DTH
Videocon d2h reports maiden annual net profit
BENGALURU: Videocon d2h Limited (Videocon d2h) led by executive chairman Saurabh Dhoot reported its maiden annual net profit for the year ended 31 March 2017 (FY-17, current year or fiscal). Notwithstanding the effects of demonetization, overall, the company reported growth across important matrices including subscription and activation revenue, subscriber numbers and operating profits. Annual ARPU, despite declining within fiscal 2017 was flat as compared to the previous year.
The company’s revenue from operations increased 7.6 percent to Rs 30,717.34 million in FY-17 from Rs 28,558.62 million in FY-16. The company’s consolidated profit after tax for the current year was Rs 304.42 million as compared to a loss of Rs 902.05 million in the previous year. Operating profit (adjusted EBIDTA, including other income) in the current year increased 27.1 percent in FY-17 to Rs 10,181 million. Adjusted EBIDTA less capex in FY-17 was Rs 3,932 million as compared to Rs 744 million in fiscal 2016.
Net subscriber additions in the year were 1.05 million. The company closed fiscal 2017 with a net subscriber base of 12.91 million. The company reported 0.80 percent churn, slightly higher than the churn of 0.73 percent reported in the previous year. Average revenue per user (ARPU) for the current year came at Rs 207, same as the previous year. ARPU numbers for the four quarters of fiscal 2017 – Q1-17, Q2-17, Q3-17 and Q4-17 were Rs 211,Rs 209, Rs 205 and Rs 196 respectively. Average net EBIDTA per user increased to Rs 69 in FY-17 from Rs 61 in FY-16.
Company speak
Dhoot said, “I am excited to share that Fiscal 2017 has been a yet another landmark year for Videocon d2h, as the Company achieved net profit and free cash flow breakeven. The Company reported 27.1 percent year on year growth in EBITDA, despite moderation due to Government of India’s demonetization policy during the November 2016, which also coincided with the seasonally stronger second half. More importantly, our Adjusted EBITDA per subscriber per month grew a healthy 13.0 percent year on year to INR 69. This clearly demonstrates the strength of our business and our ability to monetize the subscribers we added in Phase III and Phase IV Digitization markets.
During Fiscal 2017, we announced the scheme of amalgamation with Dish TV to create the fastest growing and the second largest pay TV company in the world, according to company estimates. We have now received the necessary approvals from the equity shareholders of Videocon d2h and the Competition Commission of India. The company has started working on an integration plan and has appointed Price Waterhouse Coopers, Deloitte and Aon Hewitt to work on post-merger integration along with the management of Videocon d2h and Dish TV India.”
Speaking on the business outlook for the DTH sector, Videocon d2h CEO Anil Khera said: “There has been numerous industry developments during Fiscal 2017, which we believe will provide for growth opportunities in the DTH sector in India. Recently, the government shared information on the applicable Goods and Service Tax (GST) rate for DTH. The GST rate of 18 percent for DTH operators could reduce tax payments in Fiscal 2018 and beyond.”
Other matrices
The company’s content cost in fiscal 2017 increased in terms of percentage of revenue to 39.9 percent compared to 37.8 percent in FY-16. During the four quarters of the current year – Q1-17, Q2-17, Q3-17 and Q4-17, content costs as percentage of revenue were: 38.7 percent, 38.7 percent, 39.6 and 42.5 percent respectively.
The company has invested Rs 6,249 million towards capacity expansion (capex) in FY-17 as compared to Rs 7,269 million in FY-16 and Rs 7,649 million in FY-15.
DTH
TDSAT adjourns Tata Play–Culver Max dispute to 30 March
Row dates to May 2025 after Tata Play dropped 25 Culver Max channels
NEW DELHI: The long-running broadcast carriage dispute between Tata Play and Culver Max Entertainment was on Friday adjourned to 30 March after proceedings before the Telecom Disputes Settlement and Appellate Tribunal were disrupted by technical difficulties.
The bench, led by chairperson justice Dhirubhai Naranbhai Patel with member Sanjeev Banzal, briefly took up the matter before deferring it. The adjournment was also recorded at the petitioner’s request.
The commercial row dates back to May 2025, when Tata Play dropped 25 Culver Max channels from its direct-to-home packs, citing contractual disagreements. Culver Max alleged the move breached both the interconnection agreement and the regulatory framework laid down by the Telecom Regulatory Authority of India, prompting it to approach the tribunal.
On 21 May, 2025, Culver Max issued a disconnection notice claiming unpaid subscription dues of Rs 128.42 crore for services up to 31 March, 2025. Tata Play disputed the demand, arguing that the dues were contested and that disconnection would violate regulatory norms.
In an interim order on 27 May, 2025, the tribunal stayed the proposed disconnection, subject to Tata Play depositing Rs 40 crore. The amount was paid on 3 June, ensuring continued carriage of the channels. The tribunal later restrained the broadcaster from disrupting services, recording Tata Play’s submission that channels remained available on an a la carte basis and that only bouquet composition had changed.
Culver Max subsequently sought recall of the interim relief, alleging misstatements by the DTH operator. It placed a statement of accounts before the tribunal, pegging total dues at Rs 124.87 crore, including invoices raised up to October 2025, and claimed more than Rs 63 crore remained unpaid even after adjustments.
Tata Play countered that invoices from June to September 2025 had been settled and that October invoices were not yet due under contractual timelines, characterising remaining differences as routine reconciliation issues.
The tribunal has since allowed Culver Max, formerly known as Sony Pictures Networks India, to withdraw its audit petition after placing the subscriber audit report on record, and dismissed the recall plea.
With Friday’s hearing cut short, the dispute over carriage fees, dues and bouquet structuring will now return to the tribunal on 30 March, prolonging one of the sector’s most closely watched broadcaster–DTH stand-offs.
