Tag: HD Smart Connect Set Top Box

Smart STB: Videocon d2h partners SonyLiv

MUMBAI: Videocon d2h, one of the fastest growing DTH service provider in India, has signed a deal with SonyLIV for its HD Smart Connect Set Top Box. This partnership will enable Videocon d2h’s HD Smart Connect Set Top Box customers to access a seamless broad selection of content available on SonyLIV app.

SonyLIV, which is the first premium Video On Demand (VOD) service by Sony Pictures Networks’ (SPN), will enrich Videocon d2h’s customers with an array of movies, strong line-up of events across all sports, shows, music, TV Shows and much more.

SonyLIV can be accessed through all Web Apps button on Videocon d2h’s HD Smart Connect Set Top Box. The Smart Connect Set Top Box works on connectivity management platform to deliver a variety of connected services that leaves the customer with wide choice for entertainment.

HD SMART Set top Box (Connected Set top box) converts any existing TV into a Smart TV besides showing you 650 Channels & services in High Definition and Standard Definition. The DTH service allows one to watch their favourite channels in SD and HD, the Connected set top box allows one to browse content from applications residing on STB. These Applications will enhance the pleasure of accessing content on a bigger screen thus making it a family event rather than solo watching on a smaller screen. HD Smart Set Top Box will work as a tool for personalization, engagement and new customer experiences and with internet connectivity, one can convert one’s TV into a smart TV using it.

Videocon d2h executive chairman Saurabh Dhoot said, “This collaboration would strengthen the entertainment apps available on our HD Smart Connect and provide our customers with a large range of entertainment.’’

Videocon d2h CEO Anil Khera said, “Our partnership with Sony LIV is yet another step towards creating the highest-quality consumer experience. Innovative products like HD Smart Connect and rich entertainment content available delights next generation users. Our focused approach strives for delivering exceptional content and customer delight.’’

Sony Pictures Networks India EVP and Head – Digital Business Uday Sodhi said, “Through this synergistic association, we will be entertaining and engaging the audience with the rich content portfolio that SonyLIV showcases. The partnership allows us to deliver a superior entertainment experience to Indian audiences across genres and multiple screens, and live up to our brand promise of ‘We LIV to Entertain’.”

March 30, 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
Q2-17: Videocon d2h top and bottom lines up

BENGALURU: Last quarter, Videocon d2h was 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. Taking that trend further, Videocon d2h reported PAT of Rs 6.32 crore (0.8 percent margin) for the quarter ended 30 September 2016 (Q2-17, current quarter). 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).

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.

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 Q1-16 but declined by Rs 2 from Rs 211 in the immediate trailing quarter.

Subscriber matrices

Subscriber acquisition cost (SAC) in Q2-17 was higher at Rs 1,869 as compared to Rs 1,775 in Q2-16 but was lower than Rs 1,872 in Q1-17.

Subscriber monthly churn in the current quarter was 0.95 percent; in Q1-16 it was slightly higher at 1.19 percent, while in the immediate trailing quarter it was much lower at 0.49 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 increased 21.9 percent y-o-y to Rs 710.70 crore and increased 2 percent q-o-q from Rs 697 crore.

A look at some of the other metrics reported by Videocon d2h

Adjusted EBIDTA grew 38.3 percent y-o-y to Rs 260.41 crore (33.6 percent margin) from Rs 188.26 crore (27.3 percent margin) and grew 4.3 percent q-o-q from Rs 249.78 crore (32.7 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 71 in Q2-17 from Rs 59 in Q2-16 and from Rs 70 in Q1-17.

Content costs margin in Q2-17 has reduced to 38.7 percent as compared to 40.7 percent in the corresponding year ago quarter and was flat as compared to the immediate trailing quarter.

Total expense in Q2-17 increased 5.2 percent y-o-y to Rs 684.29 crore from Rs 650.70 crore and was flat q-o-q as compared to Rs 684.53 crore.

Selling and distribution expense in the current quarter increased 22.4 percent y-o-y to Rs 60.7 crore from Rs 49.6 crore, but declined 5.2 percent q-o-q from Rs 64 crore.

Employee benefit expense in Q2-17 were 4 percent higher at Rs 31.5 crore as compared to Rs 30.3 crore in Q2-16 but were 2.2 percent lower than the Rs 32.2 crore in Q1-17.

Net finance cost in Q2-17 was Rs 71.7 crore; in Q2-16 net finance cost was Rs 80.2 crore and in Q1-17 it was Rs 75.9 crore.

