Dish TV to report healthy performance in quarters to come
The increase in average revenue per user (ARPU) of Dish TV India in the June 2012 quarter signal to increasing revenues in the coming quarters.
By Rajesh Naidu, ET Bureau | Updated:
MUMBAI: After five consecutive quarters, Direct-to-home (DTH) company Dish TV India has been able to increase its average revenue per user in the June 2012 quarter. The company's average revenue per user in the last five quarters has been in the range of Rs150-152, which it increased to Rs156 in the June 2012 quarter.
As the massive mandate of Telecom Regulatory Authority of India (TRAI) to digitalise the entire industry gains pace, Dish TV India with its market share of over 30% stands to benefit amply.
Being the market leader, the company will be in a better position to increase its average revenue per user in the second half of the present fiscal even as most DTH players are expected to rise their average revenue per user.
In the June 2012 quarter, the company reported net sales of Rs519 crore, growth of 12.3% against net sales of Rs462 crore in the last year's June quarter. Also the company's operating profit margin showed growth close to 4% to 29% on a year on year basis in the June 2012 quarter.
Low programming costs and selling and distribution expenses triggered this growth in the company's operating profit margin. The company's programming and content costs grew by a meagre of 2.9% to Rs151 crore on a year on year basis in the June 2012 quarter.
In the June 2012 quarter, the company added two lakh subscribers. The company had subscribers base of 13.4 million at the end of the June 2012 quarter.
The company's content cost is expected to increase by 12-15% as it negotiates deal with Media Pro-a 50:50 joint venture between STAR DEN Media Services (STAR DEN) and Zee Turner to jointly distribute channels from STAR and Zee's stable.
Going ahead, an increasing preference for High-Definition (HD) among subscribers would be crucial for enhancing the company's significantly. At present, the company's average revenue per user for HD services stands at Rs414 per month.
As the massive mandate of Telecom Regulatory Authority of India (TRAI) to digitalise the entire industry gains pace, Dish TV India with its market share of over 30% stands to benefit amply.
Being the market leader, the company will be in a better position to increase its average revenue per user in the second half of the present fiscal even as most DTH players are expected to rise their average revenue per user.
In the June 2012 quarter, the company reported net sales of Rs519 crore, growth of 12.3% against net sales of Rs462 crore in the last year's June quarter. Also the company's operating profit margin showed growth close to 4% to 29% on a year on year basis in the June 2012 quarter.
Low programming costs and selling and distribution expenses triggered this growth in the company's operating profit margin. The company's programming and content costs grew by a meagre of 2.9% to Rs151 crore on a year on year basis in the June 2012 quarter.
In the June 2012 quarter, the company added two lakh subscribers. The company had subscribers base of 13.4 million at the end of the June 2012 quarter.
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The company's content cost is expected to increase by 12-15% as it negotiates deal with Media Pro-a 50:50 joint venture between STAR DEN Media Services (STAR DEN) and Zee Turner to jointly distribute channels from STAR and Zee's stable.
Going ahead, an increasing preference for High-Definition (HD) among subscribers would be crucial for enhancing the company's significantly. At present, the company's average revenue per user for HD services stands at Rs414 per month.
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