>DISH TV: Highlights of Q1FY11 results

■ Dish TV’s performance for the quarter is marginally below estimates with revenues of Rs3.04bn (flat QoQ), EBITDA of Rs322m (estimates of Rs370m) and net loss of Rs632m (estimates of Rs575m) in Q1FY11

■ During the quarter, Dish TV has added 0.6m gross subscribers (7.5m subscribers) and 0.4m net subscribers (6.2m subscribers). Churn has improved on QoQ basis at 0.7% per month

■ ARPU has improved from Rs137 in Q4FY10 to Rs139 in Q1FY11 with renewal ARPU at Rs172 (up from Rs163)

■ ARPU based revenues stood at Rs2.5bn, rental revenues stood at Rs450m and bandwidth revenues stood at Rs55m.

■ As WWIL has discontinued HITS, the revenue from the same has stopped (Rs210m of revenues from HITS in Q4FY10). However, as this business was EBITDA neutral, corresponding costs have also reduced (transponder cost in particular)

■ Content cost during the quarter has increased by 2.2% QoQ at Rs1bn inspite of strong addition of subscribers, as Dish TV has entered into fixed contracts with most broadcasters. However as some contracts come up for re-negotiation in Q2FY11, content costs would witness an increase in next quarter.

■ Advertising, selling and distribution expenses have increased QoQ on the back of strong subscriber addition during the quarter as also launch of HD services. Advertising spends have increased by 36.9% QoQ at Rs249m while S&D expenses have increased by 26% QoQ at Rs421m.

■ During the quarter, license fees, transponder costs and other goods and services costs have decreased by 15.7% at Rs574m. This is primarily attributable to exclusion of HITS related transponder costs.

■ Total operating expenses have increased by 1.4% QoQ at Rs2.72bn

■ Overall subscriber acquisition cost has dropped on quarterly basis from Rs2383 in Q4FY10 to Rs2147 in Q1FY11.

To read the full report: DISH TV