Dish TV India Ltd Research ReportQ1

Strong performance, sustainability is the key  Dish TV reported strong performance on subscription revenue owing to (i) Price hikes across majority of the packages (ii) Lower discounts at package level (iii) Higher share of HD subscribers in net additions. The subscriber additions also picked up during the sports heavy quarter and also on festivities.  Subscription revenues stood at | 1489.3 crore, which was up by 8.1% QoQ attributable to strong performance at ARPU level i.e 6.5% QoQ growth to |214 (vs our expectation of 2% QoQ growth). Subscriber addition also remained strong at 0.3 mn additions (vs our exp of 0.25 mn). 44% of the total subscribers added for the quarter were HD; HD subscribers forms 17% of the net base. The total revenues grew by 5.2% QoQ to |1655.6 crore  EBITDA came in at | 556.8 crore, up 39% QoQ (vs. our expectations of 501.9 crore), while reported EBITDA margin was at 33.6%, compared to our expectations of 31.9%. Backend, IT and  The net profit was at | 27.9 crore vs our expectation of | |24 crore. The suppression at PAT level was on account of sharp 34% QoQ growth in interest cost to |177.5 crore. The interest cost for the quarter had one-off cost of |20 crore related to refinancing of loans.