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Dish TV
R e s u l t s i n l i n e w i t h e x p e c t a t i o n s …
Dish TV reported its Q1FY12 results, which were more or less in line with
our expectations. The topline stood at | 459.8 crore against our
expectation of | 477.4 crore, growing 51.1% YoY on the back of a good
subscriber as well as ARPU growth. However, the subscriber addition has
been disappointingly lower-than-expected at 0.7 million subscribers this
quarter. The subscriber base and ARPU grew by 50.2% and 7.9%,
respectively. EBITDA for the quarter stood at | 112.1 crore against our
estimate of | 111.1 crore. EBITDA margin for the quarter was | 24.4 crore,
which is 1382 bps and 357 bps more than that of Q1FY11 and Q4FY11,
respectively, owing to a significant reduction in the input costs. The
company reported a loss of | 18.3 crore as compared to | 63.2 crore in
Q1FY11.
ƒ Highlights for the quarter
After adding more than a million subscribers in each of the last two
quarters characterised by the World Cup and IPL season 4, the
subscriber addition for this quarter slowed down partially owing to a
hike in the set top box prices of | 200. The company added 0.7
million subscribers in this quarter taking its overall tally to 11.2
million. ARPU remained flat when compared to last quarter at | 150.
DTH subscription revenues grew 7.5% QoQ and 59.0% YoY to |
392.2 crore. The subscriber acquisition cost decreased to an all-time
low of | 2058 from | 2224 in Q4FY11 on account of lower ad
promotion expenses.
V a l u a t i o n
Dish TV’s subscriber addition has slowed down this quarter but we
expect it to pick up in the coming quarters led by the festive season. We
expect the addition of 3.2 and 3.1 million subscribers for Dish TV in FY12E
and FY13E, respectively. Assuming revenue CAGR of 20.7% over FY11E–
FY20E and terminal growth of 4.5%, thereon, we have arrived at a target
price of | 86/share. The stock is currently trading at | 86. We maintain our
HOLD rating on the stock
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dish TV
R e s u l t s i n l i n e w i t h e x p e c t a t i o n s …
Dish TV reported its Q1FY12 results, which were more or less in line with
our expectations. The topline stood at | 459.8 crore against our
expectation of | 477.4 crore, growing 51.1% YoY on the back of a good
subscriber as well as ARPU growth. However, the subscriber addition has
been disappointingly lower-than-expected at 0.7 million subscribers this
quarter. The subscriber base and ARPU grew by 50.2% and 7.9%,
respectively. EBITDA for the quarter stood at | 112.1 crore against our
estimate of | 111.1 crore. EBITDA margin for the quarter was | 24.4 crore,
which is 1382 bps and 357 bps more than that of Q1FY11 and Q4FY11,
respectively, owing to a significant reduction in the input costs. The
company reported a loss of | 18.3 crore as compared to | 63.2 crore in
Q1FY11.
ƒ Highlights for the quarter
After adding more than a million subscribers in each of the last two
quarters characterised by the World Cup and IPL season 4, the
subscriber addition for this quarter slowed down partially owing to a
hike in the set top box prices of | 200. The company added 0.7
million subscribers in this quarter taking its overall tally to 11.2
million. ARPU remained flat when compared to last quarter at | 150.
DTH subscription revenues grew 7.5% QoQ and 59.0% YoY to |
392.2 crore. The subscriber acquisition cost decreased to an all-time
low of | 2058 from | 2224 in Q4FY11 on account of lower ad
promotion expenses.
V a l u a t i o n
Dish TV’s subscriber addition has slowed down this quarter but we
expect it to pick up in the coming quarters led by the festive season. We
expect the addition of 3.2 and 3.1 million subscribers for Dish TV in FY12E
and FY13E, respectively. Assuming revenue CAGR of 20.7% over FY11E–
FY20E and terminal growth of 4.5%, thereon, we have arrived at a target
price of | 86/share. The stock is currently trading at | 86. We maintain our
HOLD rating on the stock
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