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Tag: Saurabh Dhoot

  • Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    BENGALURU: The addition of 6.1 lakh gross subscribers and 4.6 lakh net subscribers in Q1-2016 (quarter ended 30 June, 2015), coupled with higher average revenue per user (ARPU) for Q1-2016, resulted in a y-o-y 32.1 per cent growth in subscription revenue and 23.3 per cent growth in revenue from operations (TIO) in Q1-2016 for Videocon d2h.

     

    On a q-o-q basis, subscription revenue increased 3.7 per cent, while TIO increased six per cent. The company also reported a marked fall in finance costs and consequently, the company’s loss in the current quarter more than halved to Rs 24.4 crore as compared to the Rs 55.8 crore in Q1-2015 and was less than a third of the Rs 75.7 crore in Q4-015.

     

    Videocon achieved strong subscription revenue growth of 32.1 per cent to Rs 599.61 crore (90.5 per cent of TIO) in Q1-2016 as compared to the Rs 453.77 crore (84.4 per cent of TIO) in Q1-2015 and growth of 3.7 per cent as compared to the Rs 578.33 crore (92.5 per cent of TIO) in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    TIO in Q1-2016 at Rs 662.83 crore was 23.3 per cent more than the Rs 537.65 crore in Q1-2015 and six per cent more than the Rs 625.27 crore in Q4-2015.

     

    Average revenue per user (ARPU) in Q1-2016 at Rs 205.30 was 9.7 per cent more than the Rs 187.14 in the corresponding year ago quarter and was 1.5 per cent more than the Rs 202.17 in Q4-2015. (Conversion rate from 1 dollar = 62.59 Indian rupee for all the three quarters).

     

    The company’s finance costs in Q1-2016 reduced 26.8 per cent to Rs 76.5 crore (11.5 per cent of TIO) as compared to the Rs 104.5 crore (19.4 per cent of TIO) in the corresponding year ago quarter and was an impressive 41.2 per cent lower than the Rs 130.1 crore (20.8 per cent of TIO) in Q4-2015. 

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to declare a strong set of results for the quarter ended 30 June, 2015 and are on track to achieve the guidance provided for fiscal 2016. With a strong subscriber growth outlook, DTH sector gaining market share over cable and an improving ARPU scenario; we believe we are just at the beginning of a multi-year strong growth opportunity.”

     

    During this quarter, Videocon d2h added three proprietary channels and also set up an advertising team to sell ad inventory for the same. These channels are d2h nursery rhymes, d2h Cinema HD and a music channel. Additionally, it also added three Active services, namely, Active Kids, Active Games and Active Learning during the quarter, which have started getting traction from customers.

     

    Dhoot added, “I am happy to share that we recently set up an advertising team to sell ad inventory on our own proprietary channels. We are beginning to see an encouraging response from multiple advertisers.”

     

    Issuance of bonus shares

     

    The board of directors of the company, at their meeting held on 22 July, 2015, determined that the Initial Performance Hurdle has been achieved and satisfied and hence has approved, subject to approval of Ministry of Information and Broadcasting and such other approvals and consents as may be required under the applicable regulations, the issuance of 23,360,000 equity shares (equivalent to 5,840,000 ADSs) to the shareholders of the company as of the date of the Contribution Agreement and the issuance of 3,999,984 equity shares (equivalent to 999,996 ADSs) to the sponsor by way of a bonus issue, in accordance with the terms of the Contribution Agreement and the Articles of Association of the Company. Further, Saurabh Dhoot also becomes entitled to receive 1,400,000 (equivalent to 350,000 ADSs) equity shares of the Company.

     

    The Initial Performance Hurdle was that the last sales price of the Videocon d2h ADSs on NASDAQ (converted into Indian rupees on each such day at the Indian Rupee/U.S. Dollar Exchange Rate on such date) for 20 trading days in a 30-trading day period equals or exceeds 125 per cent of the Listing Price (i.e. price per ADS issued to the SEAC Distribution Record Holders converted into Indian rupees at the Indian Rupee/U.S Dollar Exchange Rate prevailing on the Closing Date, March 31, 2015).

     

    Let us look at the other numbers reported by Videocon d2h

     

    The company’s EBIDTA (operating profit) in Q1-2016 increased 26.3 per cent to Rs 187.43 crore (28.3 per cent margin) from Rs 148.45 crore (27.6 per cent margin) in Q1-2015 and increased 15.9 per cent from Rs 161.77 crore (25.9 per cent margin) in Q4-2015.

