DTH
Videocon d2h continues top and bottom line increase in Q3-17
BENGALURU: Continuing the trend is has set in the previous two quarters, Videocon d2h reported a profit after tax (PAT) for the quarter ended 31 December 2016 (Q3-17, current quarter). The DTH major reported PAT of Rs 21.77 crore (2.8 percent margin) for the current quarter. It had reported PAT of Rs 6.32 crore (0.8 percent margin) for Q2-17, and Rs 2.66 crore (0.3 percent margin) for Q1-16. For the corresponding year ago quarter (Q3-17), the company had reported a loss of Rs 22.05 crore.
Since the beginning of the current fiscal (1 April 2016 to 31 March 2017), Videocon d2h has started reporting numbers net of entertainment tax, hence like-to-like comparisons for Q3-17 and Q3-16 are not comparable. However, the company has mentioned a few adjusted matrices for ease of comparison in its investor presentation and release.
Videocon d2h reported revenue from operations came in at Rs 777 crore in Q3-17. It says that on a like to like basis, revenue from operations would have been up 14.2 percent year-on-year (y-o-y) at Rs 835 crore if the company was to compute its revenue from operations for Q3-17 under its former accounting treatment
The DTH major also reported 13.3 percent y-o-y growth in net subscriber numbers at 127.7 lakh for Q3-17 as compared to 112.70 lakh and a 2 percent quarter-over-quarter (q-o-q) growth from125.2 lakh. Monthly Average revenue per user (ARPU) in the current quarter came in lower at Rs 205 as compared to Rs 209 in the immediate trailing quarter.
Subscriber matrices
Subscriber acquisition cost (SAC) in Q2-17 was higher at Rs 1,924 as compared to Rs 1,869 in the immediate trailing quarter.
Subscriber monthly churn in the current quarter was lower at 0.87 percent as compared to 0.95 percent in Q2-17. In Q3-16, it was slightly lower at 0.73 percent.
DAS III and IV are sunshine periods for the television carriage industry. Activation revenues have been adding to the top lines and bottom lines of most of the players. Videocon d2h computed subscription and activation revenue in the current quarter was Rs 711.2 crore as compared to Rs 710.7 crore in the immediate trailing quarter.
Let us look at some of the other metrics reported by Videocon d2h
Adjusted EBIDTA grew 33.2 percent y-o-y to Rs 267 crore (35.4 percent margin) in Q3-17.
Content cost margin came in at 39.6 percent of revenue in Q3-17 s compared to content costs margin in Q2-17 of 38.7 percent.
Employee benefit expense in Q3-17 was 0.6 percent lower at Rs 30.21 crore as compared to Rs 30.41 crore in Q3-16 and 4.2 percent lower than Rs 31.5 crore in Q2-17.
Net finance cost in Q3-17 was lower at Rs 65.31 crore, in Q2-17 was Rs 71.7 crore; in Q3-16 net finance cost was Rs 71.74 crore.
Company speak
Commenting on the results and company outlook, Videocon d2h executive chairman Saurabh Dhoot, said, “I am delighted to report that we have delivered a strong quarter, despite the moderation due to currency demonetisation, which temporarily affected consumer sentiments and consumption. Our adjusted EBITDA grew over 33% year on year, which clearly demonstrates the strength of our distribution and customer service network and above all our team’s strong execution. We are entering 2017 in a whole new mode and are excited about the business fundamentals and growth opportunities supported by our healthy balance sheet and growing free cash flows.”
Speaking on the results, Videocon d2h CEO Anil Khera said, “I am happy to share that the digitization process has kick started once again as the Delhi High Court cleared all stay orders and ordered switch off of analogue signals in Phase III digitization areas by January 31, 2017. We remain excited about the significant Phase IV digitization opportunity, the new deadline for which is March 31, 2017.”
Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
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DTH
Dish TV moves court seeking level playing field with DD Free Dish
DTH player flags unfair edge as free platform reshapes pay-TV market
MUMBAI: Dish TV has approached the Kerala High Court, seeking a level playing field with DD Free Dish, the free-to-air satellite platform run by Prasar Bharati.
At the heart of the dispute is what Dish TV calls a regulatory imbalance. The company has urged the Ministry of Information and Broadcasting to bring DD Free Dish under the same rules as private direct-to-home operators, including mandatory encryption and compliance with the Digital Addressable System under existing laws such as the Indian Telegraph Act and the Cable Television Networks (Regulation) Act.
Private DTH platforms are required to encrypt their signals, meaning viewers need authorised set-top boxes and paid subscriptions. In contrast, DD Free Dish remains unencrypted, allowing access through basic equipment without monthly fees, a difference Dish TV argues creates a structural advantage.
In its petition, Dish TV has described the current framework as arbitrary and discriminatory, alleging it undermines constitutional guarantees of equality and the right to trade. The company pointed out that while private operators shoulder the cost of encryption infrastructure, licensing fees and regulatory levies, DD Free Dish operates without similar obligations despite scaling up significantly.
Originally launched to distribute Doordarshan channels, DD Free Dish has steadily morphed into a quasi-commercial platform. It now carries around 120 private channels and generates substantial revenue through slot auctions, with earnings rising sharply over the years, according to the petition.
The case also throws a spotlight on shifting dynamics within India’s television market. Pay DTH operators have been grappling with a shrinking subscriber base, which has fallen from nearly 70 million in 2021 to about 51 million in 2025. At the same time, DD Free Dish has expanded its reach to roughly 53 million households, buoyed by viewers in price-sensitive regions opting for free access over paid subscriptions.
The migration has been further fuelled by broadcasters placing popular channels on the free platform, making it an increasingly attractive alternative for households looking to cut costs.
The Kerala High Court has admitted the petition and scheduled the next hearing for June 2, 2026. It also noted that a recent notice by Prasar Bharati inviting regional channels to uplink on DD Free Dish without carriage fees until March 31, 2026 will remain subject to the final outcome of the case.
Regulators have already acknowledged the gap. The Telecom Regulatory Authority of India, in its July 2024 recommendations, proposed a shift towards an addressable system for DD Free Dish, though these suggestions are not binding. The government is yet to take a final call, mindful of the platform’s reach among millions of households.
The petition follows repeated representations from private players and bodies such as the All India Digital Cable Federation, all flagging the same concern: a fast-growing free platform competing in a paid market without the same rulebook.
As the courtroom battle unfolds, the outcome could redraw the contours of India’s pay-TV ecosystem, deciding whether the free ride continues or the rules of the game finally converge.
