MUMBAI, India, February 12, 2018 /PRNewswire/ --
- Adjusted EBITDA[1] came in at
INR 2.91 billion
- Net Subscriber[2] Base stands
at 13.41 million
Videocon d2h Limited (NASDAQ: VDTH) ("Videocon d2h" or the
"Company") announced its financial results for the quarter ended
December 31, 2017.
(Logo:
http://photos.prnewswire.com/prnh/20160519/806055 )
Key highlights:
- Revenue from operations came in at INR 8.34 billion;
- Subscription and activation revenue came in at INR 7.63
billion;
- Adjusted EBITDA grew 9.0% over the quarter ended December 31, 2016 to INR 2.91 billion and
Adjusted EBITDA margin expanded 60 basis points compared to the
quarter ended December 31, 2016 to
35.0%;
- Profit after tax came in at INR 309 million;
- Free cash flows[3] came in at INR 1,269
million;
- ARPU came in at INR 208;
- Gross subscribers[4] and net subscribers increased
by 0.56 million and 0.16 million, respectively, during the
quarter;
- Net subscribers base stood at 13.41 million as of December 31, 2017; and
- Churn[5] came in at 1.0% per month in Q3 FY18.
Key metrics Q3 FY18
Gross subscriber additions (million) 0.56
Net subscriber additions (million) 0.16
Adjusted EBITDA (INR million) 2,914
Profit after tax (INR million) 309
Free cash flow (INR million) 1,269
Commenting on the results, Executive Chairman of Videocon d2h,
Mr. Saurabh Dhoot said, "I am
pleased to report that we continued to deliver a strong quarterly
result with our Adjusted EBITDA being our highest ever quarterly
Adjusted EBITDA at INR 2.91 billion. Our Adjusted EBITDA per
subscriber continued to improve further and came in at INR 73 per
subscriber per month."
"We continue to see a recovery on the ground and expect overall
business prospects to improve driven by several factors including
lower content availability on the Free Dish platform and the Indian
Government's focus on increasing affordable housing and improving
rural income levels in the recent budget."
"During the quarter, the Company received all the necessary
approvals relating to its amalgamation with and into Dish TV India
Limited. The two companies now intend to file the relevant
intimations / E-Forms with the Registrar of Companies, Ministry of
Corporate Affairs, Maharashtra, Mumbai in the last week of February 2018, which filing date will become the
effective date for the proposed merger. The Company will issue the
relevant timelines and other mandatory notices in relation to the
merger in due course," added Dhoot.
Dish TV India Limited has nominated Mr. Amitabh Kumar and
Mr. Raj Kumar Gupta on the Board of Videocon d2h Limited for
the purpose of seamless integration of the businesses of Videocon
d2h Limited into and with Dish TV India Limited and for
synchronizing the operations of two Companies to derive the
benefits and objectives of the Scheme of Amalgamation; and based on
the recommendation of Nomination, Remuneration and Compensation
Committee Meeting, the Board of Directors of Videocon d2h Limited
have on 12 February 2018:
1. Appointed Mr. Amitabh Kumar
(DIN: 00222260), as an Additional Director, with effect from the
date of receipt of approval of Ministry of Information and
Broadcasting. Mr. Kumar, aged 64, is currently Advisor Technology
at Essel Group and he had been associated with the Essel Group in
various capacities since 2001 and has a rich experience in the
media and telecom fields. Mr. Kumar is also head of Broadcasting
for the Zee Network and Dish TV India Ltd and is responsible for
all its broadcast operations globally now spanning about 150
channels. He has also had a major role in setting up and operations
of India's first DTH operator Dish
TV.
2. Appointed Mr. Raj Kumar Gupta
(DIN: 02223210), as an Additional Director, with effect from the
date of receipt of approval of Ministry of Information and
Broadcasting. Mr. Gupta, aged 71, is a fellow member of Institute
of Chartered Accounts of India
engaged in practice. He carries with him rich expertise in the
field of finance.
Financial Summary
During the quarter ended December 31,
2017, Videocon d2h reported revenue from operations of INR
8.34 billion. Subscription and activation revenue came in at INR
7.63 billion. Videocon d2h achieved Adjusted EBITDA of INR 2.91
billion in Q3 FY18. Adjusted EBITDA margin expanded 60 basis points
as compared to the quarter ended December
31, 2016 and came in at 35.0% during the quarter. The
Company achieved a Net Profit after Tax of INR 309 million and
generated free cash flows of INR 1,269 million in Q3 FY18.
The Company added 0.56 million gross subscribers and 0.16
million net subscribers during Q3 FY18. Net subscribers totaled
13.41 million as of December 31,
2017. Monthly churn came in at 1.00% for the quarter. ARPU
came in at INR 208.
Subscriber acquisition costs in the form of hardware subsidies
were INR 1,714 per subscriber during the quarter. Videocon d2h had
term loans of INR 18.68 billion and total cash and short term
investments of INR 4.10 billion as of December 31, 2017.
(In INR million, unless otherwise indicated)
Q3 FY17 Q2 FY18 Q3 FY18
Key financial metrics
Revenue from operations 7,774 8,346 8,337
Subscription and activation revenue 7,112 7,701 7,630
Adjusted EBITDA 2,672 2,805 2,914
Adjusted EBITDA margin (%) 34.4% 33.6% 35.0%
Profit after tax (loss) 218 168 309
Content cost (% of revenue) 39.6% 39.7% 40.1%
Adjusted EBITDA less capex 1,157 1,174 1,885
Free cash flows 514 428 1,269
Key operating metrics
Net subscribers (million) 12.77 13.25 13.41
ARPU[6] (INR) 205 212 208
Churn per month (%) 0.87% 0.62% 1.00%
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.
Q3FY18 financial results are available
on the company website
http://www.ir.videocond2h.com.
[1] 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 December 31, 2016, and
nil for the quarters ended September
30 and December 31, 2017.
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.
[2] 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.
[3] 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.
[4] Gross subscribers mean total registered
subscribers.
[5] 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.
[6] 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