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  • Dish TV reports higher op profit for FY 2020 and Q4 2020

    Dish TV reports higher op profit for FY 2020 and Q4 2020

    BENGALURU: Indian DTH major Dish TV India Ltd (Dish TV) reported 30.9 percent year-over-year (y-o-y) growth in consolidated operating profit (EBITDA) for the quarter ended 31 March 2020 (Q4-2020, quarter under review) as compared to the corresponding year ago quarter. Consolidated EBITDA for the year ended 31 March 2020 (FY 2020) was 3 percent higher than the previous year (FY 2019).

    Dish TV reported operating revenue of Rs 3,556.34 crore for the year under review. For FY 2019, Dish TV had reported operating revenue of Rs 6,166.13 crore and programming and other costs of Rs 2,278.83 crore. Hence Dish TV’s adjusted operating revenue (operating revenue minus programming costs) works out to Rs 3,887,30 crore. With programming cost becoming a pass-through item in the new tariff regime, subscription and operating revenues for the quarter and fiscal are not comparable with the corresponding period last year says the company in its FY 2020 and Q4 2020 earnings release. For FY 2020 and FY 2019, consolidated operating EBITDA numbers were Rs 2,105.97 crore (59.2 percent of operating revenue) and Rs 2,044.27 crore (33.2 percent of operating revenue and 52.6 percent of adjusted operating revenue) respectively.

    Dish TV reported operating revenue of Rs 869.06 crore for Q4 2020 and Rs 1,398.75 crore for Q4 2019.  Dish TV ‘s consolidated EBIDTA for Q4 2020 and Q4 2019 was Rs 543.22 crore (62.5 percent of operating revenue) and Rs 414.97 crore (29.7 percent of operating revenue) respectively.

    Profit before tax and exceptional items for FY 2020 was Rs 128.15 crore and for FY 2019 profit before tax and exceptional items was Rs 26.85 crore. For Q4 2020 PBT without exceptional items was Rs 55.53 crore, while Dish TV had reported a loss before tax and exceptional items of Rs 82.34 crore for Q4 2019.

    The company has reported exceptional items for FY 2020 in the standalone financial results which included (a). Impairment of goodwill: R. 1,91,5.50 crore (FY 2019 – Rs 1,543 crore) and (b). Impairment of loans/advances to Dish TV Lanka Pvt Ltd (a subsidiary Company): Rs 3.66 crore (net) (FY 2019 – Rs 141.99 crore). Dish TV says that the goodwill acquired pursuant to merger of the company with the erstwhile Videocon d2H Ltd is periodically tested for impairment to ensure that it is carried at no more than its recoverable amount.

    Due to these exceptional items, Dish TV reported a loss of Rs 1.654.84 crore for FY 2020 and a loss of Rs 1,163.41 crore for FY 2019. Losses due to exceptional items in Q4 2020 and Q4 2019 were Rs 1,456.25 crore and Rs 1,361.30 crore respectively.

    Let us look at the other numbers reported by Dish TV for FY 2020 and Q4 2020

    For FY 2020, total expenditure was Rs 3,441.80 crore. The major expenses in FY 2020 were operating expenses of Rs 787.30 crore; employee benefits expense of Rs 193.11 crore; finance costs of Rs 565.22 crore and other expenses of Rs 466.51 crore.

    For Q4 2020, total expenditure was Rs 816.49 crore. The major expenses in Q4 2020 were operating expenses of Rs 172.10 crore; employee benefits expense of Rs 58.13 crore; Finance costs of Rs 143.30 crore and other expenses of Rs 95.32 crore.

    Though y-o-y, finance costs in Q4 2020 were down 2.9 percent as compared to Rs 147.62 crore in Q4 2019, they were up 4.7 percent higher quarter-on-quarter (q-o-q) as compared to Rs 136.91 crore in the immediate trailing quarter Q3 2020. Dish TV said in its earnings release for FY 2020 and Q4 2020 that it has paid balance of the overdue loan amount of Rs. 250 crore during the quarter. The company paid Rs. 445.90 crore in total during the quarter thus reducing its overall debt to Rs. 1817.50 crore at the end of fiscal 2020 as compared to Rs. 2769.50 crore at the close of fiscal 2019.

    Company Speak

    Dish TV group CEO Anil Dua said, “Though our revenues were positively impacted

    by the higher number of win backs and recharges during the initial days of the lockdown, we could not be complacent during such trying times and went all out to scan every cost-centre for greater operational efficiencies. Our all-time high EBITDA and EBITDA margin recorded during the quarter was a result of operational resilience demonstrated by the business.”

