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Dish TV reports Rs13.9 crore loss in June quarter

LiveMint logoLiveMint 17-08-2017 Harveen Ahluwalia

New Delhi: Direct-to-home (DTH) television operator Dish TV India Ltd on Thursday reported a net loss of Rs13.9 crore for the June quarter, compared with a profit of Rs 36.1 crore in the year-ago period.

The company, owned by Zee Entertainment Enterprises Ltd, reported operating revenue of Rs738.9 crore, 5.1% down from the year-ago’s Rs778.6 crore. Subscription revenue declined 5% to Rs691.7 crore.

“The quarter was witness to Dish TV making a smart recovery from the lows of the demonetization-impacted previous quarters. Seasonality impacted the growth in advertisement and bandwidth revenues; however, the company remains highly optimistic about the future growth potential of these two revenue line items,” the company said in a statement.

During the quarter, the company added 186,000 new subscribers, taking the total subscriber base to 15.7 million.

In July, Dish TV received an approval from the National Company Law Tribunal (NCLT) for a proposed merger with Videocon d2h, the DTH television arm of Videocon Industries Ltd. The companies are now awaiting approval from the information and broadcasting (I&B) ministry.

Dish TV and Videocon had announced a merger in November 2016. The new company will be called Dish TV Videocon Ltd; Dish TV will own 55% and Videocon a 45% stake in the new company.

“The proposed amalgamation will further help create scale in the highly fragmented TV distribution landscape in India while creating significant synergies through the combination,” Jawahar Goel, chairman and managing director at Dish TV India Ltd, said in a statement.

“Drawing inference from our initial estimates and integration meetings held so far, we expect approximate net synergies from the amalgamation to the tune of Rs1,800 million (Rs180 crore) in FY18 and Rs5,100 million (Rs510 crore) in FY19. Significant amongst these would be synergies arising from unified content contracts as each major contract becomes due for re-setting,” Goel added.

Goel will lead the combined entity, to be called Dish TV Videocon Ltd, as chairman and managing director.

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