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Tag: PAT

  • Jio PAT at Rs 891 cr; FTTH beta trails encouraging

    Jio PAT at Rs 891 cr; FTTH beta trails encouraging

    BENGALURU:  Mukesh Dhirubhai Ambani’s largest startup company in the world – Reliance Jio Infocomm Limited (Jio) reported 6.1 percent growth in standalone profit after taxes (PAT) at Rs 891 crore for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the Rs 840 crore in the immediate trailing quarter (q-o-q) or Q4 2019. Standalone EBITDA for the period under review increased 8.2 percent q-o-q to Rs 4,686 crore (40.1 percent margin) as compared to Rs 4,329 crore (39 percent margin).

    The result of the quarter ended 30 June 2019 are not comparable with the corresponding figures for the previous period to the extent of the demerger of the Optic Fibre Cable Undertaking and transfer of Tower Infrastructure Undertaking of the Company pursuant to Composite Scheme of Arrangement with appointed date as 31 March 2019. The company says that the numbers for the year ago quarter are not comparable with the quarter under review and have been regrouped wherever necessary. Hence this report looks at the q-o-q comparison.

    Jio says in an earnings release that ongoing beta trials of JioGigaFiber services is in its final stages, and early signs have been very encouraging.

    FTTH Enterprise services are also being rolled out gradually reveals the company further.

    Reliance Industries Limited Ambani, chairman and managing director,

    said: “Growth in Jio mobility services has continued to surpass all expectations. In less than two years of commercial operations, Jio network carried almost 11 Exabytes of data traffic during the recently concluded fiscal quarter. Jio management is focused on giving unmatched digital experience at most affordable price to every citizen of the country, and accordingly expanding the network capacity and coverage to keep pace with demand. Jio has started connecting Enterprises with its next-gen connectivity solutions on the back of its extensive fiber network across the country. Beta trials of JioGigaFiber services have been very successful and the entire bouquet of smart home solutions would soon be rolled out to targeted 50 million households and beyond. Jio is committed to power the Digital Revolution in India through its technology platforms across communication, entertainment, commerce, financial services, education, healthcare, agriculture and beyond.”

    Jio reported 5.2 percent q-o-q growth in standalone operating revenue at Rs 11,679 crore for Q1 2020 as compared to Rs 11,106 crore in Q4 2019. The company says that its subscriber base as on 30th June 2019  was 33.13 crore (331.3 million, 3,313 lakh). It claims lowest churn in the industry at 0.97 percent per month. Jio says that ARPU during the quarter was Rs 122.0 per subscriber per month. It says that total wireless data traffic during the quarter was1,090 crore GB and total voice traffic during the quarter was 78,597 crore minutes.

    Let us look at the other numbers reported by Jio

    Total expenses for Q1 2020 grew 5.2 percent q-o-q to Rs 10,326 crore from Rs  9,818 crore. Network operating expenses in Q1 2020 grew 12.6 percent q-o-q to Rs 3,824 crore from Rs 3,401 crore. Access charges (Net) declined 22.6 percent to Rs 851 crore in the period under review from Rs 1,099 crore. License Fees/Spectrum charges increased 9.1 percent q-o-q to Rs 1,287 crore from Rs 1,180 crore. Employee benefits expense for the period declined 14.4 percent q-o-q to Rs 392 crore from Rs 458 crore. Net Finance charges for Q1 2020 increased 28.3 percent q-o-q to Rs 1,660 crore from Rs 1,294 crore. Selling and distribution expenses for the quarter increased 4.9 percent q-o-q to Rs 345 crore from Rs 329 crore. Other expenses declined 1 percent q-o-q to Rs 310 crore from Rs 313 crore.

  • Dish TV repeats profits in Q3 2018 post merger

    Dish TV repeats profits in Q3 2018 post merger

    BENGALURU: Indian direct to home (DTH) behemoth Dish TV India Ltd (Dish TV) reported profit after tax (PAT) of Rs 152.69 crore for the quarter ended 31 December 2018 (Q3 2019, quarter under review) as compared to loss of Rs 168.29 crore in the corresponding year ago quarter and a profit of Rs 19.73 crore in the immediate trailing quarter Q2 2109. These PAT numbers were boosted by certain income tax adjustments of prior years. Dish TV and Videocon d2h were merged on March 22 2018 and hence Q1 2019 was the first full reporting quarter for the merged entity.

    Dish TV’s operating profit or EBITDA in Q3 2019 was Rs 517.59 crore, 4.3 percent lower than Rs 540.62 crore in Q2 2019. The company reported a 4.8 percent q-o-q decline in operating revenue for the quarter under review at Rs 1,517.45 crore as compared to Rs 1,594.3 crore in Q2 2019.

    Dish TV’s subscriber additions picked up speed during the first quarter of fiscal 2019. The net number of 3,01,000 additions took Dish TV’s subscriber base to 2.33 crore in Q1 2019. The company picked up another net 2,00,000 subscribers in Q2 2019 to ramp up its subs base to 2.35 crore. For Q3 2019, the company reported net subscriber additions of 1,42,000 and the company closed the quarter under review with a subscriber base of 2.36 crore.

