7/31/2019 Dish TV Earnings Release for the Q1, 2012

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DISH TV INDIA LIMITED

EARNINGS RELEASE FOR THE QUARTER ENDED JUNE 30, 2012

Dish TV India Limit edFC- 9, Sector 16 A, Film City, NOIDA 201301, UP, India

Tel: +91 120 469 8401

DISH TV REMAINS FREE CASH POSITIVE FOR THE SECOND CONSECUTIVE QUARTER

ADDS 504 THOUSAND SUBSCRIBERS WHILE DIGITIZATION PLAYS HIDE & SEEK

HEALTHY 5% SEQUENTIAL GROWTH IN SUBSCRIPTION REVENUES

AVERAGE REVENUE PER USER (ARPU) IMPROVES TO Rs.156 FROM Rs.151 IN THE PREVIOUSQUARTER

SUBSCRIBER ACQUISITION COST (SAC) AT Rs.2, 145

Highlights

Dish TV added 504 thousand new subscribers in the quarter ended June 30, 2012achieving a total of 13.4 mil l ion gross and 9.8 mil l ion net subscr ibers at the end of the

per iod.

Total standalone operating revenues for the f irst quarter stood at Rs. 5,200 mil l ion,recording a growt h of 12.9% as compared t o t he corresponding per iod l ast f i scal.

Subscript ion revenues for the quarter were Rs. 4,556 mil l ion, recording a growth of16.2% as compar ed t o th e corresponding peri od last fi scal.

Subscriber Acquisition Cost (SAC) recorded at Rs. 2,145 compared to Rs 2,127 in theimmediat ely preceding quar ter .

EBITDA at Rs. 1, 556 mil li on record ed a signif icant growt h of 38. 7% as compar ed t o t hecorresponding peri od last fi scal. EBITDA mar gin for t he quart er st ood at 29. 9%.

Net loss at Rs. 323 mil l ion; down from Rs. 490 mil l ion in the immediately precedingquar ter .

NOIDA, India; July 19, 2012 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE: DISHTV) today

report ed f ir st quart er f iscal 2013 st andalone unaudit ed operati ng revenues of Rs 5,200 mil l ion,

recor ding 12.9 % growt h over t he corre spondi ng period l ast fi scal. EBITDA of Rs. 1, 556 mil li on

register ed a signif icant 38.7% incr ease over t he corresponding quart er last f iscal. EBITDA

margin f or t he quart er st ood at 29.9%.

The Board of Directors in i ts meeting held today, has approved and taken on record the

st andalone unaudited result s of Dish TV for t he quart er ended on June 30, 2012.

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Mr. Subhash Chandra, Chairman, Dish TV India Limi t ed, said, The t elevision distr i but ion

industry is on the threshold of a sea change in the way it has operated all these years.

Mandatory digit izat ion, though deferred by four months, raises the bar for quality televis ion

viewing while promising to correct the i l ls associated with analog cable. DTH, which started as

a f ragment of the dis t r ibut ion industry p ie is now already the prefer red medium for watchingtelevis ion.

Though t he post ponement of t he digit i zat ion deadline came as a negati ve surpr ise, we hope

that the Oct ober 30 t h t im el ine wi l l be adhered to, he added.

With much t o look forward to, Dish TV remains wel l prepared for t he digi t izat i on run wi th i ts

eff ic ient ground infrastructure and abil i ty to seed set top boxes within a short turnaround

t ime, said Mr. Chandra.

Mr. Jawahar Goel, Managing Direct or, Dish TV, said, The f ir st quart er w it nessed a part ial

comeback post the sluggishness before that. However, enhanced consumer demand owing todigit izat ion is yet to ful ly ref lect in acquisit ion numbers. Nevertheless, sensing DTHs growing

popular ity over competit ion, Dish TV recently init iated a pr ice hike at the entry level as well

as across standard definition packs.

Whi le some restr a in in customer demand in the shor t t erm cannot be ru led out , the net

impact going forward is going to be ARPU accretive. Moreover, with digit izat ion around the

corner, subscr ipt ion revenues are expected to increase as viewers sample better content on

their televis ion. The government, at i ts end, has been sending f irm signals to the industry that

there w ould be no fur ther ex tension of the deadl ine, he added.

Comment ing on the f irst quart er perf ormance, Mr. Goel said, Dish TV maint ained it s

leadership share while continuing to focus on the quality of subscr ibers joining the platform.Churn sust ained it s downw ard m ovement , c losing at 1% per m onth, whi le ARPU st rengthened t o

Rs. 156, mainly due to the pr ice hikes taken previously. Eff ic iencies at the cost front helped

enhance operating margins despite normalized lease rentals f lattening the top- l ine growth.

Enhanced offer fee, coupled with higher number of subscr iber adds sequential ly, maintained

subscr iber acquisit ion cost largely in l ine w it h the pr evious quart er.