     

    Videocon d2h total expenditure (TE) in Q1-2016 increased 20.3 per cent to Rs 618.1 crore (93.3 per cent of TIO) as compared to the Rs 513.7 crore (95.5 per cent of TIO) in Q1-2015 and increased 2.2 per cent as compared to the Rs 604.5 crore (96.7 per cent of TIO)

     

    Videocon d2h’s operating expense in Q1-2016 at Rs 379.1 crore (57.2 per cent of TIO) was 22.7 per cent more than the Rs 309 crore (57.5 per cent of TIO) in Q1-2015 and was 4.2 per cent more than the Rs 363.7 crore (58.2 per cent of TIO) in Q4-2015.

     

    The company says that its content cost as percentage of revenue in Q1-2016 was 37 per cent as compared to 32.7 per cent in Q1-2015 and 38.4 per cent in the immediate trailing quarter.

     

    Videocon d2h’s selling and distribution expense in the current quarter increased 17.8 per cent to Rs 50.9 crore (7.7 per cent of TIO) as compared to the Rs 43.2 crore (8 per cent of TIO) in Q1-2015 and increased 10.4 per cent as compared to the Rs 46.1 crore (7.4 per cent of TIO) in Q4-2015.

     

    Administrative and other expense in Q1-2016 increased 15 per cent to Rs 14.6 crore (2.2 per cent of TIO) as compared to the Rs 12.7 crore (2.4 per cent of TIO) in Q1-2015, but reduced by 42.3 per cent as compared to the Rs 25.3 crore (four per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in Q1-2016 increased 26.6 per cent to Rs 30.9 crore (4.7 per cent of TIO) as compared to the Rs 24.4 crore (4.5 per cent of TIO) in Q1-2015 and was 8.4 per cent more than the Rs 28.5 crore (4.6 per cent of TIO) in Q4-2015.

     

    Videocon d2h CEO Anil Khera said, “We believe around 10 crore homes will be up for grabs by digital cable and DTH operators in the next four – five years. DTH should gain higher market share in Phase III and IV of the Government of India digitization plan in comparison to the prior phases. We are excited and prepared to take on the significant subscriber growth opportunity ahead of us, as we approach the Phase III digitization deadline. While actual implementation could take time, we continue to believe the government has a strong intent to switch off analogue cable as per the plan.”

  • Videocon d2h expands HD offering to 37 channels

    Videocon d2h expands HD offering to 37 channels

    MUMBAI: Videocon d2h has expanded its high-definition (HD) offering to 37 channels by adding Star Movies Select HD and Fox Life HD on channel number 258 and 468 respectively. 

     

    The new channel launches on its platform continue to validate Videocon d2h’s commitment to providing Indian audiences with high-quality content across an array of genres and formats.

     

    Star Movies Select HD will premiere two new films not previously released in India each month, in addition to airing a new movie everyday. Additionally, Fox Life HD features a slate of scripted and non-scripted content that is inspired by real life as well as appealing and appropriate for the entire family. Fox Life HD will be having multiple audio feeds in Hindi, Tamil and Bengali besides English. 

     

    Videocon d2h plans to continue to add more HD channels shortly, with an aim to have as many as 50 HD channels. 

     

    “We have been relentless in our pursuit to gratify our customers’ with an exceptional viewing experience. Videocon d2h’s substantial offer of wide range of HD channels is a testimony to that endeavour.  We remain committed to expanding Videocon d2h’s channel offerings and content as a means to providing a superior viewing experience to our customers, augmented by innovative technology and the best customer service. It’s a simple plan that we believe will result in a major upgrade for India’s TV viewing public,” said Videocon d2h executive chairman Saurabh Dhoot. 

     

    Videocon d2h CEO Anil Khera added, “Videocon d2h has been extremely aggressive and innovative when it comes to technology upgrades, new content offerings and launching new services all in an effort to keep ahead of current industry trends. Fox Life HD with multiple audio feeds and Star Movies Select HD are two premium HD channels that bring even more quality content to our subscribers resulting in a superior viewing experience. Keeping both our promise to provide the best channels and content across all genres and our commitment to customer satisfaction has built a strong level of trust between our customers and Videocon d2h, and we value that relationship.”

  • Al Jazeera English hops on to Videocon d2h

    Al Jazeera English hops on to Videocon d2h

    MUMBAI: News channel Al Jazeera English in order to expand its reach in the country has hopped on to direct to home (DTH) platform Videocon d2h.