    Revenue breakup

    Subscription revenue declined 2.1 percent q-o-q in Q3 2018 to Rs 141.26 crore as compared to Rs 1,453.6 crore in Q3 2018. Advertisement revenue for the quarter under review increased 26.2 percent y-o-y to Rs 30 crore from Rs 23.8 crore. Bandwidth charges (revenue) reduced 24.4 percent y-o-y to Rs 32.4 crore in Q3 2019 from Rs 42.8 crore. Other income declined 59.4 percent y-o-y in Q3 2019 to Rs 4.25 crore from Rs 10.47 crore.

    Company speak

    Dish TV CMD Jawahar Goel said, “I am glad that all opposition to the tariff order has now finally been put to rest. We continue to strongly believe that the Regulation should minimise discriminatory pricing by ensuring a level playing field between cable and DTH platforms and should be beneficial for the entire industry thus leading to higher earnings going forward.”

    Goel, said further, “The Interim Budget 2019 gave an approximate Rs 230 billion spending stimulus to the consumption class comprising of small business owners, salaried employees and the middle class by way of tax exemptions. In addition, increased disposable income in the hands of farmers by way of PM Kissan Samman Nidhi scheme introduced in the budget should be a great boon for consumer sector companies like Dish TV. Further, the 150 thousand homes built under the PM Affordable Housing Scheme and every new house proposed to be built thereunder should be a potential pay-TV customer in the near future.”

    Talking about the current technological buzz, Dish TV group CEO Anil Dua said, “The Interconnection Regulations and Tariff Order, as notified by TRAI, will lay down new norms for the television industry ushering in an era of growth, transparency and non-discrimination."

    Let us look at the other numbers reported by Dish TV

    The merged Dish TV’s consolidated total expenditure reduced 8 percent y-o-y in Q3 2019 to Rs 1,483.13 crore from Rs 1,612.36 crore. Operating Expense in Q3 2019 reduced 4.2 percent y-o-y to Rs 812.05 crore from Rs 847.74 crore. Employee benefit expense during the quarter under review reduced 10.3 percent y-o-y to Rs 60.37 crore from Rs 67.3 crore in Q3 2018. Other expenses in Q3 2019 reduced 37.2 percent y-o-y to Rs 124.99 crore from Rs 198.92 crore .

  • Hathway in the red due to higher expenses, forex loss in second quarter

    Hathway in the red due to higher expenses, forex loss in second quarter

    BENGALURU: In the first quarter of the previous fiscal, restructuring at Indian multi system operator (MSO) Hathway Cable and Datacom Ltd (Hathway) had brought for it a positive bottomline. The pared company reported a profit of Rs 2.716 crore (including an exceptional item –gain from the sale of shares of Rs 1.713 crore) for the quarter ended 30 June 2017 (Q1 2018). The company improved its performance in the second quarter of the previous fiscal (Q2 2018) and reported profit after taxes of Rs 14.01 crore. However, in the quarter ended 30 September 2018 (Q2 2019, quarter under review), the company reported a loss of Rs 5.90 crore as compared to a loss of Rs 2.63 crore in the immediate trailing quarter (Q1 2019).

    Higher expenses which included higher finance costs and higher forex losses were chiefly responsible for the loss, besides of course, the fact that the Jio juggernaut has steamrolled all kinds of broadband internet service providers. The company reported almost same operating revenue (0.5 percent lower) for Q2 2019 at Rs 130.55 crore as compared to Rs 131.15 crore in Q2 2018. Due to higher other income of Rs 7.63 crore in the quarter under review as compared to Rs 5.93 crore in Q2 2018, Hathway’s total income was 0.8 percent more y-o-y at Rs 138.18 crore as compared to Rs 137.08 crore.

    Operating EBITDA during Q2 2019 at Rs 46.58 crore (35.6 percent of operating revenue) was 11.5 percent down y-o-y as compared to Rs 52.66 crore (40.2 percent of operating revenue).

    Let us look at the other numbers reported by Hathway

    Total expenditure in Q2 2019 was 144.08 crore or 110.4 percent of total income, 17.1 percent more than the Rs 123.07 crore (93.8 percent of operating revenue). Operating expenses in Q2 2019 was 5.4 percent lower y-o-y at Rs 31.10 crore (23.8 percent of operating revenue) as compared to Rs 32.89 crore (25.1 percent of operating revenue).

    Employee benefits expense for the quarter was Rs 11.29 crore (8.6 percent of of operating revenue) which was 7.2 percent higher y-o-y as compared to Rs 10.53 crore (8 percent of of operating revenue). Finance costs in Q2 2019 at Rs 32.22 crore (24.7 percent of operating revenue) was 32.2 percent higher y-o-y than Rs 20.19 crore (15.4 percent of operating revenue) in Q2 2018.

