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Dish TV declares Q2FY22 results: Focused Notwithstanding Distractions

Nov 16, 2021
2Q FY22 Highlights
  • Operating revenues of Rs. 7,181 million
  • Subscription revenues of Rs. 6,445 million
  • EBITDA of Rs. 4,270 million
  • EBITDA margin at 59.4%
  • PAT of Rs. 354 million
Dish TV India Limited (BSE: 532839, NSE: DISHTV, LSE: DTVL) today reported second quarter fiscal 2022 unaudited consolidated subscription revenues of Rs. 6,445 million and operating revenues of Rs. 7,181 million. EBITDA for the quarter was Rs. 4,270 million. Profit after tax was Rs. 354 million.
The Board of Directors in its meeting held today, has approved and taken on record the unaudited consolidated financial results of Dish TV India Limited and its subsidiaries for the quarter ended September 30, 2021.

Focused Notwithstanding Distractions
It was business as usual at India's leading DTH Company despite some chaotic developments on the corporate front towards the end of the quarter.
Staying focused despite distractions, Dish TV India Limited tapered down its debt to Rs. 5,566 million while adding more than 0.6 million subscribers at the gross level. At a net level though, the Company recorded negative additions prioritizing repayment of debt over adding fresh subscribers.
The Company repaid debt of Rs. 697 million during the quarter to arrive at a closing debt of Rs. 5,566 million.
Retention and upgradation focused campaigns continued in line with the objective of increasing the lifetime value of subscribers. Further, to increase stickiness, 'Watcho'- the in house OTT app of the Company was loaded with fresh curated content. The platform debuted several new web series to further enhance the complimentary bouquet of offerings for Dish TV India subscribers. 'Watcho' continued to gain strength as an OTT platform with a strong semi urban presence in addition to a significant tier-1 visibility. The app has recorded total cumulative downloads of 36 million so far.
Mr. Anil Dua, Group CEO, Dish TV India Limited, said, “ We continue to remain focused in our efforts to drive business performance using tools that enhance the viewing experience of subscribers on both, the traditional as well as the OTT offering. We remain sensitive to changing consumer needs and look forward to new launches and a wider audience base.”
During the quarter, Dish TV India Limited announced the launch of its 'QR Scan Feature.' The scan to pay feature aims at giving customers a hassle-free single click payment experience when it comes to recharging their Dish TV account or paying utility bills. Dish TV and d2h subscribers will now be able to pay their bills in a few simple steps by scanning the QR code on the Company's websites, www.dishtv.in and www.d2h.com using any UPI app or wallet. UPI is currently the easiest and the most secure way of digital payments owing to its multifactor authentication which requires the users to verify themselves via multiple sources.
The onset of the festival period towards the end of the second quarter along with some normalization in consumer spending post the second wave of the pandemic encouraged the launch of customized  new offerings for existing as well as new subscribers. Dish TV India launched a special 'Get 1 for 5 Recharge Offer' as per which a complimentary month of subscription was provided for every five months of recharge. In addition, a 'Lucky Recharge Offer' wherein customers could avail up to 100% cashback on recharge of Rs. 501 was also launched.
Household spending however did not fully recover during the quarter and despite a fairly extensive sports calendar, recharges were not in line with earlier years. Both, streaming platforms as well as Free Dish, continued to give competition to conventional distributors with some of the DTH subscribers at the upper end exploring OTT services while those at the lower end sampling Free Dish services.
Operating revenues for the quarter were Rs. 7,181 million. EBITDA was Rs. 4,270 million. EBITDA margin was at 59.4%. Profit before tax for the quarter was Rs. 553 million. Net profit for the quarter was Rs.354 million. 
Consumers typically tend to step up spending during festivals and the festive season traditionally accounts for majority of the annual revenues of the Company. Upbeat consumer spending is expected during the festival quarter this year compared to the same quarter last year.
NTO 2.0
The Telecom Regulatory Authority of India (TRAI) recently extended the deadline for enforcing the New Tariff Order (NTO) 2.0 by announcing an execution plan for migrating subscribers to the new regime. TRAI directed distribution platforms to ensure that subscribers avail pay-tv services as per NTO 2.0 norms with effect from April 1, 2022, moving the earlier December 1, 2021 deadline. While distribution platforms like DTH and cable will have to seek subscriber choice till March 31, 2022, broadcasters will have to submit the required information to TRAI by December 31, 2021.
Several broadcasters had earlier challenged the NTO 2.0 in various High Courts. However, in an order passed on June 30, 2021, the Bombay High Court had upheld the validity of NTO 2.0, except the second proviso to the twin conditions which stated that the a-la-carte rates of each pay channel (MRP) forming part of a bouquet shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.
Broadcasters had then approached the Supreme Court challenging the Bombay High Court order. The Supreme Court is yet to announce its decision.
Mr. Jawahar Goel, CMD, Dish TV India Limited, said, “We would be watching the developments on the litigation front for now while simultaneously acting towards implementation of the order.” 
Report By: Hirdesh Agarwal 
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