Dish TV posts Rs 1,361.3 cr loss in Q4FY19, subscription revenue drops 5%

Direct-to-home (DTH) service provider Dish TV India Limited reported consolidated subscription revenues of Rs 1308.3 crore and operating revenues of Rs 1398.7 crore for the fourth quarter of fiscal year 2018-2019 (Q4FY19). Subscription revenue dropped by 5 per cent year on year, while operating revenue fell 8.7 per cent year on year.

EBITDA for the quarter stood at Rs 415.0 crore, up 3.6 per cent from Rs 400.6 crore last fiscal. The company reported a loss of Rs 1,361.3 crore, as compared to a profit of Rs 118.2 crore in the same quarter last fiscal. The loss was a result of an expense of Rs 1,562.5 crore listed as exceptional items. The company clarified in its filing on the Bombay Stock Exchange that exceptional items included impairment of goodwill to the tune of Rs 1,543 crore, and impairment of loans/advances to Dish TV Lanka Private Limited (a subsidiary) amounting to Rs 141.99 crore in addition to impairment of certain recoverable amounts of Rs 19.55 crore.  

For the fiscal ended March 31,2019, Dish TV reported subscription revenues of Rs 6166.1 crore, up 33.1 per cent from FY18’s Rs 4634.2 crore. EBITDA for the fiscal was RS 2044.3 crore, up 55.3 per cent from FY18’s Rs 1316 crore. However, the company reported a loss of Rs 1163.4 crore, as compared to a loss of Rs 84.9 crore last year.

Dish TV reported a net subscriber base of 23.7 million users at the end of FY19, with the last quarter of the year involving the shift to the new tariff regime. In March, internal surveys conducted by the company showed that 93 per cent of the migrated subscribers were satisfied with the new channel combinations offered to them. Close to 60 per cent subscribers, on an average, were upgraded from their existing monthly packs with the average full month recharge being higher by Rs 8 and Rs 7.25 respectively for Dish TV and D2h platforms. “In fact, the last month of the quarter turned out to be a blockbuster with acquisitions being higher by 156 per cent, and revenues higher by 18 per cent over January and February average,” the company said.

“FY20 started on a strong note with the general elections keeping viewers hooked on to their television. The soon to start Cricket World Cup should further engage the television viewing masses bringing revenue growth to the business. The year is also going to be the first full year seeing the positive impact of the now well in place Tariff Order. We strongly believe that the New Regulatory Regime will bring the much needed transparency in the industry thus helping distribution platforms like Dish TV command a premium for its nationwide reach,” said Anil Dua, Group CEO, Dish TV India Limited.

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