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Research
Dish TV - First Cut - Q1 FY2013 Results - Microsec Research
Posted On : 2012-07-21 21:10:51( TIMEZONE : IST )
Dish TV India Ltd (Dish) announced its standalone Q1 FY2013 results on 19 July 2012. While the company's top line came slightly below our expectations, its bottom line, excluding foreign exchange losses, remained in line with our estimates. A glimpse of the company's Q1 FY2013 results is as follows:
Dish reported a slight 0.9% sequential decline in top line to Rs.520.0 Crores in Q1 FY2013. This decline can be mainly attributed to normalization of lease rentals. However, the negative impact of lease rentals was limited by increased subscribers and firm Average Revenues per User levels. While Dish's subscriber base increased from 12.9 Mn in Q4 FY2012 to 13.4 Mn in Q1 FY2013, its ARPU strengthened to Rs.156 during the quarter compared with levels of Rs.153, a quarter earlier. Although the growth in subscribers remained slow vis-Ã -vis Q4 FY2012, the company expects the government's push for digitization to help it regain the pace of subscribers' addition. Furthermore, increased HD user base remained the key contributor in Dish's ARPU augmentation. The company bagged a healthy 25% share of new HD additions in the industry.
Driven by increased quality revenues and lower churn, Dish was able to report a notable improvement in EBIDTA Margins. The Margins expanded 244 basis points (bps) q-o-q, or 350 bps y-o-y, to 29.9% in Q1 FY2013. However, a foreign exchange loss of Rs.13.8 Crores aggravated the red tick in its bottom line. Dish reported loss of Rs.32.3 Crores in Q1 FY2013 compared with loss of Rs.49.0 Crores in Q4 FY2012 and Rs.18.3 Crores in Q1 FY2012.
We are encouraged by Dish's healthy performance at operating level. Furthermore, the government's push to digitization, the company's rising presence in HD space, and continued growth in subscribers are expected to keep driving its performance, going forward. Recent increase in tariffs, by Dish, is also expected to fully reflect in the company's upcoming quarters' numbers. With this, we expect Dish to continue reporting healthy performance in the quarters to come.
We continue to remain bullish on the stock with a target price of Rs.96.80 per share.