    Other expenses at Rs 41.48 crore (31.8 percent of operating revenue) was 18 percent higher y-o-y than Rs 35.07 crore (26.7 percent of operating revenue). Other expenses included a higher forex loss of Rs 7.2 crore in Q2 2019 as compared to a forex loss of Rs 1.28 crore in Q2 2018.

  • Dish TV encores profits in 2nd quarter post merger, proposes maiden dividend of 50%

    Dish TV encores profits in 2nd quarter post merger, proposes maiden dividend of 50%

    BENGALURU: Indian direct to home (DTH) behemoth Dish TV India Ltd (Dish TV) reported profit after tax (PAT) of Rs 19.7 crore for the quarter ended 30 September 2018 (Q2 2019, quarter under review) as compared to PAT of Rs 22.5 crore in the immediate trailing quarter Q1 2109. Dish TV and Videocon d2h were merged on 22 March 2018 and hence Q1 2019 was the first full reporting quarter for the merged entity. The board of directors of the company have proposed a dividend of Rs 0.50 per fully paid up subscriber and issued equity share of Re 1 each. This is the first ever dividend proposed by the DTH major.

    Since results of the year ago quarter are not comparable, a quarter on quarter (q-o-q) comparison of the numbers of the joint entity has been done here. Dish TV’s operating profit or EBITDA in Q2 2019 was Rs 540.6 crore, 2.9 percent lower than Rs 556.8 crore in Q1 2019. The company reported a 3.7 percent q-o-q decline in operating revenue for the quarter under review at Rs 1,594.3 crore as compared to Rs1,655.6 crore in Q1 2019.

    Dish TV’s subscriber additions picked up speed during the first quarter. The net number of 301 thousand additions took Dish TV’s subscriber base to 2.33 crore in Q1 2019. The company picked up another net 200,000 subscribers in Q2 2019 to ramp up its subs base to 2.35 crore.

    Subscription revenue declined 2.4 percent q-o-q increase in Q2 2018 to Rs 1,453.6 crore from Rs 1,489.3. ARPU for the quarter declined to Rs 207 from Rs. 214 the previous quarter. Advertisement revenue for the quarter under review declined 34.8 percent q-o-q to Rs 22.6 crore Rs 34.6 crore. Bandwidth charges (revenue) reduced 3.4 percent q-o-q to Rs 37.4 crore in Q2 2019 from Rs 38.7 crore. Other income declined 26.4 percent q-o-q in Q2 2019 to Rs 80.7 crore from Rs 93.1 crore.

    Company speak

    Dish TV CMD Jawahar Goel said, “We remain extremely confident about our business and our strong financials give us the courage to compete against anyone in this space. That said, we continue to focus on growth with profitability keeping in mind our objective of maximising shareholder returns while aggressively investing in the business.”

    Talking about future competitive scenario in the TV distribution space, Goel, said, “With limited takers for fibre or fixed line broadband, watching television through IPTV is going to be even scarce. In fact, post running an internal analysis, we see less than 1 percent of our subscriber base to be vulnerable to any kind of IPTV threat in the forseeable future. Our competitive strength in the rural market ring fences our subscriber base almost completely.”

    Talking about the current technological buzz, Dish TV group CEO Anil Dua, said, “There is change but a lot of exaggeration as well. We acknowledge the new choices that the television consumer is getting exposed to but you can’t undermine the unique dynamics of India as a consuming nation. The television consumer likes flexibility but not at the cost of affordability. We still are a nation with 98 percent of the households having a single TV at home and with more than 79 percent CRTVs. Our soon to be launched ‘SMRT Stick’ will be the ideal value for money offering for TV households to convert their CRTVs into smart TVs and experience OTT content.”

    Let us look at the other numbers reported by Dish TV

    The merged Dish TV’s consolidated total expenditure reduced 4.1 percent q-o-q in Q2 2019 to Rs 1,053.7 crore from Rs 1,098.9 crore. Cost of gods and services in Q2 2019 reduced 1.9 percent q-o-q to Rs 867.2 crore from Rs 884.1 crore. Personnel cost during the quarter under review increased 8.6 percent q-o-q to Rs 62.6 crore from Rs 57.7 crore in Q1 2019. Other expenses in Q1 2019 reduced 21.2 percent q-o-q to Rs 123.8 crore from Rs 157 crore from Rs 195.97 crore.

  • Siti reports improved numbers for Q1

    Siti reports improved numbers for Q1

    BENGALURU: Backed by higher subscription revenue and a 93 percent collection efficiency, Indian multi-systems operator (MSO) Siti Networks Limited (Siti) posted 146 percent higher operating profit (EBITDA) for the quarter ended 30 June 2018 (Q1 2019, quarter or period under review) as compared to the corresponding quarter of the previous fiscal year Q1 2018. The company says that collection efficiency in July 2018 has increased to 97 percent. For the immediate trailing quarter (Q4 2018), the MSO had reported a collection efficiency of 95 percent.

    Siti’s operating profit (without considering activation charges) for Q1 2019 increased to Rs 54.9 crore as compared to Rs 22.3 crore in Q1 2018. The company attributes the growth in EBIDTA to a 26.3 percent surge in subscription revenue to Rs 214.9 crore in Q1 2019. EBITDA including activation declined 24.1 percent during the period under review to Rs 76.71 crore from Rs 101.01 crore in Q1 2019.

