Dish TV India shares dropped 4 percent on May 15 after the company reported a 21.5 percent decline in its consolidated revenue of Rs. 504.8 crore for the March 2023 quarter as against Rs 642.70 crore a year back.
Subscription revenues for Dish TV India were down 32.3 percent to Rs 389 crore, contributing 77.1 percent of its total revenue in Q4 of FY23. The company's advertisement revenue was at Rs 10.2 crore and it received Rs 91.7 crore from marketing and promotional fees during the same period.
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In addition to the drop in revenue, Dish TV India's earnings before interest, taxes, depreciation, and amortisation (EBITDA) plummeted 93.5 percent to Rs 23.50 crore in March 2023 from Rs 359.23 crore in the March 2022 quarter. The company's net loss narrowed to Rs 1,720.6 crore compared to Rs 1,997.6 crore a year ago. Net loss stood at Rs 2.85 crore in the December 2022 quarter, indicating that the dismal operating performance and lower topline impacted profitability.
"Big league private broadcasters, despite not being fully in the free DTH game, continued to throw sweeteners like free viewing of big-ticket properties that ultimately impacted overall revenues of the DTH industry," Dish TV said in a statement.
The quarter also saw Dish TV India having to go for impairment of several assets, including Rs 280 crore for assets under development, Rs 110.5 crore for the brand, Rs 567.87 crore for customers and distribution relationships, and Rs 328 crore for property, plant, and equipment.
The company also had an impairment of goodwill of Rs 621.09 crore of its goodwill and intangible assets acquired from Videocon d2h, a company that was merged with Dish TV.
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"The goodwill and other intangible assets, acquired pursuant to merger of the company with erstwhile Videocon d2h Limited, are periodically tested for impairment to ensure that they are carried at no more than their recoverable amount," the company said. "Post this impairment, there is no remaining value of Goodwill or other Intangible Assets relating to the Videocon d2h business.”
The company’s market cap has increased 12.54 percent in the last one year, however, it has declined over 16 percent this year to date. At 9.57am, the scrip was trading 2.48 percent down on the NSE at Rs 15.70 with benchmark Nifty Media trading 0.15 percent up at 1,704.30 points.
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