The Hindu Business Line : Dish TV Q3 net loss widens

New Delhi, Jan. 25 Dish TV has sunk deeper in the red, and reported a net loss of Rs 116.44 crore for the third-quarter ended December 31, 2007 against a net loss of about Rs 92 crore in the corresponding quarter of the previous year.

The company has been aggressive in acquiring Direct-to-Home customers to retain its lead. The Essel Group company’s net sales, however, grew 48 per cent to Rs 112 crore during the third quarter against Rs 75 crore in the corresponding quarter of the previous year.

Dish TV, which has a 64 per cent share of the DTH market, has increased its cost of goods and services to Rs 105.78 crore, now accounting for nearly half of its total expenses. This is an almost 60 per cent jump from what it spent on the same in the corresponding quarter the previous year. The company said it subsidises each customer by Rs 1,200.

“This quarter has seen sustained emphasis on subscriber acquisition and improvement in the quality of subscriber base, through aggressive marketing initiatives. This is reflecting in a healthy 26 per cent increase in subscription revenue. Going forward, the company will continue with a strategy that focuses both on subscriber growth and revenue enhancement,” said Mr Subhash Chandra, Chairman, in a statement.

Operating margins

The company said it has enhanced efficiencies over the last few months, resulting in an improvement in operating margins. It recently announced an alliance with Future Group, which invested Rs 250 crore for a 4.9 per cent stake in the company.

“A key challenge for us, as a leader in the DTH category, is to keep our innovative streak alive.,” said Mr Jawahar Goel, Managing Director, Dish TV.