    Total comprehensive loss (TCL) for the period was higher at Rs 56.96 crore as compared to Rs 15.19 crore in corresponding quarter of the previous year. However, on quarter on quarter basis Rs.70 Cr has gone down to Rs.57 Cr, an improvement of 18.8 per cent. It must be noted that all numbers mentioned in this report are consolidated unless stated otherwise.

    Siti’s consolidated total income in Q1 2019 was Rs 352.45 crore as compared to Rs 371.11 crore in Q1 2018. Consolidated operating revenue in Q1 2019 was Rs 350.05 crore as compared to Rs 364.96 crore in Q1 2018.

    The MSO says that it has added 3.5 lakh (0.35 million, 0.035 crore) digital subscribers in Q1 2019 and has reached a 117 lakh (11.7 million, 1.17 crore) active digital subscriber base. Siti had added 31 lakh (3.1 million, 0.31 crore) digital subscribers in fiscal 2018 (year ended 31 March 2018) It claims to have added 40,000 new HD subscribers to reach a HD subscriber base of 3.56 lakh (0.356 million, 0.0356 crore) during the period under review.

    Let us look at the other numbers reported by Siti

    Siti’s consolidated total expenditure (TE) increased 10 percent in Q1 2019 to Rs
    406.72 crore from Rs 369.52 crore in Q1 2018. Carriage sharing, pay channels and related costs in Q1 2019 increased 5.4 percent to Rs 164.46 crore from Rs 156.06 crore in Q1 2018. Employee benefit expense during the quarter under review reduced 12.9 percent to Rs 20.41 crore from Rs 23.45 crore in the corresponding quarter of the previous year. Other expense in Q1 2019 increased 3.5 percent to Rs 87.10 crore from Rs 84.18 crore in Q1 2018.

    Company speak

    Siti chief business transformation officer Rajesh Sethi said, “Siti had a great start to FY 2019 with strong improvement in all operational metrics. Our ‘Customer First’ strategy helped drive superlative 146 percent EBITDA growth coupled with expansion of 892 bps in the margins. While we increased our subscription revenue by nearly 26 percent year on year, we have further initiated an ARPU increase program and the results will be visible in the coming quarters. With the New Tariff Order Notification, we are well positioned to move to the new regime. Our systems and processes are ready for the seismic transformations of the last mile operations. In FY 2019 we plan to drive efficiencies along with solid EBITDA and margins growth, in line with our core strategy of profitable and sustainable growth.”

  • Dish TV reports profits in first full quarter post merger with Videocon d2h

    Dish TV reports profits in first full quarter post merger with Videocon d2h

    BENGALURU: Indian direct to home (DTH) behemoth Dish TV India Limited (Dish TV) reported profit after tax (PAT) of Rs 22.5 crore for the quarter ended 30 June 2018 (Q1 2019, quarter under review). Dish TV and Videocon d2h were merged on 22 March 2018 and hence Q1 2019 was the first full reporting quarter for the merged entity. In the immediate trailing quarter – Q4 2018, the company had reported more than four times the PAT of Q1 2019 at Rs 118.2 crore, but that could be attributed to differed tax to the extent of Rs 147.1 crore. In Q1 2019, the company reported differed taxes to the extent of Rs 1.8 million.

    Since results of the year ago quarter are not comparable, a quarter on quarter (q-o-q) comparison of the numbers of the joint entity has been done here. Operating profit or EBITDA in Q1 2019 was Rs 556.8 crore as compared to an adjusted EBITDA of Rs 400.6 crore in Q4 2018. The company says in its earnings release that adjusted EBITDA is EBITDA adjusted for merger expenses to the tune of Rs. 600 million booked in Q4 2018 that have been excluded while calculating adjusted EBITDA.

    The company reported an eight percent q-o-q increase in operating revenue for the quarter under review at Rs1,655.6 crore as compared to Rs 1,532.4 crore in Q4 2018. Dish TV says that subscriber additions picked up speed during the first quarter. The net number of 301 thousand additions took Dish TV’s subscriber base to 2.33 crore.

    The company says that higher revenue is attributed to an 8.1 percent q-o-q increase in subscription revenue for Q1 2018 at Rs 1,489.3 as compared to Rs 1,377.1 crore. Incrementally higher HD viewership, lower discounts at package levels and a price hike across a majority of recharge packages brought about this increase in subscription revenues during the quarter. Dish TV says that 44 percent of all subscriber additions were of High Definition and that in total, HD subscribers formed 17 percent of the total net base of the company. ARPU for the quarter increased to Rs 214 from Rs 201 in the previous quarter.

    Dish TV CMD Jawahar Goel said, “Price hikes initiated during the quarter were a result of some pricing power gathered over the months. It is a positive sign and should stand us in good stead in the year ahead. The first quarter often sets the pace for the full year. Our performance in the first quarter gives us the confidence to deliver in line with our expectations going forward.”

