Dish TV India Limited (BSE: 532839, NSE: DISHTV, LSE: DTVL) today reported second quarter fiscal 2021 unaudited consolidated subscription revenues of Rs.7,657 million and operating revenues of Rs. 8,464 million. EBITDA for the quarter stood at Rs. 5,253 million, up 0.9% Y-o-Y. EBITDA margin was at 62.1%, up 380 bps Y-o-Y.
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, 2020.
2Q FY21 Highlights
- Operating revenues of Rs. 8,464 million
- Subscription revenues of Rs. 7,657 million
- EBITDA of Rs. 5,253 million
- EBITDA margin at 62.1%
- PAT of Rs. 645 million
Working on All Fronts
Dish TV reported strong 2Q numbers despite the challenges of the ongoing pandemic and a generally weak quarter. Working on all fronts, the Company continued to build on its strengths while exploring and developing new technologies and processes to strengthen areas requiring improvement.
As one of the steps towards retaining existing subscribers the Company, in a bid to enhance subscriber engagement with the platform, upgraded its home grown OTT platform 'Watcho.' The upgrade introduced a popular feature that allows subscribers to create and upload videos. 'Watcho,' hosts a variety of indigenous web series and is believed to be an important connect between the DTH platform and its subscribers. The newly introduced feature provides a stage for creators to produce content in multiple formats – short to very short videos and short films, thus giving them exposure while helping 'Watcho' gain momentum in the user-generated content ecosystem.
With social distancing norms keeping majority of the people indoors for most of the quarter, the Company considered it critical to continue to work on further streamlining the touchless and digital recharge and buying experience. While home delivery of set-top boxes picked up speed, the sales and service teams spent significant time upskilling themselves and the on-ground network to integrate the new normal into their regular business practices.
On the cost front, work on enhancing operational efficiencies and cost optimization carried on. In a significant departure from years of practice the Company decided to procure set-top-boxes and other key accessories from India, going forward. The first consignment of 'Made in India' set-top-boxes was deployed during the quarter and India made power adaptors and remote controls are next on the list. The Company initially plans to procure almost 50% of its requirement of STBs from India.
Elaborating Dish TV India's, 'Make in India' plan, Mr. Jawahar Goel, CMD, Dish TV India Limited, said, “We are excited to be a part of the Government of India's, 'Make in India' initiative and are geared up to localize the manufacturing of set-top-boxes and other key accessories. With the vision of 'Make in India,' we reiterate our commitment to quality products that would exceed the rapidly evolving needs of customers. We thank the Government for their support and favourable policies that would help grow the sector.”
Performance during the Quarter
In the absence of fresh television content from pay entertainment broadcasters, subscribers remained picky in channel selection.
Operating revenues for the quarter were Rs. 8,464 million, down 5.2% Y-o-Y as lack of new content on entertainment channels made consumers wary of spending. EBITDA at Rs. 5,253 million was up 0.9% Y-o-Y. EBITDA margin at 62.1%, was up 380 bps Y-o-Y. Profit after tax was Rs. 645 million as against a loss of Rs. 964 million last year.
Total expenses during the quarter were down 13.9% Y-o-Y despite the loss from discard of consumer premises equipment (CPE), with trade partners, due to regional floods. The loss on account of write-off of such CPE was to the tune of Rs. 99 million, as against Rs. 30 million in the previous year.
Mr. Anil Dua, Group CEO, Dish TV India Limited, said, “We continue to be cautious yet agile, listening to market and customer voices. As we tread through these never seen before times, we remain committed to leveraging our strengths and overcoming our shortcomings to keep Dish TV India strong, relevant and profitable. Our performance during the quarter was in line with our larger strategic decisions such as, disciplined acquisition and sensible capital investment. Lower overall revenues were more than offset by our expense management measures.”
Dish TV and d2h continued to strengthen their regional content portfolio during the quarter. Both platforms added 6 new HD channels for their respective subscribers down South, making them amongst the strongest content platforms in those markets.
Other regional markets like Bengal and Orissa too witnessed fresh content being added to their list of channels.
In Bengal, Dish TV India partnered with 'Hoichoi,' a leading Bengali on-demand platform. The 'Hoichoi' app was also added in the App Zone of the Companies Android based connected devices, Dish SMRT Hub and d2h Stream. The Company looks forward to enhance the content offering on its hybrid STB through more such partnerships aimed at catering to the entertainment appetite of its native language subscribers.
Dish TV India Limited, in an industry-first initiative, announced the launch of 'Korean Drama Active' service. Observing a surge in consumption of content of Korean origin online, the Company in its endeavour to meet subscriber viewing preferences launched the Korean Active service at a nominal subscription price of Rs. 47 plus taxes per month. The service enriches subscribers' DTH experience by giving them access to more than 300 hours of premium Korean content dubbed in Hindi language.
Report By: Hirdesh Agarwal