Mumbai: Direct-to-home service provider Dish TV India Ltd on Wednesday reported a narrower loss, but a slight increase in the customer drop-out rate disappointed investors, sending its shares down as much as 6%.
The company’s churn rate rose to 1.1% per month, compared with 1% in the immediately preceeding quarter.
“Dish TV is the market leader. So the increase in churn means the company’s recent hike in the set-top box prices has worked in the favour of its competitors,” said Rohit Maheshwari, analyst with K.R.Choksey.
“The results also came in below what the market was expecting,” he added.
Shares of Dish TV, which the market values at $4.42 billion, hit an intraday low of Rs 87.85 in a weak Mumbai market.
At 2.53 p.m., the stock, which has doubled in value over the past one year, was down 3.4% at Rs 90.
Managing director Jawahar Goel attributed the increase in subscriber drop-out to inactivity post the cricket World Cup, which happened earlier this year.
“Key operating metrics continued to be in line with expectations,” Goel said in a statement. “Net loss continued with its downward trend, making bottom-line profitability visible in the coming quarters.”
The company expects to breakeven in the next one or two quarters, chief executive R.C. Venkatesh told television channel CNBC TV18.
Dish TV, which has a net subscriber base of 8.9 million, posted a standalone loss of Rs 183.2 million on net sales of Rs 460 crore.
Last year for the same period, the company had reported a loss of Rs 631.8 million on net sales of Rs 304 crore.
Dish TV, which added 725,000 new subscribers during the quarter, said its average revenue per user for April-June was stable at Rs 150.
Subscriber acquisition cost declined to a historical low of Rs 2,058, the company said.