    “We remain positive on achieving the Rs 5.1 billion synergies that we have envisaged from the merger for the current fiscal. Part of the estimated synergies are going to be due to a more rational programming cost. Our interactions with our broadcasting partners so far reinforce our belief in the strength of the new Dish TV platform,” added Goel.

    Let us look at the other numbers reported by Dish TV

    The merged Dish TV’s consolidated total expenditure reduced 2.9 percent q-o-q in Q1 2019 to Rs 1,098.9 crore from at Rs 1,131.7 crore in Q4 2018. Cost of goods and services in Q1 2019 increased 1.7 percent q-o-q to Rs 884.1 crore from Rs 868.9 crore. Employee benefit expense during the quarter under review reduced 13.7 percent to Rs 57.7 crore from Rs 66.8 crore in Q4 2018. Finance cost in Q1 2019 increased 33.5 percent q-o-q to Rs 177.5 crroe from Rs 132.9 crore. Other expenses in Q1 2019 reduced 19.9 percent q-o-q to Rs 157 crore from Rs 195.97 crore.

  • GTPL reports higher numbers for Q3 2018

    GTPL reports higher numbers for Q3 2018

    BENGALURU: Indian multi system operator (MSO) and broadband internet services (broadband) provider GTPL Hathway Limited (GTPL) has reported a year-on-year (yoy) growth in standalone as well subsidiary companies revenues, operating profits and net profits for the quarter ended 31 December 2017 (Q3 2018, quarter, quarter under review). GTPL’s broadband internet business – GTPL Broadband is a 100 per cent subsidiary of GTPL. The company owns a 51 percent stake in GTPL Kolkata Cable & Broadband Pariseva Limited (KCBPL).

    GTPL standalone

    On a standalone basis, GTPL reported 22.7 per cent yoy growth in total revenue for Q3 2018 to Rs 195.50 crore from Rs 159.28 crore. EBITDA including other income in the current quarter was 46.5 per cent higher yoy at Rs 63.44 crore (32.4 per cent margin) as compared to Rs 43.31 crore (27.2 per cent margin). Net profit after tax more than quintupled (5.7 times) yoy in Q3 2018 to Rs 23.74 crore (12.1 per cent margin) from Rs 4.16 crore (2.6 per cent margin).

    The company reported 28.8 percent yoy growth in subscription revenue for Q3 2018 at Rs 106.3 crore from Rs 82.5 crore. Placement revenue increased 12.2 per cent yoy in the quarter to Rs 58.7 crore from Rs 52.3 crore. Activation revenue increased 20.8 per cent yoy in Q3 2018 to Rs 18 crore from Rs 14.9 crore.

    GTPL says that it has seeded 1.80 lakh  (1 crore = 10 crore = 100 lakh) set top boxes and increased CATV digital active subscribers by 1.40 lakh in the current quarter. It says that CATV digital paying subscribers increased by 1.10 lakh to 84.6 lakh in Q3 2018 as compared to 82.8 lakh subscribers in the immediate trailing quarter Q2 2018.

    The phase-wise breakup of GTPL’s digital paying subscribers is 5.6 lakh, 16.6 lakh, 20.4 lakh and 24.9 lakh for DAS phases I, II, III and IV respectively. Average revenue per user (ARPU) in Q3 2018 with respect to Q2 2018 has increased by Rs 2 to Rs 51 and by Rs 3 to Rs 61 in phases IV and III respectively; has remained stable at Rs 101 and Rs 96 for DAS phases I and II respectively.

    GTPL Broadband

    The company says that GTPL Broadband’s total income in Q3 2018 increased 7 per cent yoy to Rs 34.2 crore from Rs 32 crore. EBITDA grew 31 per cent yoy to Rs 10.1 crore from Rs 7.7 crore. PAT increased 9 per cent yoy to Rs 3.9 crore in the current quarter from Rs 3.6 crore.

    The company claims that GTPL Broadband has added 12,000 broadband internet subscribers in Q3 2018 as compared to 10,000 in Q2 2018. Its broadband internet subscriber base at the end of Q3 2018 was 2.72 lakh. Broadband internet ARPU in the quarter remained steady at Rs 487 as compared to Q2 2018 and increased from Rs 472 in Q2 2017.

    GTPL Kolkata Cable & Broadband Pariseva Limited (KCBPL)

    KCBPL’s total income grew 61 per cent yoy to Rs 44.7 crore from Rs 27.8 crore. Subscription CATV revenue increased 69 per cent yoy to Rs 30.3 crore in Q3 2018 from Rs 17.9 crore. Placement revenue in the current quarter grew 12 percent yoy to Rs 7.7 crore from Rs 6.9 crore. Activation revenue in Q3 2018 almost tripled (2.93 times) yoy to Rs 4.7 crore from Rs 1.6 crore.

    KCBPL’s EBITDA grew 7.17 times yoy in Q3 2018 to Rs 16 crore from Rs 2.2 crore. The company reported PAT of Rs 2.2 crore in Q3 2018.

