Dish TV India Limited - Weak on quality - Emkay

Reco: ACCUMULATE
CMP: Rs 51
Target Price: Rs 60

- Revenue at Rs5.9bn (+2.5% qoq) and EBITDA at Rs1.5bn (+21.5% qoq, on a low base). EBITDA was aided by a 63% qoq decline in ad expenses. Net loss stood at Rs160mn

- ARPU at Rs165 was flat qoq, despite higher HD contribution. Subscription revenue grew 1.7% qoq. Net subscriber addition was 0.16mn, flat qoq. The churn remained stable at 0.6%

- Risk to incremental subscriber addition continues due to high entry costs. ARPU assumption stands at Rs166/176 for FY14E/15E

- Lower-than-expected performance led to a cut in EBITDA by 2%/5.6% for FY14/15E. FCF generation and balance sheet de-leveraging are key catalysts. ACCUMULATE with a TP of Rs60.

Source : Equity Bulls

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