Monday, 25 April 2016

Videocon d2h may become second DTH to turn profitable.

The Videocon Group owned DTH company Videocon d2h has the potential of becoming the second DTH operator, after Dish TV to turn profitable at the net level in the first quarter of FY17. Videocon d2h, which hiked its monthly subscription packages by a minimum of Rs 20 early this year, is expected to narrow its net loss in the exit quarter of FY16. In the third quarter ended 31 December 2015, the company reported net loss of Rs 22 crore (Rs 220 million). The impact of the subscription pack hike will be captured in a full quarter for the first time in the April–June period. Media analysts expect Videocon d2h’s average revenue per user (ARPU) to increase by 5–6% as a result of this. The DTH operator’s ARPU in the third quarter of FY16 stood at Rs 211.
For the DTH sector, subscriber additions have been strong in the fourth quarter, mainly in the Phase III areas of digital addressable system (DAS). The T20 World Cup has also been a positive influencer. According to market estimates, the DTH sector would add around 2.3 million subscribers in the fourth quarter of FY16. 
Videocon d2h, one of the fastest-growing DTH operators, gets a market share of 25–27% of incremental subscribers that the sector adds. As of 31 December 2015, Videocon d2h had a net subscriber base of 11.27 million. In the quarter ended December, the company added 0.43 net subscribers. Almost one-third of Videocon d2h’s incremental subscribers opt for high-definition (HD) connections. 


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