MUMBAI, India, May 24, 2016 /PRNewswire/ --
Subscription and
activation revenue grew 26.4% to
INR 26.07 billion
Adjusted
EBITDA[1] grew 31.5% to INR 8.01
billion
Net
subscriber[2] base stands at 11.86
million
Highest net subscriber additions
for 6th year in a row[3]
Record approximately 800,000 gross
subscriber[4] additions during the quarter
ended March 31, 2016
Videocon d2h Limited (NASDAQ: VDTH) ("Videocon d2h" or the
"Company") announced its financial results for the year ended
March 31, 2016.
(Logo:
http://photos.prnewswire.com/prnh/20160519/806055 )
Key highlights for the year ended March 31, 2016:
- Revenue from operations grew 22.2% year on year to INR 28.56
billion;
- Subscription and activation revenue grew 26.4% to INR
26.07 billion;
- Adjusted EBITDA grew 31.5% to INR 8.01 billion;
- Adjusted EBITDA margin expanded by 200 basis points to
28.1%;
- ARPU[5] grew from an average INR 196 in
fiscal 2015 to an average INR 207 in fiscal 2016;
- Gross and net subscribers increased by 2.65 million and 1.68
million subscribers, respectively, during the year;
- Net subscribers base at 11.86 million; and
- Churn came in at 0.73% per month in fiscal 2016 as compared to
0.80% in fiscal 2015
Key highlights for the quarter ended
March 31, 2016:
- Revenue from operations grew 23.4% year on year to INR 7.72
billion;
- Subscription and activation revenue grew 20.9% year on
year to INR 7.06 billion;
- Adjusted EBITDA grew 25.0% year on year to INR 2.19
billion;
- Adjusted EBITDA margin expanded by 40 basis points year on year
to 28.4%;
- ARPU increased from INR 202 in Q4FY15 to INR 214;
- Gross and net subscribers increased by 0.79 million and 0.59
million subscribers during the quarter, respectively; and
- Churn came in at 0.58% per month
Commenting on the fiscal 2016 results and company outlook,
Executive Chairman of Videocon d2h, Mr. Saurabh Dhoot, said "Fiscal 2016 has been a
landmark year for Videocon d2h, as it was the first fiscal year
after our NASDAQ listing, and it has been a great journey. I am
delighted to share that our strong net subscriber additions, rising
revenue realization and operating leverage benefit resulted in
31.5% Adjusted EBITDA growth for fiscal 2016, in spite of increases
in service tax rates and the implementation of a new 'clean
India initiative' tax during the
year."
"During the year, we accomplished numerous technological
advancements, such as the development of HD Smart Connect Set Top
Box, our new connected set-top box which allows customers to view
normal DTH services as well as internet and over-the-top content
and applications. This development demonstrates our expertise and
innovation in creation, delivery and execution of technologically
advanced products."
Speaking on the business outlook for the DTH sector, Mr. Anil
Khera, CEO of Videocon d2h, said "There have been a series of
industry developments in fiscal 2016, which we believe will provide
for growth opportunities in the DTH sector in India. The implementation of Phase III
digitization of the Digital Addressable Cable TV System program of
the Government of India that began
in January 2016 was an example of
such a development. It led to a surge in new subscriber additions
for various distribution platforms. While the momentum slowed down
as many state high courts issued a temporary stay order against
digitization, we are still seeing higher subscriber additions from
Phase III markets as compared to previous years."
"In addition, the deadline for Phase IV digitization is
December 31, 2016, which we believe
covers approximately 80 million television homes."
Financial Summary
(In INR million, unless otherwise indicated)
Q4FY15 Q4FY16 % growth FY15 FY16 % growth
Key financial metrics
Revenue from operations 6,253 7,715 23.4% 23,377 28,559 22.2%
Subscription and activation revenue 5,834 7,056 20.9% 20,628 26,068 26.4%
Adjusted EBITDA 1,752 2,191 25.0% 6,092 8,013 31.5%
Adjusted EBITDA margin (%) 28.0% 28.4% 26.1% 28.1%
Net loss (757) (212) 72.0% (2,727) (922) 66.2%
Content cost (% of revenue) 38.4% 37.5% 36.2% 37.8%
Key operating metrics
Gross subscribers(million) 13.09 15.74 20.2% 13.09 15.74 20.2%
Net subscribers (million) 10.18 11.86 16.5% 10.18 11.86 16.5%
ARPU (INR) 202 214 5.9% 196 207 5.6%
Churn (%) 0.85% 0.58% 0.80% 0.73%
During the year ended March 31,
2016, Videocon d2h achieved strong subscription and
activation revenue growth of 26.4% to INR 26.07 billion as compared
to INR 20.63 billion in fiscal 2015. Revenue from operations grew
22.2% year on year to INR 28.56 billion during the year.
