Dish TV E-Tax burden to increase, but marginally for Dish TV ::Emkay

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Dish TV

E-Tax burden to increase, but marginally for Dish TV

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CMP: Rs76                                        Target Price: Rs96

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n     T.N. government has imposed 30% E-Tax on the DTH operators, 25% on IPL and increased on cinema tickets from15% to 30% with immediate effect 

n     The move has come after T.N. govt. launched its MSO Arasu to take on the Sun TV’s promoter unlisted MSO Sumagali TV and Sun Direct (DTH arm) who enjoy monopoly in the state

n     Maximum impact would be on Sun Direct as it has ~80-85% subscriber market share in the state. While other operators have who have remaining share would also get impacted  

n     Raise our E-tax assumption for Dish TV by 80bps-130bps for FY12E/FY13E. Management indicated E-Tax would be ~5% going forward