Dish TV jumps on "probable" FDI hike
Dish TV is amongst the top gainers on the BSE and the stock is up almost 4.5% at Rs.114.05, closer to its intra day high levels of Rs.114.90. Its 52-week high is at Rs.121.85.
This “TV” stock along with Den Network is up on confirmed media reports that the Govt is considering a proposal to hike FDI to 100% in broadcasting carriage and content services, including direct-to-home (DTH) and cable networks in order to attract overseas investment and improve infrastructure.
Dish TV’s consolidated financial performance for Q1FY16 was very good but the market chose to look at the standalone numbers and that alone pushed the stock price into the red. The company posted a 19% (YoY) rise in consolidated net sales at Rs.734 crore with EBITDA going up 52% at Rs.237 crore. Margins showed a very good improvement at 32.29% v/s 25.32%. It ended the quarter with a net profit at Rs.54 crore v/s net loss of Rs.15 crore in Q1Fy15 and up 54% sequentially.
The company added 390 thousand net subscribers during the quarter, taking its total subscriber base to 13.3 million as at 30th June 2015. With effect from April 1, ‘15, Dish TV has started netting-off certain collection fees paid to its trade partners from its topline. This has resulted in the company’s topline getting shrunk by around 4%, with a similar number being decreased from the middle line. Post consolidation, Average Revenue per User (ARPU) was at Rs. 173 vs. Rs. 172 (QoQ). ARPU however would have been Rs.180 v/s Rs.179 in Q4 without the effect of consolidation. The free cash flow during the quarter was at Rs.69 crore.