Mehraboon Irani of Nirmal Bang Securities feels Dish TV could be a lovely long-term story as it is the biggest beneficiary of digitisation though the quarterly numbers were not too enthused.
Irani told CNBC-TV18, “Dish TV is not a company, which should be seen on a quarter-to-quarter basis, but I think clear beneficiary of digitisation. So if one looks at quarterly numbers in isolation, disappointment atleast in the top-line numbers. Even the average revenue per user (ARPU) at Rs 160 is ahead of Rs 159, which was there in the last quarter, but slightly below expectations.”
“The content cost has gone up by 15 percent, which is mainly because of the tie-up with Media Pro. The benefits should accrue later, but what is important to note is that the management has stated that the year-on-year increase in content cost will be 12 percent,” Irani added.
Irani also said, “Now if one adheres to that particular number it means the content cost for the Q4 that is March 2013 will also be up by atleast 27-28 percent vis-à-vis quarter three. So, I think looking ahead margins being under pressure, ARPUs are not going up the way possibly it was expected. The stock could remain under pressure though I don’t feel it should go below Rs 70 and still say the same thing. It could be a lovely long-term story because I think it is the biggest beneficiary of digitisation though the quarterly numbers were not too enthused.”