Company speak

Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m pleased to report a terrific quarter with over 37% increase in EBITDA year on year, in spite of the previously announced increase in taxes which impacted ARPU. Our quarterly results performance is consistent with our five point strategy to 1) grow subscriber base, 2) enhance subscriber monetization, 3) focus on localization and premium services, 4) lead the market in technological innovation and 5) enhance operational efficiencies and improve margins. These imperatives are drivingour success at creating sustainable shareholder value.

“We are excited and fully prepared to seize the significant subscriber growth opportunity ahead of us through our leading distribution, customer service and differentiated content offering, supported by a strong balance sheet,’ added Dhoot.

“We achieved positive profit after tax and turned free cash flow positive during the current fiscal year, which we believe is a great achievement,” concluded Dhoot.

Speaking on the results, Videocon d2h CEO Anil Khera said, “We are extremely excited with the business growth opportunities ahead of the company. We welcome the regulators’ initiative to review and draft a tariff order that aims to create complete transparency in carriage and content deals and bring in commercial parity amongst distribution platforms.”

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.

October 27, 2016
Q2-17: Videocon d2h top and bottom lines up

BENGALURU: Last quarter, Videocon d2h was 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. Taking that trend further, Videocon d2h reported PAT of Rs 6.32 crore (0.8 percent margin) for the quarter ended 30 September 2016 (Q2-17, current quarter). 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).

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.

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 Q1-16 but declined by Rs 2 from Rs 211 in the immediate trailing quarter.

Subscriber matrices

Subscriber acquisition cost (SAC) in Q2-17 was higher at Rs 1,869 as compared to Rs 1,775 in Q2-16 but was lower than Rs 1,872 in Q1-17.

Subscriber monthly churn in the current quarter was 0.95 percent; in Q1-16 it was slightly higher at 1.19 percent, while in the immediate trailing quarter it was much lower at 0.49 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 increased 21.9 percent y-o-y to Rs 710.70 crore and increased 2 percent q-o-q from Rs 697 crore.

A look at some of the other metrics reported by Videocon d2h

Adjusted EBIDTA grew 38.3 percent y-o-y to Rs 260.41 crore (33.6 percent margin) from Rs 188.26 crore (27.3 percent margin) and grew 4.3 percent q-o-q from Rs 249.78 crore (32.7 percent margin). Videocon d2h reports that EBIDTA per subscriber has increased to Rs 71 in Q2-17 from Rs 59 in Q2-16 and from Rs 70 in Q1-17.

Content costs margin in Q2-17 has reduced to 38.7 percent as compared to 40.7 percent in the corresponding year ago quarter and was flat as compared to the immediate trailing quarter.

Total expense in Q2-17 increased 5.2 percent y-o-y to Rs 684.29 crore from Rs 650.70 crore and was flat q-o-q as compared to Rs 684.53 crore.

Selling and distribution expense in the current quarter increased 22.4 percent y-o-y to Rs 60.7 crore from Rs 49.6 crore, but declined 5.2 percent q-o-q from Rs 64 crore.

Employee benefit expense in Q2-17 were 4 percent higher at Rs 31.5 crore as compared to Rs 30.3 crore in Q2-16 but were 2.2 percent lower than the Rs 32.2 crore in Q1-17.

Net finance cost in Q2-17 was Rs 71.7 crore; in Q2-16 net finance cost was Rs 80.2 crore and in Q1-17 it was Rs 75.9 crore.

Company speak

Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I’m pleased to report a terrific quarter with over 37% increase in EBITDA year on year, in spite of the previously announced increase in taxes which impacted ARPU. Our quarterly results performance is consistent with our five point strategy to 1) grow subscriber base, 2) enhance subscriber monetization, 3) focus on localization and premium services, 4) lead the market in technological innovation and 5) enhance operational efficiencies and improve margins. These imperatives are drivingour success at creating sustainable shareholder value.

“We are excited and fully prepared to seize the significant subscriber growth opportunity ahead of us through our leading distribution, customer service and differentiated content offering, supported by a strong balance sheet,’ added Dhoot.

“We achieved positive profit after tax and turned free cash flow positive during the current fiscal year, which we believe is a great achievement,” concluded Dhoot.

Speaking on the results, Videocon d2h CEO Anil Khera said, “We are extremely excited with the business growth opportunities ahead of the company. We welcome the regulators’ initiative to review and draft a tariff order that aims to create complete transparency in carriage and content deals and bring in commercial parity amongst distribution platforms.”

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.