  • Merged Dish TV reports maiden numbers for fiscal 2018

    Merged Dish TV reports maiden numbers for fiscal 2018

    BENGALURU: The merged entity comprising of two Indian DTH players – Dish TV India Ltd reported its maiden fourth quarter and fiscal numbers for the periods ending 31 March 2018 (Q4 2018, quarter under review, FY 2018 year or fiscal under review). The two entities of the new behemoth Dish TV India Ltd were – Dish TV India Ltd and Videocon d2h Ltd before the merger. Dish TV and Videocon d2h had reported profit after tax (PAT) of Rs 82.12 crore and Rs 30.44 crore respectively for fiscal 2017. Individual revenues in fiscal 2017 were Rs 3,014.38 crore and Rs 3,071.73 crore for Dish TV and Videocon dh2 respectively. On 22 March 2018, Videocon d2h had merged with and into Dish TV India Ltd with the appointed date of the merger being 1 October 2017, or for the latter half of financial year 2018. The post merger consolidated operating revenue of Dish TV post merger for FY 2018 was Rs 4.634.16 crore and consolidated net loss was Rs 84.50 crore. Subscription revenue was Rs 4,216.7 crore. Consolidated total comprehensive loss (TCL) for FY 2018 was Rs 81.33 crore.

    Dish TV’s fiscal 2018 numbers are not comparable with FY 2017 in the form presented by the company for FY 2018. Financials of Dish TV India Ltd for the quarter ended 31 March 2018 thus represent three months’ financial performance each of Dish TV India Ltd and Videocon d2h Ltd. Similarly, financials of Dish TV India Ltd for the year ended 31 March 2018 represent 12 months’ financial performance of Dish TV India Ltd and six months financial performance of Videocon d2h Ltd. Both companies had reported separate financials for the quarter ended 31 December 2018 (Q3-2018, immediate trailing quarter, previous quarter).

    Subscriber numbers

    The merged company – Dish TV India Ltd had a subscriber base of 2.3 crore with a market share of about 37 per cent at the end of Q4 2018. This makes it the largest private DTH player in the country. ARPU (average revenue per user) of the merged entity for Q4 2018 was Rs 201. For Q3 2018, individually Dish TV had reported ARPU of Rs 144, while Videocon d2h had individually reported ARPU of Rs 208.

    Let us look at the other numbers reported by the merged Dish TV

    Simple consolidated EBIDTA for fiscal 2018 was Rs 1316.02 crore (28.4 per cent of operating revenue). Total expenditure for FY 2018 was Rs 4,786.23 crore. Employee benefit expense during the year under review was Rs 209.61 crore. Operational cost in fiscal 2018 was Rs 2,476.60 crore. Finance costs were Rs 396.37 crore. Other expenses were Rs 620.82 crore.

    Dish TV’s numbers for the fourth quarter

    Since the Dish TV-Videocon d2h merger happened in the third quarter of fiscal 2018, a year on year (y-o-y) comparison would not be an apples-to-apples comparison. We have compared how it fared in the fourth and third quarters (quarter over quarter or q-o-q) of 2018.

    The merged Dish TV India Ltd consolidated revenue from operations reduced 5.1 q-o-q in the quarter under review to Rs 1,532.37 crore from Rs 1,614.33 crore in Q3-2018. Consolidated total revenue reduced 5.7 per cent q-o-q to Rs 1,545.11 crore from Rs 1,638.50 crore.

    The merged entity reported consolidated PAT of Rs 118.21 crore (7.7 per cent of operating revenue) as compared to a loss of Rs 118.21 crore in the immediate trailing quarter Q3 2018. Consolidated simple EBITDA in Q4 2018 was 19.5 per cent lower q-o-q at Rs 400.65 crore (26.2 per cent of operating revenue) as compared to Rs 497.84 crore (30.8 per cent of operating revenue). Adjusted consolidated EBITDA (Dish TV claims that a onetime merger expense of Rs 60 crore was accounted for in Q4 2018) was 7.5 per cent lower q-o-q in Q4 2018 at Rs 460.65 crore (30.1 per cent of operating revenue) as compared to Rs 497.84 crore). Consolidated TCI in Q4 2018 was Rs 119.86 crore as compared to a consolidated TCL (total comprehensive loss) of Rs 166.31 crore in the previous quarter.

    The merged Dish TV’s consolidated total expenditure was almost the same at Rs 1,611.80 crore in Q4 2018 as compared to Rs 1,612.36 crore in Q3 2018. Operational cost in Q4 2018 increased 2.2 per cent q-o-q to Rs 866.36 crore from Rs 847.74 crore. Employee benefit expense during the quarter under review reduced 0.7 per cent to Rs 66.856 crore from Rs 67.30 crore in Q3 2018. Finance cost in Q4 2018 reduced 7.3 per cent q-o-q to Rs 132.94 crore from Rs 143.38 crore. Other expenses in Q4 2018 reduced 1.5 per cent q-o-q to Rs 195.97 crore from Rs 198.92 crore.