    Also Read :

    GTPL Hathway pockets Rs 480-mn Gujarat govt contracts

    GTPL Hathway reports higher numbers and flat q-o-q ARPUs

    GTPL launches high-speed internet on GPON FTTX technology

  • PVR numbers up on higher ticket price in third quarter

    PVR numbers up on higher ticket price in third quarter

    BENGALURU: Despite lower admits and occupancy during the quarter ended 31 December 2017 (Q3 2018, the quarter under review), Indian entertainment and exhibition company PVR Ltd (PVR) reported higher revenue due to higher ticket prices. In its investor presentation, the company reported 2.8 per cent year-on-year (yoy) drop in admits during Q3 2018 at 1.74 crore as compared with Rs 1.79 crore in Q2 2017 and a yoy decline in occupancy to 29.1 per cent from 32 per cent. The company reported an increase in average ticket price per show to Rs 212 during the quarter under review from Rs 199 during the corresponding year ago quarter. PVR says that the top-five movies contributed 50 per cent to the gross box office in Q3 2018 as against 52 per cent in Q3 2017. The occupancy of top-five movies in Q3 2018 was 37 per cent as against 41 per cent in Q3 2017.

    PVR’s revenue from operations increased 5 per cent yoy in Q3 2018 to Rs 557.25 crore from Rs 530.88 crore. Total Income increased 3.4 per cent yoy to Rs 560.46 crore in Q3 2018 from Rs542.02 crore. The company says that other operating income in Q3 2017 included government subsidy of Rs 8.61 crore provided by various state governments. In the quarter under review, this component has not been accounted for on account of lack of clarity on refund mechanism for the tax exemptions under the new GST regime.

    PVR’s EBIDTA (including other income) increased 13.7 per cent yoy during the quarter under review to Rs 103.55 crore (18.8 per cent margin of total revenue) from Rs 91.10 crore (16.8 per cent margin of Total revenue). Net profit after tax (PAT) increased 24 per cent yoy in Q3 2018 to Rs 29.16 crore from Rs 23,52 crore. Total comprehensive income during the quarter under review increased 20.8 per cent yoy to Rs 28.87 crore from Rs 23.89 crore.

    Let us look at the other numbers reported by PVR

    PVR reports revenue from two segments–movie exhibition and others. The movie exhibition segment saw 6.9 per cent yoy increase in operating revenue to Rs 546.01 crore from Rs 510.94 crore. The segment had 17.4 per cent yoy increase in operating results at Rs 41.44 crore from Rs 35.27 crore. Others segment revenue saw 51.9 per cent yoy decline in revenue to Rs 17.85 crore from Rs 37.08 crore. Others segment operating profit grew 220.8 per cent to Rs 3.08 crore from Rs 0.96 crore during corresponding year ago quarter.

    PVR’s total expenditure during the quarter under review was up by 1.9 per cent yoy at Rs 515.55 crore as compared to Rs 505.77 crore. Finance cost was up 3.8 per cent yoy to Rs 21.17 crore in Q3 2018 from Rs 20.40 crore.

    Movie exhibition cost in Q3 2018 increased 13.4 per cent yoy to Rs 132.28 crore from Rs 116.69 crore. Cost of consumption of food and beverages in the quarter rose by 9.3 per cent yoy to Rs 37.90 crore from Rs 34.66 crore.

    Employee benefits expense in Q3 2018 increased by 8 per cent yoy to Rs 62.17 crore from Rs 57.57 crore. Rent expenses during the quarter were almost flat (increased by 0.2 per cent) yoy to Rs 99.356 crore from Rs 99.13 crore. Other expenses in Q2 2018 declined by 12.4 per cent yoy to Rs 125.21 crore from Rs 142.87 crore.

  • DTH’s year of consolidation

    DTH’s year of consolidation

    MUMBAI: It would be safe to say that this was the year of the big DTH challenge. India’s cable TV multi system operators (MSOs) could not go into many phase IV areas and DTH stepped in wherever analogue broadcast signals were switched off following the crossing of the digital addressable system (DAS) deadline. Whether it was Tata Sky, FreeDish, Videocon d2h, Airtel Digital TV, Sun Direct or Dish TV, they all played a part.

    The going, however, was not as smooth as it could have been. High capex and opex and low ARPUs continued to dog the video distribution vertical making it an extremely low or no-margin business. While in the early days customer acquisition was the driver for most distribution platform operators, currently their eye has been on cost-efficiencies. This was evident from the ongoing overtures three of the players were making to others. Dish TV and Videocon d2h were already going through the throes of merging, the Anil Ambani-owned Reliance Big DTH was shopping around having conversations with almost every player, and there were talks of Airtel and Tata Sky possibly getting into bed with each other.

