FY 2016 Q1 results DTH operators make more profit than MSOs

In Q1 of FY2016, MSO players see a not-so-ideal quarter as profits slipped. While carriage revenues accounted for a large part of revenues of the MSOs, it wasn’t enough to provide for strong growth for these MSOs. However, DTH players such as Dish TV and Airtel Digital TV saw their revenues growing in double digits of 15-19% during the quarter. We take a closer look at these results.



Hathway Cable and Datacom (Hathway) reported a 5% increase in its operating profit to Rs.32.7 crore in the first quarter against Rs.30.98 crore in Q4FY2015. It however saw a large rise of 88% in operating profits from Q1FY2015 which stood at Rs.3.9 crore.

The reason for the growth was the high carriage revenue increase of 8%. The carriage revenue accounted for 31.69% of the MSOs total revenue and stood at Rs.83.8 crore during the first quarter from Rs.77.5 crore in Q4FY2015. Hinduja Ventures which has MSO IndusInd Media & Communication Ltd. (IMCL) or InCable saw its total operating income increase to Rs.26.63 crore during Q1FY2016 as against Rs.25.46 crore in the same quarter last year.

This is an increase of 4.6% during the quarter. The net profit after tax for the quarter grew by 7.95% from Rs.22.14 crore to Rs.23.90 crore during the same quarter last year.

DTH operators:

Dish TV’s Q1FY2016 operating revenues was up 19.2% Y-o-Y to Rs.736.7 crore and subscription revenues was up 20.6% Y-o-Y to Rs.682.8 crore. EBITDA for the quarter stood at Rs.236.8 crore compared to Rs.156.5 crore in the corresponding quarter last fiscal. Profit after Tax (PAT) for the quarter was Rs.54.2 crore compared to a loss of Rs.15 crore in the corresponding quarter last fiscal.

Also read: India has 73.06 Million DTH subscribers

Airtel’s Digital TV services saw revenues grow by 15.8% to Rs.684.8 crore in Q1FY2016 from Rs.591.5 crore in Q1FY2015. It also saw a growth of 7.9% in comparison with Q4FY2015 as it stood at Rs.634.7 crore. The DTH segment of Airtel also for saw a growth in profits before taxes from a large loss during the same quarter last year. During this quarter it saw a profit before tax revenue of Rs.41.5 crore in comparison with a loss of Rs.62.6 crore in Q1FY2015.

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4 Comments on "FY 2016 Q1 results DTH operators make more profit than MSOs"


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August 19, 2015 6:28 pm 6:28 PM

It is really surprising when people say that DTH operators are hiking tariffs every month. I have been using Tata sky for 7 years and hikes have not been that steep as you mentioned. Last two years, they only hiked my base pack once. Also would like to mention that entertainment tax and other cess are part of state government not central. Blaming Modi for prices of DTH is not reasonable. Even there isn’t a PSU in DTH sector to check hikes.

August 19, 2015 5:08 pm 5:08 PM

Why you are fighting over Modi. Modi is not giving even 0.001% of his salary to any citizen like sunny. I don’t watch government related news because I know Indian government is not for Indians.
Like Indian roads are not made with good quality material. If they make good quality roads then how they eat money again and again.

August 19, 2015 5:03 pm 5:03 PM

Why DTH operators and Hathway charge money even for free to air channels ?

For example Hathway charge 3rs per month for Shraddha MH1 channel.