Rs 752.3 crore from Rs 607.3 crore and increased 6.6 percent q-o-q from Rs 705.6 crore.

    Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m delighted to share that the first quarter of fiscal 2017 has been a landmark quarter for our Company in its enduring journey. In this quarter, we have had a positive profit after tax and achieved free cash flow breakeven. This is a great achievement.

    “In line with our focus on paying down term loans, the Company recently pre-paid further term loans, strengthening our balance sheet further. We have significantly de-levered our balance sheet and become a stronger company going from strength to strength, reducing term loans by around $200 million since our IPO, with over $ 55 million repaid in the current fiscal year.”

    Speaking on the results, Videocon d2h CEO Anil Khera said, “We are happy to report that Adjusted EBITDA for the first quarter of fiscal year 2017 grew 32.4 percent year on year, which is primarily a result of strong subscriber growth, higher revenue realizations and better operating margins. During the quarter, we expanded our retail network in areas that come under India’s Phase III and Phase IV Digitalization program. We are happy to announce our strategic tie-up with Vodafone to enable recharge using their well-established m-pesa digital wallet and at Vodafone outlets, as it will give our customers an easy and efficient way to recharge their d2h account at their convenience.”

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

    Adjusted EBIDTA grew 32.4 percent y-o-y to Rs 251.9 crore (30.8 percent margin) from Rs 190.3 crore (28.7 percent margin) and grew 15 percent q-o-q from Rs 219.1 crore (28.4 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 70 in Q1-17 from Rs 61 in Q1-16 and from Rs 63 in Q4-16.

    Content costs margin in Q1-17 has reduced to 36.1 percent as compared to 37 percent in the corresponding year ago quarter and 37.5 percent in the immediate trailing quarter.

    Total expense in Q1-17 increased 19.7 percent y-o-y to Rs 739.8 crore from Rs 618.1 crore and increased 3.8 percent from Rs 721.8 crore.

    Selling and distribution expense in the current quarter increased 25.7 percent y-o-y to Rs 64 crore from Rs 50.9 crore, but declined 3.6 percent q-o-q from Rs 66.4 crore.

    Employee benefit expense in Q1-17 was 4 percent higher at Rs 32.2 crore as compared to Rs 30.9 crore in Q1-16 and 10.7 percent more than the Rs 29.1 crore in Q4-16.

    Net finance cost in Q1-17 was Rs 75.9 crore (9.3 percent of revenue from operations); in Q1-16 net finance cost was Rs 76.5 crore (11.5 percent of revenue from operations) and in Q4-16 it was Rs 77.8 crore (10.1 percent of revenue from operations).

    The company had term loans of Rs 2,187 crore and total cash and short term investments of Rs 612 crore as of June 30, 2016. Videocon d2h says that it has repaid term loans amounting to Rs 387 crore in the current fiscal year. With this, it has reduced total term loans by over Rs 1,300 crore since its IPO.

  • Dish TV to introduce card-less set top boxes

    Dish TV to introduce card-less set top boxes

    MUMBAI: Dish TV India is looking at moving away from set top boxes requiring smart cards for subscribers to its satellite pay TV service. This is likely to take place over the next three or four months.

    Last weekend, India’s largest DTH provider announced that it had selected Rambus’ Cryptomedia security platform for use in its pay TV satellite system. The platform, which includes a hardware root-of-trust embedded in the set-top box chipset, ensures secure distribution of premium content for cable and satellite operators while eliminating the need for a smart card and enhancing usability of the set-top box.

    “As we look to grow our customer base from the current 13 million subscribers, the demand for cost-effective and robust content protection solutions becomes increasingly important for consumers seeking premium content,” said Dish TV India managing director Jawahar Goel. “By leveraging the embedded CryptoMedia core, we no longer need a smart card to provide secure access to premium content, significantly reducing the cost and improving the security of the set-top box.”

