20 October 2012
Dish TV India Ltd :: Microsec Research
Dish TV India Ltd (Dish) announced its standalone Q2 FY2013 results today, 18 October 2012. Both the company’s top line and EBIDTA performance came in line with our as well as consensus estimates. On the net income front as well, barring exceptional gain of `76.4 Crores, Dish reported losses as expected. A glimpse of the company’s quarterly results is as follows:
While Dish’s top line inched up 2.6% sequentially to `533.6 Crores, its losses shrunk to `21.3 Crores in Q2 FY2013 compared with `32.3 Crores in Q1 FY2013. The growth in revenues was largely driven by addition of 0.48 Mn new subscribers, and Average Revenues Per User (ARPU) remaining stronger at `159 during the quarter. Although the company reported slight q-o-q increase in EBIDTA, the EBIDTA margins dipped 72 basis points (bps) sequentially to 29.2% due to higher subscriber acquisition costs. Despite slight reduction in EBIDTA margins and high depreciation, Dish was able to trim in losses. Decline in Finance Expenses remained the prime factor for the same.However, on a reported basis the company posted a profit of `55 Crores for Q2 FY2013 incorporating exceptional gains of `76.4 Crores. The company changed the treatment of foreign exchange fluctuations, which resulted in gains of the foresaid amount.
Driven by government’s push for digitization – deadline to digitize operation in four metros falls during the next quarter, healthy ARPU, continued extension of services – launch of first SD recorder in Q2 FY2013 and wide range of channel offerings, Dish is likely to report healthy performance in upcoming quarters as well. Furthermore, the company was free cash positive for the third consecutive quarter. With this, we continue to rate Dish a BUY with a target price of `96.80.
Regards,
Team Microsec Research
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