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.
(Logo:
http://photos.prnewswire.com/prnh/20160519/806055 )
Key highlights:
- Revenue from operations came in at INR 8.35 billion;
- Subscription and activation revenue came in at INR 7.70
billion;
- Adjusted EBITDA grew 12.9% from last quarter to INR 2.81
billion and Adjusted EBITDA margin expanded 140 basis points from
last quarter to 33.6%;
- Profit after tax came in at INR 168 million;
- Free cash flows[3] came in at INR 428 million;
- ARPU came in at INR 212;
- Gross subscribers[4] and net subscribers increased
by 0.45 million and 0.21 million, respectively, during the
quarter;
- Net subscribers base stood at 13.25 million as of September 30, 2017; and
- Churn[5] came in at 0.62% per month in Q2 FY18.
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."
Financial Summary
(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[6] (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
References
- The Company calculates EBITDA by calculating profit or loss
after tax as increased by income tax expense, net finance costs,
depreciation, amortization and impairment and reduced by other
income. Adjusted EBITDA is EBITDA adjusted for share-based payments
(which comprise the recognition of fair value of the Employee Stock
Option Plan 2014 recognized as an expense over the vesting period
and equity-based compensation paid to our Executive Chairman) which
amounted to INR 21.01 million for the quarter ended September 30, 2017, and nil for the quarters
ended June 30 and September 30, 2017, respectively. Adjusted EBITDA
presented in this earnings release is a supplemental measure of
performance and liquidity that is not required by or represented in
accordance with IFRS. Furthermore, Adjusted EBITDA is not a measure
of financial performance or liquidity under IFRS and should not be
considered as an alternative to profit after tax, operating income
or other income or any other performance measures derived in
accordance with IFRS or as an alternative to cash flow from
operating activities or as a measure of liquidity. In addition,
Adjusted EBITDA is not a standardized term, hence direct comparison
between companies using the same term may not be possible. Other
companies may calculate Adjusted EBITDA differently from the
Company, limiting their usefulness as comparative measures. The
Company believes that Adjusted EBITDA helps identify underlying
trends in the Company's business that could otherwise be distorted
by the effect of the expenses that are excluded when calculating
Adjusted EBITDA. The Company believes that Adjusted EBITDA enhances
the overall understanding of its past performance and future
prospects and allows for greater visibility with respect to key
metrics used by its management in its financial and operational
decision-making.
- Net subscriber means subscribers authorized to receive DTH
broadcasting services on account of payment of subscription charges
or any entry offer at the time of initial connection, as well as
subscribers who are temporarily disconnected due to non-payment of
subscription charges for a period not exceeding 120 days.
- The Company calculates free cash flow as Adjusted EBITDA less
capital expenditure and net interest expense, as increased by other
income. Free cash flow is not an IFRS measure and should not be
construed as an alternative to any IFRS measure such as cash flow
from operating activities. Free cash flow should not be considered
in isolation and is not a measure of the Company's financial
performance or liquidity under IFRS and should not be considered as
an alternative to cash flow from operating, investing or financing
activities or any other measure of its liquidity derived in
accordance with IFRS. Free cash flow does not necessarily indicate
whether cash flow will be sufficient or available for cash
requirements and may not be indicative of the Company's results of
operations. Free cash flow as defined herein may not be comparable
to other similarly titled measures used by other companies.
- Gross subscribers mean total registered subscribers.
- Churn has been calculated as the number of subscribers who have
not made payment for at least 120 days and is the difference
between the number of gross subscribers and the number of net
subscribers.
- Average Revenue Per User ("ARPU") is calculated by dividing
revenue from operations by the average of the Company's net
subscribers for the period.
SOURCE Videocon d2h