    The CryptoMedia Content Protection Core, developed by Rambus Cryptography Research, is one of several new security elements to be integrated in Dish TV India’s latest set-top boxes. Together with the CryptoMedia operator services, the solution provides a flexible security foundation that allows Dish TV India to easily update and reconfigure software and hardware security throughout the lifecycle of the set-top box. Dish TV India will launch the new platform in broad commercial operation later this year.

    “By using the CryptoMedia Content Protection Core, Dish TV India recognizes the value of enabling another level of protection in the set-top box chipset alongside security elements provided by CAS vendors,” said Martin Scott, senior vice president and general manager of the Security Division at Rambus. “Our CryptoMedia Security Platform provides Dish TV India with extra protection for the delivery of content, utilizing our expertise in both embedded security and ecosystem enablement.”

    Formerly part of the CryptoFirewall family, the CryptoMedia Content Protection Core is designed to provide strong security and superior system design flexibility for premium content distribution. The solution minimizes the risk of security failure and helps simplify product development. The core is available in a broad range of set-top box and smart TV chipsets and is compatible with the leading CAS and DRM systems to prevent unauthorized access to content and services, including features like pay-per-view and service-tier upgrades.

  • Dish TV to introduce card-less set top boxes

    Dish TV to introduce card-less set top boxes

    MUMBAI: Dish TV India is looking at moving away from set top boxes requiring smart cards for subscribers to its satellite pay TV service. This is likely to take place over the next three or four months.

    Last weekend, India’s largest DTH provider announced that it had selected Rambus’ Cryptomedia security platform for use in its pay TV satellite system. The platform, which includes a hardware root-of-trust embedded in the set-top box chipset, ensures secure distribution of premium content for cable and satellite operators while eliminating the need for a smart card and enhancing usability of the set-top box.

    “As we look to grow our customer base from the current 13 million subscribers, the demand for cost-effective and robust content protection solutions becomes increasingly important for consumers seeking premium content,” said Dish TV India managing director Jawahar Goel. “By leveraging the embedded CryptoMedia core, we no longer need a smart card to provide secure access to premium content, significantly reducing the cost and improving the security of the set-top box.”

    The CryptoMedia Content Protection Core, developed by Rambus Cryptography Research, is one of several new security elements to be integrated in Dish TV India’s latest set-top boxes. Together with the CryptoMedia operator services, the solution provides a flexible security foundation that allows Dish TV India to easily update and reconfigure software and hardware security throughout the lifecycle of the set-top box. Dish TV India will launch the new platform in broad commercial operation later this year.

    “By using the CryptoMedia Content Protection Core, Dish TV India recognizes the value of enabling another level of protection in the set-top box chipset alongside security elements provided by CAS vendors,” said Martin Scott, senior vice president and general manager of the Security Division at Rambus. “Our CryptoMedia Security Platform provides Dish TV India with extra protection for the delivery of content, utilizing our expertise in both embedded security and ecosystem enablement.”

    Formerly part of the CryptoFirewall family, the CryptoMedia Content Protection Core is designed to provide strong security and superior system design flexibility for premium content distribution. The solution minimizes the risk of security failure and helps simplify product development. The core is available in a broad range of set-top box and smart TV chipsets and is compatible with the leading CAS and DRM systems to prevent unauthorized access to content and services, including features like pay-per-view and service-tier upgrades.

  • TRAI open house on DAS interconnect opens up differences amongst stakeholders

    TRAI open house on DAS interconnect opens up differences amongst stakeholders

    NEW DELHI: An Open House Discussion (OHD), organised by regulator TRAI on inter-connection framework for broadcasting TV services distributed through addressable systems (DAS), brought out the fact that yawning gaps still exist between broadcasters and distribution platforms.

    The OHD, organised on Wednesday to garner final viewpoints of stakeholders after they have already submitted their stand on the issue, highlighted that the industry is still fighting for short to medium term gains instead of seeing the big picture.

    While the broadcasting fraternity stood its ground saying, by and large, that interconnect agreements are private matters between two parties after mutually agreeing on certain terms, distribution platforms maintained that “more transparency is needed.”

