Direct to home television operator Dish TV is expected to maintain bottomline growth for the second consecutive quarter. According to a CNBC-TV18 poll, the company is likely to report first quarter net profit at Rs 40 crore against net loss of Rs 16.05 crore in the year-ago period. Strong operational performance and revenue growth may support bottomline.
In Q4FY15, it had reported net profit (for the first time in its history) at Rs 35 crore.
Total income from operations is seen rising 20.5 percent to Rs 771.6 crore in the quarter ended June from Rs 640.7 crore in the corresponding quarter of last fiscal. The topline growth may also be aided by launch of Zing (digital service for regional channels) and increased collection from local cable operators (LCOs) due to partial implementation of package wise billing.
Analysts expect net subscribers to fall sequentially as in last quarter it had a high base on account of Cricket World Cup 2015. Net subscriber additions may be around 3.7 lakh in Q1FY16 against 4.04 lakh in March quarter.
Operating profit (earnings before interest, tax, depreciation and amortisation) may jump 46 percent year-on-year to Rs 229.5 crore and margin may expand 520 basis points to 29.7 percent in the quarter gone by. Margin expansion may be due to operating leverage & cost controls by JV formed by both Essel group companies, Dish TV & Siti, for collective bargaining power.
Analysts expect a slight increase in average revenue per user (ARPU) to Rs 182 from 179 on sequential basis due to full quarter effect of 4-8 percent hike in charges in February and 1 extra day during the quarter.
Key factors to watch out for are phase III/IV roll out and collection from LCOs.
The stock has seen a dream run, up 60 percent since May 2015.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
