Videocon d2h Limited: Subscription and activation revenue grew 26.4% to INR 26.07 billion

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Commenting on the fiscal 2016 results and company outlook, Executive Chairman of Videocon d2h, Mr. Saurabh Dhoot, said “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realization and operating leverage benefit resulted in 31.5% Adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

“During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products.”

Speaking on the business outlook for the DTH sector, Mr. Anil Khera, CEO of Videocon d2h, said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the Government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

“In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million television homes.”

Key highlights for the year ended March 31, 2016:

  • Revenue from operations grew 22.2% year on year to INR 28.56 billion;
  • Subscription and activation revenue  grew 26.4% to INR 26.07 billion;
  • Adjusted EBITDA grew 31.5% to INR 8.01 billion;
  • Adjusted EBITDA margin expanded by 200 basis points to 28.1%;
  • ARPU[5] grew from an average INR 196 in fiscal 2015 to an average INR 207 in fiscal 2016;
  • Gross and net subscribers increased by 2.65 million and 1.68 million subscribers, respectively, during the year;
  • Net subscribers base at 11.86 million; and
  • Churn came in at 0.73% per month in fiscal 2016 as compared to 0.80% in fiscal 2015

Key highlights for the quarter ended March 31, 2016:

  • Revenue from operations grew 23.4% year on year to INR 7.72 billion;
  • Subscription and activation revenue  grew 20.9% year on year to INR 7.06 billion;
  • Adjusted EBITDA grew 25.0% year on year to INR 2.19 billion;
  • Adjusted EBITDA margin expanded by 40 basis points year on year to 28.4%;
  • ARPU increased from INR 202 in Q4FY15 to INR 214;
  • Gross and net subscribers increased by 0.79 million and 0.59 million subscribers during the quarter, respectively; and
  • Churn came in at 0.58% per month

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