Videocon d2h Limited: Quarter Ended September 30, 2017 - Earnings Release
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
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 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.
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.
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SOURCE Videocon d2h
