New Delhi: Direct-to-home operator Dish TV India Ltd on Monday reported a consolidated net profit of Rs26.7 crore for the December quarter, down 61% from a year earlier.
The company, owned by Zee Entertainment Enterprises Ltd, had posted a net profit of Rs68.5 crore for the third quarter of 2015-16.
Total operating revenue grew 2.4% to Rs748 crore from Rs730 crore a year earlier, following the demonetisation of high currency notes by the government in November.
“Limited cash supply made people defer their DTH recharges by a few days or weeks depending on the urgency of other basic necessities,” Jawahar Goel, chairman and managing director of Dish TV said in a statement.
Goel said the impact was stronger in towns and cities in the second tier and below, as the economy in these areas mostly ran on cash. “Our subscription revenues during the quarter could have been higher by around 8% in a non-adverse scenario,” he said.
Subscription revenue grew 3.3% to Rs692.1 crore from Rs669.9 crore in 2015-16. Dish TV added 2.04 lakh subscribers during the quarter, taking its net subscriber count to 1.53 crore, reflecting about 8-10% fewer additions.
“Demonetisation has affected our rural base and new subscriber additions as well. We have witnessed a decline of 50,000 in new subscriber additions. We have seen a slight growth in January but normalcy will return by March with new modes of payment,” said Rajeev Dalmia, chief financial officer at Dish TV.
During the quarter, Dish TV announced it would merge with Videocon d2h, the direct-to-home (DTH) television arm of Videocon Industries Ltd in November. Dish TV will own a 55% stake and Videocon 45% in the new entity to be called Dish TV Videocon Ltd.
“Work continued on the Dish TV-Videocon d2h proposed merger as well with necessary applications being filed during the quarter with the Competition Commission of India (CCI) and the Stock Exchanges for obtaining their approval,” the company said in the statement.