    The first nearly came to pass in 2017 with the two companies getting clearances from all quarters—government, courts and company law board—but getting stuck over the year end because of a technical difficulty. Reliance Big TV was sold to an IT and electronics company Veecon that sells security scanners and tablets–the wealth of its promoters is rumoured to be from selling religious lockets. Veecon said it would renew the Big TV licence by giving the requisite bank guarantees and ensure TV continuity for its approximately 1.2 million customers and jobs for nearly 500 people. It also announced that it would take Reliance Big DTH free to air (FTA) and announced a partnership with Sri Adhikari Brothers to launch a clutch of channels that would prove to be drivers of the platform. How Veecon will pay off Big TV’s payments to broadcasters was not clear at the time of writing and will decide whether the platform will ever take off.

    However, its announcement came at a time when the government had shut the door for private broadcasters and DD FreeDish, which had shown gee whiz growth rates, had come up as a powerful DTH player. New Ministry of Information and Broadcasting (MIB) minister Smriti Irani refused to make channel renewals for which several broadcasters took it to the Telecom Disputes Settlement Appellate Tribunal (TDSAT). An interim order gave the channels, whose licence was soon to expire, relief that they could continue by paying similar prices till Prasar Bharat came up with an alternative proposal and a convincing explanation to throw out private TV channels off DD Free Dish. It is expected that Prasar Bharati will formulate its new policy akin to the FM radio auction wherein 50 per cent of revenue is shared, apart from the bid amount, in e-auctions. Talk internally is that none of this would happen and DD Free Dish is most likely going to be used solely to relay government channels.

    Media reports also said sometime in the second half of the year that there could be more synergies between the Tatas and News Corp-promoted Tata Sky and Airtel Digital TV with possible merger talks taking place. That hasn’t happened as of now but the Airtel group did end up buying out certain telecoms asset of the Tatas.

    Also, private equity firm Warburg Pincus announced its decision to own 20 per cent stake in Airtel Digital TV for $350 million, leaving 80 per cent with Airtel’s promoters. That valued the Mittal-owned DTH service at a whopping $1.7 billion, which was mouthwatering news for the DTH pioneers. By September, Airtel claimed ownership to 14 million subscribers with revenue of $550 million.

    The year was significant for the fact that the DTH operators led by Tata Sky and Airtel Digital decided they had to take a tour of the court. The Harit Nagpal-led operator challenged the Telecom Regulatory Authority of India’s (TRAI) order on tariff and the reference interconnect regulations. The order stated that all stakeholders must abide by rates fixed by broadcasters. Joining Tata Sky in court was Airtel.

    Dish TV, the oldest DTH player in the country, appointed Anil Dua as its new CEO even as the company’s integration with Videocon d2h was on the anvil. Dish TV’s CMD Jawahar Goel raised an alarm over Star India’s monopoly in cricket events that, after its acquisition of the rights for the Indian Premier League (IPL), would force DTH players to include Star Sports channels and result in the broadcaster pricing the sports channels exorbitantly. No government reaction was forthcoming on this issue. Dish TV also took Star channel Life Ok to the TDSAT claiming that it could not rebrand itself as an FTA from a pay channel without sufficient intimation. Life Ok is today Star Bharat and a leading channel in BARC viewership ratings, riding on the expanded viewership courtesy Doordarshan’s FTA KU-band platform called DD FreeDish.

    For the quarter ended 31 March 2017, not only did subscriber additions dip drastically, but were also the lowest for a quarter in the financial year 2016-17. Airtel, Dish TV and Videocon saw total addition of just 8.33 per cent to 41.13 million for the concerned financial year. By 30 September 2017, there were just 2.47 million additions to the DTH industry as per TRAI, which was way below the 3.37 million it gained in the same six months in 2016. Moreover, active subscribers added in the July-September quarter were just 0.78 million, half of the figure from the corresponding quarter a year ago. Dish TV, Airtel DTH and Videocon d2h make up 63-65 per cent of the total active subscribers while Tata Sky holds about 21 per cent and Sun Direct 11 per cent. DD Free Dish is estimated to have 22 million subscribers and is expected to touch 40 million in two to three years.

    The second half of the year saw the introduction of the goods and services tax (GST) that gave a breather to those consuming cable and DTH services. Whereas customers once paid anything between 10-30 per cent as entertainment tax as well as a 15 per cent service tax, it was now fixed at 18 per cent. The Punjab government also announced that it would be adding a new entertainment tax to cable and DTH connections with the latter having to bear Rs 5 a month.

    Sun Direct is a major DTH player in the south holding about 40 per cent of the area. It also makes up 97 per cent of its total subscribers. Sun Direct took up an HEVC media solution from Harmonic to increase its HD channel number to 80.

    Profit after tax (PAT) for Videocon stood at Rs 168 million for the quarter ended 30 September 2017, which was just Rs 12 million for the previous quarter and Rs 148 million for the corresponding quarter a year ago. Dish TV, however, was in the red with net loss of Rs 178.7 million for the quarter as against PAT of Rs 689.6 million for the same quarter a year ago. During the quarter ended 30 September 2017, Airtel reported PAT of Rs 12,990 million down from Rs 27,350 million from a year ago.

