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HomeNewsDTH NewsDish TV see a downturn in subscriber additions
Wednesday, 12 February 2020 05:37

Dish TV see a downturn in subscriber additions

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The leading DTH operator Dish TV has seen poor growth in subscriber acquisition during the October-December quarter despite the presence of festive season. 

The DTH operator narrowed its net loss to Rs 66.8 crore for the quarter ended 31st December as against Rs 96.4 crore in the trailing quarter. The company’s EBITDA for the quarter declined to Rs 505.6 crore compared to Rs 520.5 crore a quarter ago.

It posted operating revenue of Rs 867.8 crore as against Rs 893.2 crore in the previous quarter. Subscription revenue stood at Rs 798.2 crore compared to Rs 792 crore. Additional marketing, promotional and bandwidth fee revenue increased to Rs. 34.9 crore from Rs 33.9 crore. Other operating income jumped to Rs. 46.7 crore from Rs 31.9 crore.

The DTH platform’s expenditure declined to Rs 362.2 crore compared to Rs 372.7 crore. The cost of goods and services fell to Rs 191 crore from Rs 194 crore. Personnel cost increased to Rs 46.1 crore from Rs 44 crore. Other expenses stood at Rs 125.1 crore compared to Rs 134.6 crore.

Dish TV said that the DTH industry saw a downturn in subscriber additions this quarter as compared to the previous quarter despite the festive season. The third quarter is generally the strongest quarter for DTH companies due to the festive season. However, the Q3 FY20 didn’t turn out the way it was anticipated. Despite a good start, the momentum got lost as the quarter progressed. The H2 of the fiscal was expected to be much stronger than the modest first half.

It added: “Television, one could argue, should not really take the brunt of weak economic indicators. True, but with subscription growth linked to higher demand for pay channels, growth in households opting for pay-tv, wider adoption of high-definition offerings and proliferation of multi-tv households, the propensity to spend on entertainment consumption does come into play.”

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