October 27, 2016
FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

BENGALURU: Videocon d2h Limited (Videocon d2h) led by executive chairman Saurabh Dhoot reported 16.8 lakh net subscriber additions during the year ended 31 March 2016 (FY-16, current year). The company reported a subscriber base of 118.6 lakh at the end of the current year as compared to 101.8 at the end of the previous fiscal (FY-15), hence a growth of 16.5 percent in FY-16 as compared to FY-15. Gross subscribers increased by 26.5 lakh in FY-16. Incremental subscriber churn in the current year reduced by 7 basis points to 0.73 percent as compared to 0.80 percent in FY-16.The company claims to have added the largest number of subscribers amongst its peers in India for the sixth year in a row in FY-16.

Videocon d2h reported simple EBIDTA (Operating Profit, Earnings before Interest-Depreciation-Tax-Amortisation) of Rs 789.52 crore (EBIDTA margin of 27.6 percent) for FY-16 which was 32.5 percent more than the Rs 595.64 crore (25.5 percent EBIDTA margin) in FY-16.

Revenue in the current year increased 22.2 percent to Rs 2,855.86 crore from Rs 2,337.71 crore in the previous year. Subscription and Activation revenue in FY-16 grew 26.4 percent to Rs 2,607 crore compared to Rs 2,063 crore in FY-15.

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.

Average Revenue per User (ARPU) in FY-16 increased by Rs 11 from Rs 196 in the previous year to Rs 207 in FY-16.

The DTH major reported a lower loss in FY-16 at Rs 92.21 crore as compared to a loss of Rs 272.66 crore in FY-15.

Total Expenditure (TE) in FY-16 increased 17.8 percent to Rs 2,675.19 crore (93.7 percent of revenue) from Rs 2,270.75 crore (97.1 percent of revenue) in FY-15.

Videocon d2h reported higher content costs for FY-16, which increased to 37.8 percent of revenue as compare to 36.2 percent of revenue in the previous year.

Fourth Quarter of 2016 numbers

The fourth quarter – quarter ended 31 March 2016 (Q4-16, current quarter), has been a great quarter for the company in terms of financial and operational performance.

For Q4-16 Videocon d2h added 5.9 lakh net subscribers. The company reported 5.2 percent quarter-over-quarter (q-o-q) growth in subscribers for Q4-16 at 118.6 lakh as compared to 112.7 lakh in the immediate trailing quarter Q3-16. Gross subscribers increased by 7.9 lakh in Q4-16. Incremental subscriber churn in Q4-16 increased 16 basis points to 0.58 percent year-over-year (y-o-y) from 0.42 percent but declined 15 basis points q-o-q from 0.73 percent.

Simple EBIDTA in the current quarter increased 33.7 percent y-o-y to Rs 216.20 crore (28 percent EBIDTA margin) from Rs 161.71 crore (25.9 percent margin) and increased 9.4 percent q-o-q from Rs 197.71 crore.

Subscription and activation revenue in the current quarter grew 20.9 percent y-o-y to Rs 706 crore and grew 6.2 percent q-o-q from Rs 665 crore. SAC in the form of hardware subsidies at Rs 1,776 per subscriber during Q4-16 was higher than the Rs 1,726 in the immediate trailing quarter. SAC in FY-15 averaged Rs 1,984

ARPU in the current quarter increased by Rs 12 y-o-y from Rs 202 in the corresponding year ago quarter to Rs 214 in Q4-16. ARPU in Q4-16 increased q-o-q by Rs 3 from Rs 211 in Q3-16.

Videocon d2h reported lower y-o-y and q-o-q loss in Q4-16. Loss in the current quarter declined to Rs 21.18 crore as compared to a loss of Rs 75.74 crore in the corresponding year ago quarter and a loss of Rs 22.05 crore in the immediate trailing quarter.

TE in Q4-16 increased 19.4 percent y-o-y to Rs 721.77 crore (93.6 percent of revenue) from Rs 605.55 crore (96.7 percent of revenue) and increased 5.4 percent q-o-q from Rs 684.58 crore (93.6 percent of revenue)

Content cost in Q4-16 was lower in terms of percentage of revenue at 37.5 percent as compared to 38.4 percent in Q4-15 and 38.5 in Q3-16.

Company speak

Videocon d2h executive chairman Dhoot said, “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realization and operating leverage benefit resulted in 31.5 percent Adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

“During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products,” revealed Dhoot.

Speaking on the business outlook for the DTH sector, Videocon d2h CEO Anil Khera said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

“In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million (8 crore) television homes,” added Khera.

