Medium-term signals remain weak for Dish TV

Cost and reach benefits from merger with Videocon d2h only trigger

On a day when the broader markets remained weak, Dish TV, which has been hitting its 52-week low repeatedly, gained 1.3 per cent after brokerage firm CLSA recommended a 'buy' rating, on account of positives from a merger with Videocon d2h and expectations of a revival in average revenue per user (ARPU). According to CLSA, the merger will boost combined operating profit of the merged entity by six per cent. It estimates the new entity will account for 45 per cent of the direct-to-home (DTH) market and 15 per cent of television households.

However, investors need to take note of