    Company speak

    In Dish TV’s earnings release, the company’s CMD Jawahar Goel said, “There is significant growth potential both in the short and the long term when it comes to acquiring new subscribers. While in the short term, digitisation will continue to feed subscriber additions, government schemes focused on bridging the urban/rural divide, increasing farm incomes and electricity connection to rural households will create demand for new televisions and pay-tv connections in the years to come.”

    On the merged Dish TV, Goel said, “It’s time to now put all thoughts to action and deliver what is expected from two leading platforms when they come together. I am happy to share that merger integration across functions has been successfully completed and new roles, responsibilities and key deliverables have been well received by our team.”

    “I see a new sense of passion and urgency all around in the company and believe that we have everything we need to surge ahead,” added Goel.

    Three well recognised and powerful brands- Dish TV, d2h and Zing are now being marketed under the Dish TV India Ltd umbrella. Dish TV group CEO Anil Dua said, “Revenue would be further fortified through Value Added Services, some of which have already been cross rolled-out on all three brands. With demonetization, poor rural demand and merger related distractions behind us, we are confident of a sharp turnaround in our operating and financial performance in this fiscal.”

    Also Read :

    Videocon d2h, Dish TV merger comes to fruition

    Dish TV-Videocon d2h to bank on economies of scale

    Videocon d2h delists from NASDAQ, merger with Dish TV likely on 22 March

  • Sluggish rural consumption, distribution expenses pull down Dish TV’s Q3 numbers

    Sluggish rural consumption, distribution expenses pull down Dish TV’s Q3 numbers

    BENGALURU: A recovered but not fully-up-to-speed rural sector and higher selling and distribution expenses during festival time led to Indian direct-to-home (DTH) major Dish TV India Ltd (Dish TV) reporting lower numbers for the quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the corresponding year ago quarter (yoy). Though the company added net 250,000 subscribers during the quarter, lower ARPU brought down Dish TV’s operating revenue and EBITDA by 1 per cent and 15.5 per cent, respectively, yoy. The company reported a net subscriber base of 1.61 crore at the end of Q3 2018. ARPU of Rs 144 in Q3 2018 was the lowest in the current fiscal as against Rs 148 in Q2 2018 and Rs 149 in Q1 2018. Dish TV’s ARPU before demonetisation in November 2016 was Rs 162. The company has reported net loss after taxes of Rs 3.58 crore in Q3 2018 as against profit of Rs 8.39 crore in Q3 2017.

    Dish TV CMD Jawahar Goel said, “One year down the line from demonetisation, we have come a long way but somehow the sting in rural consumption is still missing. This was probably well recognised by the government and hence the impetus towards a stronger rural India. Television continues to remain the cheapest and most wholesome means of entertainment for the masses. DTH has presence in places where few other television service providers have reached. Dish TV, amongst such DTH players, has perhaps the deepest rural connect and hopes to benefit from rural India’s increasing propensity to consume everything including television content.”

    In its investor release for Q3 2018, Dish TV said that the pending Dish TV–Videocon d2h merger had hit a roadblock as the company was forced to evaluate the impact of certain proposed proceedings, against the Videocon group, on its rights and obligations under the definitive agreements, and consequential effects on the transactions contemplated thereunder.

    Dish TV, on 15 December, had secured the Ministry of Information and Broadcasting’s approval to the request made by the company for closing the merger of Videocon d2h with and into Dish TV.

    Talking about the merger, Goel said, “We acknowledge our shareholders growing impatience with respect to the merger. We would like to assure them that work around the completion of the deal is going ahead with full steam now and should be completed soon.”

    “We are excited about the future of the merged entity and are raring to put the business in overdrive as soon as the merger completes. Though we have lost some time in FY18, we would want to regain our leadership as well as extract the highest possible synergies in the year ahead,” he explained.

    A look at the numbers

    Dish TV reported a 1 per cent yoy decline in operating revenue for the quarter under review at Rs 740.77 crore as against Rs 747.98 crore. EBITDA for Q3 2018 was 15.5 per cent y-o-y at Rs 200.52 crore (27.1 percent margin) as compared with Rs 237.42 crore (31.7 percent margin).

    Total expenditure for Q3 2018 increased by 4.3 per cent y-o-y to Rs 775.12 crore. Employee benefits expense declined 1.5 per cent y-o-y to Rs 35.80 crore. Operating expenses in Q3 2018 increased by 6.2 per cent yoy to Rs 374.08 crore. Other expenses during the quarter under review increased by 8 per cent to Rs 127.84 crore yoy. Finance costs in Q3 2018 reduced by 18.4 per cent yoy to Rs 50.16 crore.

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    MIB clears path for Dish TV Videocon

    Dish TV reports improved operating profits for second quarter