    Videocon d2h and Airtel showed good average revenue per user (ARPU) numbers in 2017. The former raked in Rs 212 for the quarter ended 30 September 2017 from 13.25 million subscribers (a 0.21 million increase from the previous quarter). The ARPU for the previous quarter was Rs 198 while a year ago quarter was Rs 209. Dish TV’s ARPU for the same quarter was Rs 149, a rupee higher than the trailing quarter. It had a total of 15.1 million subscribers. ARPU for Airtel Digital TV stood at Rs 233 in the respective quarter, up from Rs 228 in the previous quarter and Rs 232 in the year ago quarter. Tata Sky does not release its financial numbers but analysts pinpoint its ARPU to be close to Rs 300.

    Dish TV introduced numerous value-added services (VAS) to encourage more viewers such as the Dance Active and Disney Active series, cardless STBs, 32 educational channels under Swayam Prabha. Early on in the year, it cut the rate of its base pack to Rs 33 a month to counter the free services by DD Free Dish. It even went to the extent of allowing people to curate their own packs by picking individual channels. Dish TV added 23 channels, which included nine HD ones.

    Tata Sky came up with a Make My HD pack for as low as Rs 30 per month and a regional HD Access pack at Rs 50 per month for users subscribed to regional SD channels. The channel targeted the south market with a South special pack at Rs 290. Dish TV campaigned for HD in all homes by removing the access fee on it and advertising a cost as low as Rs 169 per month (excluding taxes). Countering DD Free Dish, the oldest DTH player also introduced an FTA pack with a price translating to Rs 32 a month.

    On the technology front, Airtel’s hybrid STB was officially the first to launch in the market, bringing to consumers the best of both worlds–satellite channels and content available on the internet. The STB also came preloaded with Netflix and YouTube allowing even a regular TV to turn ‘smart’ courtesy an inbuilt wi-fi feature and Google voice search. Dish TV launched its new card-less security feature with Verimatrix as well as an artificial intelligence-enabled chatbot called ADI.

    For the coming year, the industry will likely see the outcome and growth of the first merger between Dish TV and Videocon and the synergies they bring to the industry. FreeDish is expected to be a big player in the remote parts of the country, especially with FTA broadcasters dancing to their tune. DTH operators have to still work hard to increase ARPU and maintain profitability.

     

  • Higher subscription & activation lead Den’s turnaround in Q2

    Higher subscription & activation lead Den’s turnaround in Q2

    BENGALURU: Indian multi system operator (MSO) Den Network (Den) reported growth in operating revenue, operating profit (EBIDTA) and profit after tax (PAT) for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter. In Q2-17 (the corresponding year ago quarter), the company had reported a loss. The change to black from red in the current quarter was driven by a reported 22.3 percent increase in operating revenue and an operating profit for its cable distribution (cable) business. Den’s cable business performed well due to cost optimisation measures and the company accelerating its subscription collections. The company claims in its earnings release that its subscription collection efficiency in Q2-18 was 93 percent.

    Den’s operating revenue for Q2-18 was Rs 3,277.9 million, 20.3 percent more y-o-y as compared to Rs 2,724.4 million. Total income including other revenue grew 19.6 percent y-o-y to Rs 3,349 million from Rs 2,800.4 million. The company reported 2.84 times the EBIDTA for Q2-18 at Rs 815.5 million as compared to Rs 287.5 million for the corresponding year ago quarter. PAT for the current quarter was Rs 11.1 million as compared to a loss of Rs 439.6 million in Q2-17.

    Cable business revenue in Q2-18 was Rs 3,079.9 million as compared to Rs 2,517.4 million in Q2-17.Cable business operating profit in the current quarter was Rs 277.5 million as compared to a an operating loss of Rs 306.7 million in Q2-17. Cable business subscription revenue increased 24 percent y-o-y to Rs 164 million from Rs 132 million. Activation revenue increased more than 7 times (7.3 times) to Rs 37 million from Rs 5 million. Placement revenue increased 2 percent y-o-y to Rs 88 million from Rs 86 million. Broadband revenue declined 8 percent y-o-y to Rs 19 million from Rs 21 million. Broadband EBIDTA loss was lower at Rs 1 million in Q2-18 as compared to an operating loss of Rs 2 million in Q2-17.

    Den says that it has deployed 0.25 million digital set top boxes in Q2-18 and its digital subscriber base (including associates) stands at 11 million. Broadband subscriber base in the current quarter was 0.205 million as compared to 0.14 million in Q2-17. Broadband ARPU declined in Q2-18 to Rs 664 from Rs 775 in Q2-17.

    Total expenditure in Q2-18 was almost flat (increased 0.6 percent) y-o-y to Rs 3,261.2 million from Rs 3,240.3 million. The company has reduced employee costs in the current quarter by 17.1 percent to Rs 273.8 million from Rs 330.2 million. Placement fees expense in Q2-18 declined 22.5 percent y-o-y to Rs 107 million from Rs 138 million. Other expenses declined 3.7 percent y-o-y to Rs 756.9 million from Rs 786.2 million. Content costs in the current quarter increased 12 percent y-o-y to Rs 1,324.7 million from Rs 1,182.5 million.