MUMBAI, India, May 29, 2017 /PRNewswire/ --
Adjusted
EBITDA[1] grew
27.1% year on year to INR
10.18 billion
Net
Subscriber[1]
Base stands at 12.91
million
Videocon d2h Limited (NASDAQ: VDTH) ("Videocon d2h" or the
"Company") announced its financial results for the year ended
March 31, 2017.
Key highlights for the fiscal year ended
March 31,
2017:
- Revenue from operations came in at INR 30.72 billion, which is
up 15.5% year on year if the Company was to compute its revenue
from operations for Fiscal 2017 under its former accounting
treatment[2];
- Subscription and activation revenue came in at INR 28.08
billion;
- Adjusted EBITDA grew 27.1% year on year to INR 10.18
billion;
- Adjusted EBITDA margin came in at 33.1%. Adjusted EBITDA margin
would have been up 280 basis points year on year if the
Company was to compute its revenue from operations for Fiscal 2017
under its former accounting treatment;
- Profit after tax came in at INR 304 million;
- Free cash flows[3] came in at INR 1.17 billion;
- Gross subscribers[4] and net subscribers increased
by 2.24 million and 1.05 million, respectively, during the
year;
- Net subscribers base at 12.91 million; and
- Churn[5] came in at 0.80% per month in Fiscal 2017
as compared to 0.73% in Fiscal 2016.
Key metrics Fiscal 2017
Gross subscriber additions (million) 2.24
Net subscriber additions (million) 1.05
Adjusted EBITDA (INR million) 10,181
Profit after tax (INR million) 304
Free cash flow (INR million) 1,169
Key highlights for the quarter ended
March 31,
2017:
- Revenue from operations came in at INR 7.55 billion.
- Subscription and activation revenue came in at INR 6.89
billion;
- Adjusted EBITDA came in at INR 2.36 billion; Adjusted EBITDA
margin came in at 31.3%;
- Gross and net subscribers increased by 0.47 million and 0.14
million subscribers during the quarter, respectively.
Commenting on the Fiscal 2017 results and company outlook,
Executive Chairman of Videocon d2h, Mr. Saurabh Dhoot, said "I am excited to share that
Fiscal 2017 has been a yet another landmark year for Videocon d2h,
as the Company achieved net profit and free cash flow breakeven.
The Company reported 27.1% year on year growth in EBITDA, despite
moderation due to Government of India's demonetization policy during the
November 2016, which also coincided
with the seasonally stronger second half. More importantly, our
Adjusted EBITDA per subscriber per month grew a healthy 13.0% year
on year to INR 69. This clearly demonstrates the strength of our
business and our ability to monetize the subscribers we added in
Phase III and Phase IV Digitization markets.
During Fiscal 2017, we announced the scheme of amalgamation with
Dish TV to create the fastest growing and the second largest pay TV
Company in the world, according to Company estimates. We have now
received the necessary approvals from the equity shareholders of
Videocon d2h and the Competition Commission of India. The Company has started working on an
integration plan and has appointed Price Waterhouse Coopers,
Deloitte and Aon Hewitt to work on
post-merger integration along with the management of Videocon d2h
and Dish TV India."
Speaking on the business outlook for the DTH sector, Mr. Anil
Khera, CEO of Videocon d2h, said "There has been numerous industry
developments during Fiscal 2017, which we believe will provide for
growth opportunities in the DTH sector in India. Recently, the government shared
information on the applicable Goods and Service Tax (GST) rate for
DTH. The GST rate of 18% for DTH operators could reduce tax
payments in Fiscal 2018 and beyond."
Financial Summary
(In INR million, unless otherwise indicated)
Q2 Q3
FY17 FY17
Q1 FY17 (Adjusted)(1) (1) (1) Q4 FY17(1) FY17(1)
Key financial metrics
Revenue from operations 7,633 7,762 7,774 7,549 30,717
Subscription and activation revenue 6,970 7,107 7,112 6,886 28,075
Adjusted EBITDA 2,519 2,625 2,672 2,364 10,181
Adjusted EBITDA margin (%) 33.0% 33.8% 34.4% 31.3% 33.1%
Profit after tax (loss) 27 148 218 (87) 304
Content cost (% of revenue) 38.7% 38.7% 39.6% 42.5% 39.9%
Adjusted EBITDA less capex 887 907 1,157 981 3,932
Free cash flows 138 199 514 318 1,169
Key operating metrics
Net subscribers (million) 12.29 12.52 12.77 12.91 12.91
ARPU[6] (INR) 211 209 205 196 207
Churn per month (%) 0.49% 0.95% 0.87% 0.87% 0.80%
(1) The Company adopted a change in the accounting treatment of
entertainment tax effective April 1,
2016. This change resulted in operating revenue being
presented net of entertainment tax, effective from April 1, 2016. The Company's financial and
operating highlights for Fiscal 2017 have been adjusted to reflect
this change. Prior to April 1, 2016,
entertainment tax was accounted for under operating expenses, thus
operating revenue was presented without deduction of entertainment
tax. For more information regarding this change of accounting
treatment, see the Company's Form 6-K dated August 5, 2016. As a result, the Company's
financial and operating highlights for periods after April 1, 2016 are not comparable with its
financial and operating highlights for periods prior to
April 1, 2016 due to this change in
accounting treatment of entertainment tax effective April 1, 2016.
During the year ended March 31,
2017, Videocon d2h reported revenue from operations of INR
30.72 billion. Revenue from operations grew 15.5% year on year on a
like to like basis if the Company was to compute its revenue from
operations for Fiscal 2017 under its former accounting
treatment[3]. Subscription and
activation revenue came in at INR 28.08 billion.
