MUMBAI, India, July 25, 2016 /PRNewswire/ --
Adjusted
EBITDA[2] grew
32.4% year on year to
INR 2.52 billion
Net
subscriber[3] base stood
at 12.29 million
Videocon d2h Limited (NASDAQ: VDTH) ("Videocon d2h" or the
"Company") announced its financial results for the quarter ended
June 30, 2016.
Key Highlights:
- Revenue from operations grew 23.5% year on year to INR 8.19
billion;
- Subscription and activation revenue grew 23.9% to INR 7.52
billion;
- Adjusted EBITDA grew 32.4% to INR 2.52 billion;
- Adjusted EBITDA margin increased by 210 basis points year on
year to 30.8%;
- ARPU[4] came in at INR 219;
- Gross subscribers[5] and net
subscribers increased by 0.60 million and 0.43 million subscribers,
respectively, during the quarter;
- Net subscribers base at 12.29 million;
- Churn[6] came in at 0.49% per month;
and
- Free cash flow came in at INR 138 million
Key metrics Q1FY17
Gross subscriber additions (million) 0.60
Net subscriber additions (million) 0.43
Adjusted EBITDA (INR million) 2,519
Profit after tax (INR million) 27
Commenting on the results and company outlook, Executive
Chairman of Videocon d2h, Mr. Saurabh
Dhoot, said "I'm delighted to share that the first quarter
of fiscal 2017 has been a landmark quarter for our Company in its
enduring journey. In this quarter, we have had a positive profit
after tax and achieved free cash flow breakeven. This is a great
achievement.
"In line with our focus on paying down term loans, the Company
recently pre-paid further term loans, strengthening our balance
sheet further. We have significantly de-levered our balance sheet
and become a stronger company going from strength to strength,
reducing term loans by around USD 200
million since our IPO, with over USD
55 million repaid in the current fiscal year."
Speaking on the results, Mr. Anil Khera, CEO of Videocon, d2h
said "We are happy to report that Adjusted EBITDA for the first
quarter of fiscal year 2017 grew 32.4% year on year, which is
primarily a result of strong subscriber growth, higher revenue
realizations and better operating margins. During the quarter, we
expanded our retail network in areas that come under India's Phase III and Phase IV Digitalization
program. We are happy to announce our strategic tie-up with
Vodafone to enable recharge using their well established m-pesa
digital wallet and at Vodafone outlets, as it will give our
customers an easy and efficient way to recharge their d2h account
at their convenience."
Financial Summary:
(In INR million, unless otherwise
indicated)
% growth
Key financial metrics Q1FY16 Q4FY16 Q1FY17 year on year
Revenue from operations 6,628 7,715 8,185 23.5%
Subscription and activation revenue 6,073 7,056 7,523 23.9%
Adjusted EBITDA 1,903 2,191 2,519 32.4%
Adjusted EBITDA margin (%) 28.7% 28.4% 30.8%
Profit after tax (loss) (244) (212) 27
Content cost (% of revenue) 37.0% 37.5% 36.1%
Adjusted EBITDA less capex 373 455 887 137.8%
% growth
Key operating metrics Q1FY16 Q4FY16 Q1FY17 year on year
Net subscribers (million) 10.64 11.86 12.29 15.5%
ARPU (INR) 205 214 219 6.8%
Churn per month (%) 0.46% 0.58% 0.49%
During the quarter ended June 30,
2016, subscription and activation revenue grew 23.9% year on
year to INR 7.52 billion. Revenue from operations grew 23.5% year
on year to INR 8.19 billion.
Videocon d2h generated Adjusted EBITDA of INR 2.52 billion,
reporting a growth of 32.4% year on year. Adjusted EBITDA margin
expanded 210 basis points year on year to 30.8% during the quarter.
Content cost came in at 36.1% of revenue as compared to 37.0% of
revenue a year ago.
The Company reported profit after tax for the first time since
its inception of INR 27 million during the first quarter of fiscal
2017. This compares to a net loss of INR 244 million during the
first quarter of fiscal 2016.
The Company added 0.60 million gross subscribers and 0.43
million net subscribers during the first quarter of fiscal 2017.
Net subscribers totaled 12.29 million as of June 30, 2016. Churn came in at 0.49% per month
for the quarter as compared to 0.46% during the same quarter last
year. ARPU grew by 6.8% year on year to INR 219.
Subscriber acquisition costs in the form of hardware subsidies
were INR 1,872 per subscriber.
The Company had term loans of INR 21.87 billion and total cash
and short term investments of INR 6.12 billion as of June 30, 2016. The Company repaid term loans
amounting to INR 3.87 billion in the current fiscal year. With
this, the Company has reduced total term loans by over INR 13
billion since its IPO.
Conference Call: Dial-in Details
The results conference call time and details are provided
below.
Call #1 Call #2
Date July 26, 2016 July 26, 2016
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 6746 8376 / +91 22 3960 0752 +91 22 6746 8376 / +91 22 3960 0752
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 6181 3322 +91 22 3065 2322 / +91 22 6181 3322
USA 1855 4360 715 / 1863 9490 105 1855 4360 715 / 1863 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 registration
statement on Form F-4 filed with the SEC and available at
http://www.sec.gov. All information provided in this earnings
release 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 earnings release.
Q1 FY17 financial results
are available on the SEC web site and
company web site ir.videocond2h.com
1. We calculate 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 our 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 our 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 our results of operations. Free cash flow as defined
herein may not be comparable to other similarly titled measures
used by other companies.
2. We calculate 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 the recognition of
fair value of the Employee Stock Option Plan 2014 recognized as an
expense over the vesting period which amounted to INR 117.77
million for the fiscal year 2016, INR 29.45 million for the fourth
quarter of fiscal year 2016 and INR 21.01 million for the first
quarter of fiscal year 2017. 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 our
Company, limiting their usefulness as comparative measures. We
believe that Adjusted EBITDA helps identify underlying trends in
our business that could otherwise be distorted by the effect of the
expenses that are excluded when calculating Adjusted EBITDA. We
believe that Adjusted EBITDA enhances the overall understanding of
our past performance and future prospects and allows for greater
visibility with respect to key metrics used by our management in
our financial and operational decision-making.
3. 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
4. Average Revenue Per User ("ARPU") is calculated by dividing
our subscription and activation revenue by the average of our net
subscribers for the period. Subscription and activation charges are
considered on a gross basis without netting off the recharge
margins or discounts provided to the distributors.
5. Gross subscribers means 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.
SOURCE Videocon d2h