    “How can it be that a matter related to a broadcaster is private and nobody can ask about them, while those relating to us (distribution platforms) are supposed to be made public?” Jawahar Goel, managing director, Dish TV asked.

    Goel’s probing query came after Star India, quoting various laws and regulations, said that the regulator should not encroach upon or erode broadcasters’ “right to freedom of contract in negotiating with distribution platform operators (DPOs).”

    In its submission Star India had said, “The proposed regulations must allow freedom to negotiate to broadcasters so as to meet the peculiar demands of the market. Universal treatment to all seekers of signals— despite intelligible differences — is not an obligation imposed by law nor is it desirable.”

    Issue like discounts offered by broadcasters, pay channels turning FTA, cloning of existing content to start another TV channel, regulation of OTT platforms managed and owned by broadcasters, cost of spectrum charges paid by consumers for accessing OTT services, the vagueness of interconnect agreements without geographical locations mentioned and the pitfalls of a proposed Interconnect Management System (IMS) whereby commercial data and information could be put in an encrypted form in limited public domain were amongst many issues brought up by stakeholders.

    Pointing out broadcasters “impose stringent packaging restrictions” on DPOs, Videocon d2h, expressed its concerns on HD channels and their pricing, highlighting the fact that the difference in cost of the same content in standard definition and high-definition is hard to explain to price-sensitive consumers.

    While TRAI chairman RS Sharma in the beginning observed that transparency, non-discrimination and consumer interests were paramount, amongst other things, when the regulator proposes a regulation, some MSOs and LCOs (led by a vocal Roop Sharma of Cable Operators’ Federation of India) vociferously said it’s transparency that’s lacking.

    Dish TV also highlighted the discrimination between the licensing regime of DTH operators and cable ops — DTH licensee pays an annual fee, while a cable op doesn’t pay any licence fee on registration .

    Bharti Telemedia, part of the telecoms-to-media giant Bharti group, reiterated Dish TV’s point on DTH ops being treated differently saying a “non-level playing field amongst the various types of service providers” exists.

    In its submission to the TRAI earlier, Bharti had stated that DTH operators pay a higher tax of 34.5% and have a transparent business operation, while “digital cable operators, who have a similar nature of business, are not transparent and are also not liable to pay any licence fee.”

    Though global trends indicate there’s convergence of services and service providers, in India there seems to be hardly any convergence of ideas or consensus amongst the various stakeholders and this would make any regulator’s job that much tougher. Unless one leaves market dynamics to take care of many issues that were raised at the OHD.

  • TRAI open house on DAS interconnect opens up differences amongst stakeholders

    TRAI open house on DAS interconnect opens up differences amongst stakeholders

    NEW DELHI: An Open House Discussion (OHD), organised by regulator TRAI on inter-connection framework for broadcasting TV services distributed through addressable systems (DAS), brought out the fact that yawning gaps still exist between broadcasters and distribution platforms.

    The OHD, organised on Wednesday to garner final viewpoints of stakeholders after they have already submitted their stand on the issue, highlighted that the industry is still fighting for short to medium term gains instead of seeing the big picture.

    While the broadcasting fraternity stood its ground saying, by and large, that interconnect agreements are private matters between two parties after mutually agreeing on certain terms, distribution platforms maintained that “more transparency is needed.”

    “How can it be that a matter related to a broadcaster is private and nobody can ask about them, while those relating to us (distribution platforms) are supposed to be made public?” Jawahar Goel, managing director, Dish TV asked.

    Goel’s probing query came after Star India, quoting various laws and regulations, said that the regulator should not encroach upon or erode broadcasters’ “right to freedom of contract in negotiating with distribution platform operators (DPOs).”

    In its submission Star India had said, “The proposed regulations must allow freedom to negotiate to broadcasters so as to meet the peculiar demands of the market. Universal treatment to all seekers of signals— despite intelligible differences — is not an obligation imposed by law nor is it desirable.”

