MUMBAI, India, November 28, 2017 /PRNewswire/ --
Videocon d2h Limited (NASDAQ:VDTH) ("Videocon d2h" or the "Company") announced its financial results for the quarter ended September 30, 2017.
Key metrics Q2 FY18 Gross subscriber additions (million) 0.45 Net subscriber additions (million) 0.21 Adjusted EBITDA (INR million) 2,805 Profit after tax (INR million) 168 Free cash flow (INR million) 428
Commenting on the Company's outlook, Executive Chairman of Videocon d2h, Mr. Saurabh Dhoot, said "I am delighted to report that we have delivered a strong quarter and have reported the highest ever quarterly Adjusted EBITDA in the history of Videocon d2h at INR 2.81 billion. More importantly, Adjusted EBITDA per subscriber grew double digits from last quarter and came in at INR 71 per subscriber per month, supported by better revenue realizations and higher operational efficiencies.
We remain optimistic on the future outlook of the Company as we merge with Dish TV India Limited in the coming weeks, subject to receipt of approval from the Ministry of Information and Broadcasting. The businesses of Videocon d2h and Dish TV India Limited will be amalgamated for financial reporting purposes from October 1, 2017, the date appointed by the Honorable National Company Law Tribunal. We believe that the merged entity would be one of the largest Pay TV platforms in the world in terms of the subscriber base, according to company estimates. We are excited about the growth prospects of the merged entity given its large scale, solid business fundamentals and a healthy balance sheet."
Speaking on the business outlook, Mr. Anil Khera, CEO of Videocon d2h, said "I am happy to share that the Pay TV industry is witnessing a strong recovery on the ground as demonetization impact is behind us and GST has been implemented."
(In INR million, unless otherwise indicated)
Q2 FY17 Q1 FY18 Q2 FY18 Key financial metrics Revenue from operations 7,762 7,726 8,346 Subscription and activation revenue 7,107 7,091 7,701 Adjusted EBITDA 2,625 2,485 2,805 Adjusted EBITDA margin (%) 33.8% 32.2% 33.6% Profit after tax (loss) 148 12 168 Content cost (% of revenue) 38.7% 42.0% 39.7% Adjusted EBITDA less capex 907 1,246 1,174 Free cash flows 199 572 428 Key operating metrics Net subscribers (million) 12.52 13.04 13.25 ARPU (INR) 209 198 212 Churn per month (%) 0.95% 1.27% 0.62%
During the quarter ended September 30, 2017, Videocon d2h reported revenue from operations of INR 8.35 billion. Subscription and activation revenue came in at INR 7.70 billion. Videocon d2h achieved Adjusted EBITDA of INR 2.81 billion in Q2 FY18. Adjusted EBITDA margin expanded 140 basis points from last quarter and came in at 33.6% during the quarter. The Company achieved a Net Profit after Tax of INR 168 million and generated free cash flows of INR 428 million in Q2 FY18.
The Company added 0.45 million gross subscribers and 0.21 million net subscribers during Q2 FY18. Net subscribers totaled 13.25 million as of September 30, 2017. Monthly churn came in at 0.62% for the quarter as compared to 0.95% in the same quarter previous year. ARPU came in at INR 212.
Subscriber acquisition costs in the form of hardware subsidies were INR 1,747 per subscriber during the quarter.
Videocon d2h had term loans of INR 19.35 billion and total cash and short term investments of INR 4.35 billion as of September 30, 2017.
Forward looking statements
This earnings release may contain forward-looking statements, as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. We caution you that reliance on any forward-looking statement involves risks and uncertainties that might cause actual results to differ materially from those expressed or implied by such statements. These and other factors are more fully discussed in the Videocon d2h's annual report on Form 20-F filed with the SEC and available at http://www.sec.gov. All information provided in this announcement is as of the date hereof, unless the context otherwise requires. Other than as required by law, Videocon d2h does not undertake to update any forward-looking statements or other information in this announcement.
Q2FY18 financial results are available on the company web site http://www.ir.videocond2h.com
SOURCE Videocon d2h