Dish TV Q3 net loss widens to Rs 44.88 cr

Jan 22 2013, 21:13 IST
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SummaryDirect to home company Dish TV today posted a higher loss of Rs 44.88 crore for the third quarter.

Direct to home company Dish TV today posted a higher loss of Rs 44.88 crore for the third quarter ended December 31, 2012. The company's net loss stood at Rs 42.96 crore in the October-December 2011 quarter, Dish TV said in a statement. Dish TV's total income from operations, however, increased by 13.12 per cent to Rs 557.82 crore in the reported quarter from Rs 493.08 crore in the year-ago period.

"In the third quarter, apart from the usual additional spends typically experienced due to the festive season, additionally this year, the company's investments to capitalise on the digitisation opportunity are also reflected in higher costs during the quarter," Dish TV Managing Director Jawahar Goel said.

Dish TV added 8.29 lakh new subscribers, achieving a total of 1.47 crore (gross) and 1.05 crore (net) subscribers in the quarter ended December 31, 2012.

"In line with our expectation, we witnessed significant subscriber uptake around the sunset date of October 31, 2012. Dish TV achieved the largest share of 28 per cent amongst DTH platforms in the digitisation territories," he said. Subscription revenues for the quarter stood at Rs 494.3 crore, a growth of 16.2 per cent compared to the same period last fiscal.

The per Subscriber Acquisition Cost (SAC) was recorded at Rs 2,201 compared to Rs 2,273 in the immediately preceding quarter, the statement said.

"A larger base did create pressure on the average revenue per user which, primarily supported by price hike in the second quarter, increased marginally to Rs 160," Goel said. The government had set October 31, 2012, as a deadline for digitisation of cable services in the country's four metros, as part of the first phase. Under the second phase, more than 35 cities across Maharashtra, Uttar Pradesh and Gujarat are to go digital.

"Although lack of execution in Chennai and Kolkata is a dampener, festival demand coupled with mandatory conversion in Delhi and Mumbai brought the DTH (Direct to Home) industry back to the 1-million plus monthly run-rate. DTH garnered around 35 per cent share of incremental additions post the sunset date," Goel said. Shares of Dish TV closed 4.96 per cent down at Rs 73.70 apiece on the BSE.

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