Videocon d2h achieved Adjusted EBITDA of INR 10.18 billion in
Fiscal 2017 as compared to INR 8.01 billion in Fiscal 2016,
reporting a growth of 27.1%. Adjusted EBITDA margin expanded 280
basis points on a like to like basis if the Company was to compute
its revenue from operations for Fiscal 2017 under its former
accounting treatment[3]. Adjusted
EBITDA margin was 33.1% during the year. The company achieved a Net
Profit after Tax of INR 304 million as compared to a loss of INR
922 million in Fiscal 2016.
The Company added 2.24 million gross subscribers and 1.05
million net subscribers during Fiscal 2017. Net subscribers totaled
12.91 million as of March 31, 2017.
Monthly churn came in at 0.80% for the year as compared to a
monthly churn of 0.73% in Fiscal 2016. Subscriber acquisition costs
in the form of hardware subsidies were INR 1,923 per subscriber
during the fourth quarter of Fiscal 2017.
The company had term loans of INR 19.95 billion and total cash
and short term investments of INR 4.61 billion as of March 31, 2017.
Conference call's dial in
details
The results conference call time and details are provided
below.
Call #1 Call #2
Date Tuesday, May 30,2017 Tuesday, May 30,2017
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 3960 0752/ 1 800 120 1221 +91 22 3960 0752/ 1 800 120 1221
Hong Kong 800 964 448/ +852 3018 6877 800 964 448/ +852 3018 6877
Singapore 800 101 2045/ +65 3157 5746 800 101 2045/ +65 3157 5746
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 3065 2322
USA 1 855 4360 715/ 1 863 9490 105 1 855 4360 715/ 1 863 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 annual
report on Form 20F 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.
FY17 audited financial
results are available on the company
web site 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 108.25 million for Fiscal 2017, INR 21.01 million
for Q1 of Fiscal 2017, INR 21.01 million for Q2 of Fiscal 2017, INR
21.01 million for Q3 of Fiscal 2017 and INR 45.23 million for Q4 of
Fiscal 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
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 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 adopted a change in the accounting treatment of
entertainment tax effective April 1,
2016. This change resulted in operating revenue being
presented net of entertainment tax, effective from April 1, 2016. The Company's financial and
operating highlights for Fiscal 2017 have been adjusted to reflect
this change. Prior to April 1, 2016,
entertainment tax was accounted for under operating expenses, thus
operating revenue was presented without deduction of entertainment
tax. For more information regarding this change of accounting
treatment, see the Company's Form 6-K dated August 5, 2016. As a result, the Company's
financial and operating highlights for periods after April 1, 2016 are not comparable with its
financial and operating highlights for periods prior to
April 1, 2016 due to this change in
accounting treatment of entertainment tax effective April 1, 2016. Using the Company's former
accounting treatment of entertainment tax which the Company applied
prior to April 1, 2016, revenue from
operations would have been INR 33.0 billion and Adjusted EBITDA
margin would have been 30.9% for Fiscal 2017, respectively and
revenue from operations would have been INR 8.1 billion and
Adjusted EBITDA margin would have been 29.1% for Q4 of Fiscal 2017,
respectively.
4. 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.
5. Gross subscribers mean total registered subscribers.
6. 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.
7. For Fiscal 2017, Average Revenue Per User ("ARPU") is
calculated by dividing revenue from operations by the average of
the Company's net subscribers for the period. For prior periods,
ARPU was calculated by dividing the Company's subscription and
activation revenue by the average of its net subscribers for the
periods. Subscription and activation charges were considered on a
gross basis without netting off the recharge margins or discounts
provided to the distributors. As a result, ARPU for periods after
April 1, 2016 are not comparable with
ARPU for periods prior to April 1,
2016 due to this change in the Company's definition of ARPU
effective April 1, 2016.
1. 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.
2. The Company adopted a change in the accounting treatment of
entertainment tax effective April 1,
2016. This change resulted in operating revenue being
presented net of entertainment tax, effective from April 1, 2016. The Company's financial and
operating highlights for Fiscal 2017 have been adjusted to reflect
this change. Prior to April 1, 2016,
entertainment tax was accounted for under operating expenses, thus
operating revenue was presented without deduction of entertainment
tax. For more information regarding this change of accounting
treatment, see the Company's Form 6-K dated August 5, 2016. As a result, the Company's
financial and operating highlights for periods after April 1, 2016 are not comparable with its
financial and operating highlights for periods prior to
April 1, 2016 due to this change in
accounting treatment of entertainment tax effective April 1, 2016. Using the Company's former
accounting treatment of entertainment tax which the Company applied
prior to April 1, 2016, revenue from
operations would have been INR 33.0 billion and Adjusted EBITDA
margin would have been 30.9% for Fiscal 2017, respectively and
revenue from operations would have been INR 8.1 billion and
Adjusted EBITDA margin would have been 29.1% for Q4 of Fiscal 2017,
respectively.
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. For Fiscal 2017, Average Revenue Per User ("ARPU") is
calculated by dividing revenue from operations by the average of
the Company's net subscribers for the period. For prior periods,
ARPU was calculated by dividing the Company's subscription and
activation revenue by the average of its net subscribers for the
periods. Subscription and activation charges were considered on a
gross basis without netting off the recharge margins or discounts
provided to the distributors. As a result, ARPU for periods after
April 1, 2016 are not comparable with
ARPU for periods prior to April 1,
2016 due to this change in the Company's definition of ARPU
effective April 1, 2016.
SOURCE Videocon d2h