Dish TV to add 2 m subscribers in FY09

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Dish TV to add 2 m subscribers in FY09

Dish TV in its Q1 numbers, has posted net loss of Rs 125 cr for the quarter ended June 2008 vs Rs 115 cr loss in last quarter. Jawahar Goel, MD, said this year they are going to add 2 m subscribers. He expects an an increase of equity and Rs 1,140 crore from the rights issue in the coming period.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Dish TV Q1 net loss at Rs 125 cr ALSO READ See latest News about Dish TV India See previous management interviews See what other Experts & Brokerages are saying about Dish TV India Dish TV India BSE | NSE 25/05/12 Are Mutual Funds betting on Dish TV India?

Dish TV has announced its first quarter numbers. It has posted net loss of Rs 125 crore for the quarter ended June 2008 as against loss of Rs 115 crore in previous quarter.

Jawahar Goel , MD, Dish TV , said this year they are going to add two million subscribers. The business expects to be in the black by Q2 of the next financial year.

Goel expects an an increase of equity and Rs 1,140 crore from the rights issue in the coming period.

Excerpts from CNBC-TV18's exclusive interview with Jawahar Goel:

Q: Despite a 21% increase QoQ in net sales, we have seen operating losses go up and net loss as well. What are the reasons for these losses and by when do you think at the operational level that you would go in the black?

A: There were some exceptional items in this quarter. One was the foreign exchange loss on which we had to make a mark-to-market entry. We had paid about Rs 3 crore for tying up the long-term loan to the bank. That was the fee paid as arrangement fee to the bank.

Otherwise our EBITDA losses are the same. But we have acquired more subscribers, almost 1,20,000 more, the SCC (SCC Distribution - Satellite and TV distribution equipment over Coax and Cat5) of which has also been taken care of in the same EBITDA losses.

Q: If you are saying that your EBITDA losses are the same as in the pervious quarter, you'll have reported an EBITDA loss of Rs 59 crore. This time it has come in at Rs 66.5 crore and you are explaining Rs 3 crore as bank cost and another Rs 3 crore as forex. But where are the losses going down? When do you expect that you will be in the green at the EBITDA level?

A: Last year we acquired a million subscribers and the subscriber acquisition cost has been based on a million subscribers. This year we are going to add two million subscribers. The SCC will also go in this deal, but as our revenues are going up, this quarter we had seen 21% increase in revenues.

On the YoY basis for the entry period and the last quarter, we had been doubling our revenues as per the past record. That's why the EBITDA losses will be there for acquiring more numbers. We will be in the black by Q2 of the next financial year.

Q: What kind of equity dilution are you looking at?

A: There is no dilution, but an increase of equity and Rs 1,140 crore is what we are expecting from the rights issue in the coming period.