     

    The channel will be placed on channel number 365. Al Jazeera English’s association with Videocon d2h will allow it to cater to its users on the network. Globally, Al Jazeera English is available in nearly 300 million households across 130 countries.

     

    Videocon d2h CEO Anil Khera said, “We are delighted to have Al Jazeera channel on our platform. We believe in providing value proposition to our subscribers and addition of new channels is a resultant of this unique thought. Addition of this channel brings diverse assortment of quality channels for our subscribers.”

     

    Al Jazeera Media Network Global Brand and Communications executive director Abdulla Al Najjar asserted, “We are very pleased with this agreement with Videocon d2h. We have a strategic commitment to employ new avenues and platforms for audiences across the world to access our content and this agreement with Videocond2h expands on that commitment.  We look forward to delivering Al Jazeera English’s ground-breaking content for audiences across India on Videocon d2h.” 

     

    Videocon d2h executive chairman Saurabh Dhoot added, “We look forward to continue providing unique, comprehensive and compelling content to all of our viewers across the country.  The addition of Al Jazeera is in line with this mission of providing quality channels to our mix of diversified subscribers.”

     

    Al Jazeera English was launched in November 2011 in India and is also accessible on other major platforms such as Dish TV, Tata Sky, Reliance and Airtel Digital TV.

  • Videocon d2h adds two new Kannada channels

    Videocon d2h adds two new Kannada channels

    MUMBAI: Direct to home (DTH) operator Videocon d2h has added two new Kannada channels: Raj News Kannada and Raj Musix Kannada.

     

    While Raj News aims to provide local news more accurately by establishing bureaus in every district of Karnataka, Raj Musix is a Kannada speciality music television channel from the Raj Group airing multi lingual content.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We want to offer the whole gamut of channels and services empowering the consumer to opt for his preferred choice of language. We will continue to focus on strengthening our regional content offering, thus keeping us at the forefront.”

     

    Videocon d2h will offer Raj News Kannada and Raj Musix on LCN 691 and 673 respectively.

     

    Videocon d2h CEO Anil Khera said, “We believe in delivering the best to our customers and are hopeful of achieving better penetration, through the addition of these channels in the interior regions of Karnataka, where the appetite for regional content is much more. Redefining the entertainment quotient with an array of channels and services is our focus area and we will be adding many more channels soon.”

  • Videocon d2h unveils educational TV initiative for kids

    Videocon d2h unveils educational TV initiative for kids

    MUMBAI: Videocon d2h has unveiled a new initiative aimed at preschool and elementary school aged children. The company has launched Smart Services, a value-added bouquet of learning activities and games available exclusively to Videocon d2h subscribers. This banner includes Smart Learning, Smart Kids and Smart Games, all available on subscription basis.

     

    Smart Learning, targeting school aged children under 14, will broadcast science videos and interactive ways to learn English. Smart Kids will cater to toddlers and kindergarten kids with nursery rhymes and stories. Each of Videocon d2h’s Smart Services will be offered at a subscription rate of Rs 45 per month.

     

    In addition, one more value-added service is expected to launch soon for school going children. Called Smart Education, it will also feature the educational curriculum of various boards.

     

    “We strive to provide the best of education based entertainment to our subscribers, especially our young audience,” said Videocon d2h executive chairman Saurabh Dhoot. “Keeping this in mind, we have launched the SMART Services bouquet, our learning based entertainment content.  The content is specially designed and handpicked to provide the best of learning to across all ages,” Dhoot added.

     

    Videocon d2h CEO Anil Khera asserted, “Videocon d2h is launching its Smart Services offering to capture the imaginations of kids while helping them learn. The rich content is designed to help change the TV viewing of children to a learning viewing that brings joy and fun to children through stories and easy-to-comprehend videos.”

  • Sandesh News hops on Videocon d2h

    Sandesh News hops on Videocon d2h

    MUMBAI: Direct to home (DTH) operator Videocon d2h, has added Gujarati regional news channel Sandesh News on its platform. Sandesh News is a 24/7 news and current affairs channel.  With this, Videocon d2h now has eight Gujarati channels and services.

     

    Videocon d2h offers 500 channels and services and host of regional channels. Sandesh News is available on the d2h platform on LCN 942.  