    Issue like discounts offered by broadcasters, pay channels turning FTA, cloning of existing content to start another TV channel, regulation of OTT platforms managed and owned by broadcasters, cost of spectrum charges paid by consumers for accessing OTT services, the vagueness of interconnect agreements without geographical locations mentioned and the pitfalls of a proposed Interconnect Management System (IMS) whereby commercial data and information could be put in an encrypted form in limited public domain were amongst many issues brought up by stakeholders.

    Pointing out broadcasters “impose stringent packaging restrictions” on DPOs, Videocon d2h, expressed its concerns on HD channels and their pricing, highlighting the fact that the difference in cost of the same content in standard definition and high-definition is hard to explain to price-sensitive consumers.

    While TRAI chairman RS Sharma in the beginning observed that transparency, non-discrimination and consumer interests were paramount, amongst other things, when the regulator proposes a regulation, some MSOs and LCOs (led by a vocal Roop Sharma of Cable Operators’ Federation of India) vociferously said it’s transparency that’s lacking.

    Dish TV also highlighted the discrimination between the licensing regime of DTH operators and cable ops — DTH licensee pays an annual fee, while a cable op doesn’t pay any licence fee on registration .

    Bharti Telemedia, part of the telecoms-to-media giant Bharti group, reiterated Dish TV’s point on DTH ops being treated differently saying a “non-level playing field amongst the various types of service providers” exists.

    In its submission to the TRAI earlier, Bharti had stated that DTH operators pay a higher tax of 34.5% and have a transparent business operation, while “digital cable operators, who have a similar nature of business, are not transparent and are also not liable to pay any licence fee.”

    Though global trends indicate there’s convergence of services and service providers, in India there seems to be hardly any convergence of ideas or consensus amongst the various stakeholders and this would make any regulator’s job that much tougher. Unless one leaves market dynamics to take care of many issues that were raised at the OHD.

  • Assam revises entertainment tax on DTH & Cable TV

    Assam revises entertainment tax on DTH & Cable TV

    MUMBAI: Watching television is set to become very expensive in homes in Assam. Reason: the state government earlier this month revised entertainment tax that’s levied on DTH and cable TV services such as Airtel, Tata Sky, Videcond2h, Dish TV, Sun TV, Reliance Big DTH, Manthan, Sitcable among others.

    The Assam governor earlier this month issued a notification under which the rate of entertainment tax has been revised from Rs 25 per home to Rs 30 per subscriber for DTH services. That’s a 20 per cent jump in the tax rates.

    Another executive order was issued under which tax on cable TV services was revised from Rs 10 per subscriber to Rs 20 per residential subscriber. That’s a massive 100 per cent jump in tax tariffs.

    The Assam government has not touched the rate that hotels fork out per subscriber for both cable TV and DTH services. It has stayed constant at Rs 50 per subscriber.

    Will this extra burden turn viewers away from both cable & satellite TV and DTH? The jury is out, but most media watchers say that they don’t think it will have much of an impact.

  • Assam revises entertainment tax on DTH & Cable TV

    Assam revises entertainment tax on DTH & Cable TV

    MUMBAI: Watching television is set to become very expensive in homes in Assam. Reason: the state government earlier this month revised entertainment tax that’s levied on DTH and cable TV services such as Airtel, Tata Sky, Videcond2h, Dish TV, Sun TV, Reliance Big DTH, Manthan, Sitcable among others.

    The Assam governor earlier this month issued a notification under which the rate of entertainment tax has been revised from Rs 25 per home to Rs 30 per subscriber for DTH services. That’s a 20 per cent jump in the tax rates.

    Another executive order was issued under which tax on cable TV services was revised from Rs 10 per subscriber to Rs 20 per residential subscriber. That’s a massive 100 per cent jump in tax tariffs.

    The Assam government has not touched the rate that hotels fork out per subscriber for both cable TV and DTH services. It has stayed constant at Rs 50 per subscriber.

