Dish TV India slides after posting Q3 net loss

Dish TV India fell 0.58% to Rs 11.94 after consolidated net loss stood at Rs 64.54 crore in Q3 December 2019 (Q3 FY20) as against net profit of Rs 161.66 crore reported in Q3 December 2018 (Q3 FY19).

Net sales slumped 42.8% year-on-year (Y-o-Y) to Rs 867.80 crore in Q3 FY20. Profit before tax (PBT) lost 47.1% to Rs 24.55 crore Y-o-Y. The Q3 figures were announced after trading hours yesterday, 12 February 2020.

Dish TV India reported a 43.5% decline in subscription revenues to Rs 798.20 crore in Q3 FY20 as against Rs 1,412.60 crore in Q3 FY19. Operating revenue slumped 42.8% to Rs 867.80 crore in Q3 FY20 as compared to Rs 1,517.40 crore in Q3 FY19. With programming cost becoming a pass-through item in the new tariff regime, subscription and operating revenues for the quarter are not comparable with the corresponding period last year.

EBITDA dropped 5% for the quarter to stand at Rs 505.60 crore in Q3 FY20 over Rs 531.90 crore in Q3 FY19. The consolidated EBITDA margin was at 58.3% during Q3 FY20.

As consumer sentiments remained cautious amidst a not-so robust macro economy and all businesses including the television industry found the going to be tough, the company said.

Commenting on the Q3 outcome, Anil Dua, the group CEO of Dish TV India, has stated that, "We are cautious but optimistic about improvement in our liquidity situation. We are in regular touch with lenders and hope to get alternate credit facilities to finance regular capex so as to normalize the utilization of cash flows towards debt repayment going forward. I can see the silver lining clearly and that is the fact that we have an extremely strong subscriber base. Also, notwithstanding multiple video viewing platforms in the market today, television in its traditional form is not going anywhere. We continue to invest in the business with that belief. The result is that both Dish TV and d2h continue to be the preferred choice of pay -TV subscribers in their respective markets."

Dish TV India is engaged in the business of direct to home (DTH) and teleport services. The company's segments include dth and teleport service, and infra support services. It is also engaged in the business of broadcasting of other satellite telecommunications activities.

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