     

    Videocon d2h executive chairman Saurabh Dhoot said, “Addition of this new channel Sandesh News reconfirms our endeavour to add the best of regional channels, catering to our ever growing subscriber base.  We look forward to provide every subscriber with a choice of selecting their favourite channels from our vast array of channels and services, thus keeping us at the forefront.”

     

    Videocon d2h CEO Anil Khera added, “Every new channel added on our platform is a valuable addition to our regional content.  This addition of Sandesh News will further encourage viewers to opt for a variety of content. Redefining the entertainment quotient with an array of channels and services is our focus area and we will be adding many more channels soon.”

  • Videocon d2h re-appoints Ernst & Young India as internal auditor

    Videocon d2h re-appoints Ernst & Young India as internal auditor

    MUMBAI: Indian direct to home (DTH) operator Videocon d2h has re-appointed Ernst & Young LLP, India for the fiscal year ending 31 March, 2016 to support it in performing internal audit and testing of internal controls over financial reporting for the company.

     
    Ernst & Young LLP, India has served as the internal auditor of the company since 16 February, 2015.
     

    Videocon d2h executive chairman Saurabh Dhoot said, “The re-appointment of Ernst & Young LLP, India will help ensure that the company continues to maintain rigorous internal financial and accounting controls and procedures, and produce accurate financial statements on a timely basis, in line with international best practices.”
     

    Videocon d2h proposed director Jeff Sagansky added, “Following the NASDAQ listing, the company has established international best practices for corporate governance and policies, including those pertaining to related party transactions and internal controls, and are pleased that Ernst & Young LLP, India will continue to help us in this area.”
     

    Ernst & Young LLP, India partner Ashish Pherwani said, “We are happy to partner with Videocon d2h in its journey towards improved practices and controls in an environment of competition and growth.”

  • Videocon d2h ups HD fare; looks to offer 50 channels

    Videocon d2h ups HD fare; looks to offer 50 channels

    MUMBAI: Direct to home (DTH) player Videocon d2h has strengthened its bouquet of HD channels and services. With the addition of TLC HD channel, the platform now offers 35 HD channels and services. Moreover, with strong demand for high definition content, Videocon d2h is looking at upping its HD offering to 50 channels and services soon.

     

    The 35 HD channels and services available on Videocon d2h include India’s first and only 4K Ultra HD DTH channel. With flat panel TVs being widely accepted and its consumption increasing, the time is ideal for increasing the number of HD channels.

     

    Videocon d2h executive director Saurabh Dhoot said, “We at Videocon d2h believe in giving our viewers the finest quality content to transform their television viewing experience. The rich quality video of HD channels makes viewing a delight and it is our honest endeavour to provide maximum content in HD. TV viewing experience in India is set for an upgrade and Videocon d2h is ready for the same with its innovative technology and quality services.”

     

    Videocon d2h CEO Anil Khera added, “Videocon d2h believes in offering its customers the most premium content. With 35 HD channels & services, we are working towards delivering more than expected. Our subscribers can enjoy a wide range of high-definition channels of various genres like sports, movies, entertainment, infotainment, and music. This promise of giving the best channels and services across genres has built trust for Videocon d2h.”

  • FY-2015: Subscriber growth, ARPU drives up Videocon d2H revenue by 32.5%

    FY-2015: Subscriber growth, ARPU drives up Videocon d2H revenue by 32.5%

    BENGALURU: Videocon d2h Limited reported 25.2 per cent growth in gross subscriber addition and 20.6 per cent growth in net subscriber addition in FY-2015 (year ended 31 March, 2015). Coupled with higher average revenue per user (ARPU) for FY-2015 at Rs 196, and Rs 202 in Q4-2015, the company reported 32.5 per cent growth in revenue from operations in FY-2015 at Rs 2337.7 crore as compared to the Rs 1764.4 crore in FY-2014. The company’s subscription revenue increased 38.3 per cent in the current year to Rs 2058.1 crore from Rs 1487.7 crore in the previous year.

     

    Videocon d2h says that it was able to push through an inflation linked ARPU increase in February 2015. As a result, Q4-2015 ARPU was Rs 202, a 11.7 per cent increase over FY-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    “We are pleased to announce that we successfully listed American Depositary Shares on NASDAQ in April, becoming the most valued Indian company to be listed on the NASDAQ. We are happy to share our results for fiscal 2015. We maintained our market leadership in subscriber growth and reported key financial metrics ahead of the guidance provided during the listing process. We believe, with our strong balance sheet and continued momentum, we are well-positioned for the future,” said Videocon d2h executive chairman Saurabh Dhoot.