    Will this extra burden turn viewers away from both cable & satellite TV and DTH? The jury is out, but most media watchers say that they don’t think it will have much of an impact.

  • Dish TV terms Videocon d2h acquisition plans speculative

    Dish TV terms Videocon d2h acquisition plans speculative

    MUMBAI: Leading Indian DTH operator, DishTV, has rubbished news reports that it was acquiring or it is in talks to acquire India’s fastest growing DTH operator Videocon d2H. It has issued a press statement and a release to the Bombay stock exchange which says: “This is in reference to the news relating to the proposed acquisition of Videocon D2H by Dish TV appearing in certain sections of media. The news is speculative in nature and as a Policy, Dish TV does not comment on market speculations and rumours.”

    An article on moneycontrol.com, owned by the Network18 group, had stated that Dish TV India was in the running to take over Videocon d2H. According to moneycontrol, the latter had put up a bid price which valued itself at around $1 billion. Dish TV’s offer price was lower, and it was trying to bring d2H’s bid down. Said the report: “The two companies are negotiating on valuations close to $ 1 billion. This is because Videocon’s ask price is currently higher than what Dish TV has offered. Nasdaq-listed Videocon d2H has a market capitalisation of of USD 855 million and has a net debt of Rs 1600 crore. The losses that the company had last fiscal year stood at Rs 92.2 crore.”

    The article had further claimed that: “Even the lenders have suggested that sale of Videocon d2H to Dish TV is likely.”

    This had been supported by other news reports which had explained that lenders – banks and financial institutions – to the Vengopal Dhoot promoted Videocon group were allegedly forcing it to offload assets as it is too heavily leveraged. The reports had stated that the much diversified group which began in electronics but today was involved in oil and gas had taken on a debt pile that it was finding difficult to service. Hence, it was exploring several options to pare its loans by finding buyers for assets like its oil and gas operations or its direct to home television businesses, the reports had claimed.

    But with DishTV pooh-poohing that it was amongst the suitors for Videocon d2H, at least speculation about one of the alleged transactions has been put to rest.

  • Dish TV terms Videocon d2h acquisition plans speculative

    Dish TV terms Videocon d2h acquisition plans speculative

    MUMBAI: Leading Indian DTH operator, DishTV, has rubbished news reports that it was acquiring or it is in talks to acquire India’s fastest growing DTH operator Videocon d2H. It has issued a press statement and a release to the Bombay stock exchange which says: “This is in reference to the news relating to the proposed acquisition of Videocon D2H by Dish TV appearing in certain sections of media. The news is speculative in nature and as a Policy, Dish TV does not comment on market speculations and rumours.”

    An article on moneycontrol.com, owned by the Network18 group, had stated that Dish TV India was in the running to take over Videocon d2H. According to moneycontrol, the latter had put up a bid price which valued itself at around $1 billion. Dish TV’s offer price was lower, and it was trying to bring d2H’s bid down. Said the report: “The two companies are negotiating on valuations close to $ 1 billion. This is because Videocon’s ask price is currently higher than what Dish TV has offered. Nasdaq-listed Videocon d2H has a market capitalisation of of USD 855 million and has a net debt of Rs 1600 crore. The losses that the company had last fiscal year stood at Rs 92.2 crore.”

    The article had further claimed that: “Even the lenders have suggested that sale of Videocon d2H to Dish TV is likely.”

    This had been supported by other news reports which had explained that lenders – banks and financial institutions – to the Vengopal Dhoot promoted Videocon group were allegedly forcing it to offload assets as it is too heavily leveraged. The reports had stated that the much diversified group which began in electronics but today was involved in oil and gas had taken on a debt pile that it was finding difficult to service. Hence, it was exploring several options to pare its loans by finding buyers for assets like its oil and gas operations or its direct to home television businesses, the reports had claimed.

    But with DishTV pooh-poohing that it was amongst the suitors for Videocon d2H, at least speculation about one of the alleged transactions has been put to rest.