Videocon d2h achieved Adjusted EBITDA of INR 8.01 billion in
fiscal 2016 as compared to INR 6.09 billion in fiscal 2015,
reporting a growth of 31.5%. Adjusted EBITDA margin expanded 200
basis points to 28.1% during the year. This resulted in a
significant improvement in net loss, from INR 2,727 million in
fiscal 2015 to INR 922 million in fiscal 2016.
The Company added 2.65 million gross subscribers and 1.68
million net subscribers during fiscal 2016. Net subscribers totaled
11.86 million as of March 31, 2016.
Monthly churn came in at 0.73% for the year as compared to a
monthly churn of 0.80% in fiscal 2015. Subscriber acquisition costs
in the form of hardware subsidies were INR 1,776 per subscriber
during the fourth quarter of fiscal 2016.
The company had term loans of INR 23.15 billion and total cash
and short term investments of INR 7.21 billion as of March 31, 2016.
Conference call's dial in
details
The results conference call time and details are provided
below.
Call #1 Call #2
Date May 25, 2016 May 25, 2016
Time 11:00 am India time 6:30 pm India time
1:30pm HK time 9:00pm HK time
6:30am UK time 2:00pm UK time
1:30am NYC time 9:00am NYC time
Dial in details
India +91 22 6746 8376 / +91 22 3960 0752 +91 22 6746 8376 / +91 22 3960 0752
Hong Kong 800 964 448 800 964 448
Singapore 800 101 2045 800 101 2045
USA 1866 746 2133 / +1 323 386 8721 1866 746 2133 / +1 323 386 8721
UK 0808 101 1573 / +44 20347 85524 0808 101 1573 / +44 20347 85524
Pin code Not required Not required
Playback details
India +91 22 3065 2322 / +91 22 6181 3322 +91 22 3065 2322 / +91 22 6181 3322
USA 1855 4360 715 / 1863 9490 105 1855 4360 715 / 1863 9490 105
Playback ID 76076 03597
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 registration
statement on Form F-4 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.
FY16 audited financial results
are available on the SEC web site and
company web site http://ir.videocond2h.com
1. We calculate EBITDA by calculating profit or loss after tax
as increased by income tax expense, net finance costs, finance
income, other income, depreciation, amortization and impairment and
reduced by other income. Adjusted EBITDA is EBITDA adjusted for the
recognition of fair value of the Employee Stock Option Plan 2014
recognized as an expense over the vesting period which amounted to
INR 117.77 million for the fiscal year 2016 and INR 29.45 million
for the fourth quarter of fiscal year 2016. We will recognize ESOP
expenses in fiscal 2017 as well. 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
the 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 the 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 our
Company, limiting their usefulness as comparative measures. We
believe that Adjusted EBITDA helps identify underlying trends in
our business that could otherwise be distorted by the effect of the
expenses that are excluded calculating Adjusted EBITDA. We believe
that Adjusted EBITDA enhances the overall understanding of our past
performance and future prospects and allows for greater visibility
with respect to key metrics used by our management in our 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. Highest net subscriber additions amongst satellite operators
based on publicly available information and company estimates.
4. Gross subscriber means total registered subscribers.
5. Average Revenue Per User ("ARPU") is calculated by dividing
our subscription and activation revenue by the average of our net
subscribers for the period. Subscription and activation charges are
considered on a gross basis without netting off the recharge
margins or discounts provided to the distributors.
Investor relations contact:
Nupur Agarwal
nupur.agarwal@d2h.com
+91-22-4255-5000
Dana Diver
TeamVideocond2h@taylor-rafferty.com
+1-212-889-4350
SOURCE Videocon d2h