     

    Videocon d2h CEO Anil Khera added, “The Pay TV segment in India is positioned for extraordinary growth over the next few years with millions of new TV homes being created on account of the strong economic outlook in India as well as the Government of India’s initiative to roll out its digitalization mandate across the country. We believe that 90-100 million homes will be making the switch to digital platforms, which will be available to the DTH and digital cable operators. We are well positioned to benefit from this and we believe we will take the largest share of this opportunity, as we have in the past. With strong economic growth outlook for India, overall media sector is expected to grow in the years to come. We believe this will help grow ARPU, TV penetration and increase HD uptake leading to stronger revenue growth for Pay TV in general and Videocon d2h in particular.”

     

    Loss down, EBIDTA up in FY-2015

     

    Videocon d2h reported lower net loss in FY-2015 at Rs 272.7 crore as compared to the Rs 319.5 crore in the previous year. Adjusted EBIDTA increased 55.3 per cent in the current year to Rs 609.1 crore (margin 26.1 per cent) from Rs 319.5 crore (margin 34.1 per cent), the company said in its earnings release on NASDAQ. 

     

    Subscriber numbers, content cost

     

    Gross subscribers increased 26.4 lakh in FY-2015 to 130.9 lakh from 104.5 lakh in FY-2014. Net subscribers increased by 17.4 lakh to 101.8 lakh in the current year as compared to 84.4 lakh in the previous year. Subscriber churn per month increased fractionally in FY-2015 to 0.8 per cent as compared to 0.76 percent in the previous year. The company says that almost 30 per cent of incremental net subscribers opted for the HD service. Videocon d2h says that its HD subscribers base now represents almost 10 per cent of the total net subscriber base, up from five per cent in FY-2014. The company expects HD penetration to increase in the coming fiscal year, with an attendant impact on ARPU. 

     

    Videocon d2h reported higher content cost at 36.2 per cent of revenue in FY-2015 as compared to the 34.1 per cent of revenue in the previous year.

     

    Videocon d2h has a market share of roughly 20 per cent of the DTH net subscriber as on March 2015, up from nine per cent four years ago.

  • Videocon d2h appoints Saurabh Dhoot as executive chairman

    Videocon d2h appoints Saurabh Dhoot as executive chairman

    MUMBAI: Direct to home (DTH) company Videocon d2h has named Saurabh Dhoot as executive chairman.

     

    In this newly created position as executive chairman, Dhoot will continue to build the Videocon d2h brand and business model, overseeing all operations and strategic direction for the satellite Pay-TV provider, which has amassed more than 13 million digital subscribers since it launched in 2009.

     

    Based in Mumbai, Dhoot joined Videocon d2h at its inception, serving as executive director.

     

    In this position, he was responsible for overseeing the launch of the Pay-TV service and the initial $650 million investment. Through Dhoot’s leadership, Videocon d2h has achieved many “firsts” in the Indian DTH industry like the launch of 4K Ultra HD channel, the 1000 GB High Definition Digital Video Recorder, Wireless DTH headphones and Radio Frequency DTH Remote amongst others.

     

    “I take great pride in all the success we’ve enjoyed at Videocon d2h, and I feel even more excited about what our terrific team and I will accomplish going forward. With 100 million homes expected to be digitalized in the next five years, Videocon d2h will play a leading role in the ‘Digital India’ campaign. We will continue to bring unique content, new mediums of delivery and innovative services to our consumers. With our new capital infusion from the US, it is time to begin the next wave of exciting growth and expansion,” said Dhoot

     

    In April 2015, Videocon d2h became the first Indian communications and media company to be listed on the NASDAQ stock market. With this IPO, Videocon d2h is now the most valued Indian company on NASDAQ at a market capitalization of $1.2 billion.

     

    Media investors Harry Sloan and Jeff Sagansky of Silver Eagle Acquisition Corp engineered the IPO. Silver Eagle contributed its $325 million cash, before payment for transaction expenses and warrant repurchases, and the Silver Eagle shareholders now own approximately 38 per cent of the equity in Videocon d2h.

     

    “We have been impressed with both Videocon d2h’s rise in India’s DTH market and Saurabh’s talent, energy and vision in leading that charge,” Sloan said.

     

    Sagansky added, “Videocon d2h is poised for growth, whether launching new dedicated channels and Services or increasing the level of advertising revenues. Under Saurabh’s guidance, the company is well positioned to maintain and expand its commanding market share.”