May 25, 2016
FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

BENGALURU: Videocon d2h Limited (Videocon d2h) led by executive chairman Saurabh Dhoot reported 16.8 lakh net subscriber additions during the year ended 31 March 2016 (FY-16, current year). The company reported a subscriber base of 118.6 lakh at the end of the current year as compared to 101.8 at the end of the previous fiscal (FY-15), hence a growth of 16.5 percent in FY-16 as compared to FY-15. Gross subscribers increased by 26.5 lakh in FY-16. Incremental subscriber churn in the current year reduced by 7 basis points to 0.73 percent as compared to 0.80 percent in FY-16.The company claims to have added the largest number of subscribers amongst its peers in India for the sixth year in a row in FY-16.

Videocon d2h reported simple EBIDTA (Operating Profit, Earnings before Interest-Depreciation-Tax-Amortisation) of Rs 789.52 crore (EBIDTA margin of 27.6 percent) for FY-16 which was 32.5 percent more than the Rs 595.64 crore (25.5 percent EBIDTA margin) in FY-16.

Revenue in the current year increased 22.2 percent to Rs 2,855.86 crore from Rs 2,337.71 crore in the previous year. Subscription and Activation revenue in FY-16 grew 26.4 percent to Rs 2,607 crore compared to Rs 2,063 crore in FY-15.

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.

Average Revenue per User (ARPU) in FY-16 increased by Rs 11 from Rs 196 in the previous year to Rs 207 in FY-16.

The DTH major reported a lower loss in FY-16 at Rs 92.21 crore as compared to a loss of Rs 272.66 crore in FY-15.

Total Expenditure (TE) in FY-16 increased 17.8 percent to Rs 2,675.19 crore (93.7 percent of revenue) from Rs 2,270.75 crore (97.1 percent of revenue) in FY-15.

Videocon d2h reported higher content costs for FY-16, which increased to 37.8 percent of revenue as compare to 36.2 percent of revenue in the previous year.

Fourth Quarter of 2016 numbers

The fourth quarter – quarter ended 31 March 2016 (Q4-16, current quarter), has been a great quarter for the company in terms of financial and operational performance.

For Q4-16 Videocon d2h added 5.9 lakh net subscribers. The company reported 5.2 percent quarter-over-quarter (q-o-q) growth in subscribers for Q4-16 at 118.6 lakh as compared to 112.7 lakh in the immediate trailing quarter Q3-16. Gross subscribers increased by 7.9 lakh in Q4-16. Incremental subscriber churn in Q4-16 increased 16 basis points to 0.58 percent year-over-year (y-o-y) from 0.42 percent but declined 15 basis points q-o-q from 0.73 percent.

Simple EBIDTA in the current quarter increased 33.7 percent y-o-y to Rs 216.20 crore (28 percent EBIDTA margin) from Rs 161.71 crore (25.9 percent margin) and increased 9.4 percent q-o-q from Rs 197.71 crore.

Subscription and activation revenue in the current quarter grew 20.9 percent y-o-y to Rs 706 crore and grew 6.2 percent q-o-q from Rs 665 crore. SAC in the form of hardware subsidies at Rs 1,776 per subscriber during Q4-16 was higher than the Rs 1,726 in the immediate trailing quarter. SAC in FY-15 averaged Rs 1,984

ARPU in the current quarter increased by Rs 12 y-o-y from Rs 202 in the corresponding year ago quarter to Rs 214 in Q4-16. ARPU in Q4-16 increased q-o-q by Rs 3 from Rs 211 in Q3-16.

Videocon d2h reported lower y-o-y and q-o-q loss in Q4-16. Loss in the current quarter declined to Rs 21.18 crore as compared to a loss of Rs 75.74 crore in the corresponding year ago quarter and a loss of Rs 22.05 crore in the immediate trailing quarter.

TE in Q4-16 increased 19.4 percent y-o-y to Rs 721.77 crore (93.6 percent of revenue) from Rs 605.55 crore (96.7 percent of revenue) and increased 5.4 percent q-o-q from Rs 684.58 crore (93.6 percent of revenue)

Content cost in Q4-16 was lower in terms of percentage of revenue at 37.5 percent as compared to 38.4 percent in Q4-15 and 38.5 in Q3-16.

Company speak

Videocon d2h executive chairman Dhoot said, “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realization and operating leverage benefit resulted in 31.5 percent Adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

“During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products,” revealed Dhoot.

Speaking on the business outlook for the DTH sector, Videocon d2h CEO Anil Khera said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

“In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million (8 crore) television homes,” added Khera.

May 25, 2016