Net l oss of Rs. 323 mi ll ion w as adversely imp act ed by for eign exchange loss of Rs. 138 mil li on.

At the cash f low front, Dish TV continued to be free cash posit ive for the second consecutive

quar ter , said Mr .Goel.

The recently launched Dish truHD+, a High Definit ion (HD) box capable of digital recording,

rem ains a key driver of HD subscri bers on the pl at f orm . Dish TV garnered a 25% incre men t al

share of HD addit ions dur ing the quarter. This becomes all the more signif icant consider ing

that unlike most DTH platforms; Dish TV activates only exclusive HD packs for its HD

subscribers.

Dish truHD+ lends a huge advantage over other DVRs in the market by offer ing unlimited

recording capacity, due to its compatibi l i ty with any external USB device, which enables

subscr ibers to simpl y plug and play and build an ent ire l ibrary of t heir f avourite pr ogrammes.

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Dish TV India Limi t ed cont inues to be t he largest DTH Company in India and t he w hole of Asia

Pacif ic and is one of t he largest DTH platf orms in the World .

Condensed statement of operati ons:

The table bel ow shows the condensed st atem ent of operat ions for Dish TV India Limi t ed for t he

f i rs t quar ter ended June 12 compared t o t he quar ter ended March 12:

Quarter ended Quarter ended % Growt h

Rs. mi lli on June 2012 March 2012 Q o Q

Operat ing revenues 5,200 5,247 (0.9)

Expenditure 3,644 3,805 (4.2)

EBITDA 1,556 1,442 7.9

Other Income 106 94 12.8

Depreciation 1,512 1,678 (9.9)

Financial expenses 473 348 35.9

Profit / (Loss) before tax (323) (490) -

Provision for tax 0 0 -

Profi t / (Loss) aft er t ax (323) (490) -

Expenditure:

Dish TVs primary expenses include cost of goods and services, personnel cost, administrativecost, advertisement expenses and selling expenses. The table below shows each as apercentage of t ota l revenue:

Rs. million

Quarter ended

June - 2012%of Grossrevenue

Quarter ended

March - 2012% of Grossrevenue

%Growth

Q o Q

Cost of goods& services 2,578 49.6 2,632 50.2 (2.0)

Personnel cost 202 3.9 191 3.6 5.7

Administrativecost 212 4.0 253 4.8 (16.2)

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Advertisementexpenses 135 2.6 268 5.1 (49.6)

Sell ing &

distributionexpenses 516 9.9 461 8.8 11.9

Total Expenses 3643 70.0 3,805 72.5 (4.2)

Note: This earnings release contains unaudited standalone quarterly results that are prepared as

per Indian Generally Accepted Accounting Principles (GAAP).

Caution Concerning Forward-Looking Statements:

This document includes cer ta in forward- looking statements. Such forward- looking statements involveknown and unknown r isks, uncertainties and other factors which may cause Dish TVs actual results,per formance or achievements, or industry resul ts, to be mater ia l ly d i f ferent from any future resul ts,performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Dish TVs present & future businessstr ategies and the environment in w hich Dish TV wi l l operate in t he fut ure. Among the import ant f actors

that could cause Dish TVs actual resul ts, per formance or achievements to d i f fer mater ia l ly f rom thosein the forward- looking statements include, among others, the condi t ion of and changes in India spol i t i ca l and economic stat us, government pol ic ies, appl icable laws, t he Indian media and ent er ta inmentsect ors, and int ernat ional and domesti c event s having a bearing on Dish TV s business and t he media andenter ta inment sectors, par t icu lar ly in regard to the progress of changes in those sectors regulatoryregimes, and such other factors beyond Dish TVs control. Dish TV India Limited is under no obligation toand expressly d iscla ims any such obl igat ion t o, updat e or a l t er i t s forward- looking stat ements, w hetheras a resul t of new inf ormation, fut ure events, or ot herwise.

About Dish TV India Limi ted:

Dish TV is Asia Pacifics largest direct-to-home (DTH) company and part of Indias biggest mediaconglomerate the Zee Group. Dish TV has on its platform more than 400 channels & services including22 audio channels and over 40 HD services with more than 13.4 mil l ion gross subscribers as of June 30,

2012. Dish TV uses the NSS-6 satell i te platform which is unique in the Indian subcontinent owing to itsautomated power control and contoured beam which makes it suitable for use in ITU K and N rain zonesideally suited for Indias tropical cl imate. The company also acquired transponders on the Asiasat 5platform which increased its bandwidth capacity by 216 MHz to reach a total of 648 MHZ, the largestheld by any DTH player in the country. The Company has a vast distr ibution network of over 1400distr ibutors & over 90,000 dealers that span across 8,278 towns in the country. Dish TV customers areserviced by four 24* 7 call centres with over 1600 seats in 11 different languages to take care ofsubscr iber requirements at any point of t ime. For more information on the company, p lease visi twww.d ish tv . in