Directors' Report
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Directors’ Report To the Members, BUSINESS OVERVIEW Your Directors are pleased to present the 27th (Twenty The Financial Year 2014-15 has been a year of Seventh) Annual Report and the Audited Financial outstanding performance for Dish TV. By executing Statements of the Company for the Financial Year clear and consistent strategies, the company has ended March 31, 2015. delivered strong operational growth and excellent financials - making it the first DTH Brand to turn FINANCIAL RESULTS profitable. The year under review witnessed increase The Financial Performance (Standalone) of your in all folds including gross revenue, gross subscriber Company for the Financial Year ended March 31, 2015 base, EBITDA and ARPU and Net Profit. is summarized below: Dish TV offers a wide array of multi-brand and (` In Lakhs) multi product portfolio to suit the needs of different consumer segments. It has been a conscious effort of Particulars Year ended Year ended your Company to lead on the content front for both HD March 31, 2015 March 31, 2014 and SD channels. Continuing to lead the category with Sales & Services 278,164 250,898 largest bouquet of 43 HD channels, dishtruHD+ has Other Income 5,468 6,602 taken the HD TV viewing experience to the next level Total Income 283,632 257,500 whilst also building a high-ARPU base of HD users Total Expenses 283,531 261,284 that helps in retention too. Evaluating the increase Profit/(Loss) before Tax & 101 (3,784) in trend on the usage of recording, Dish TV now only Prior Period Item offers recorder ready set-top boxes which allows Prior Period Item - (11,637) Indian consumers to taste the power of pause/play Profit/(Loss) before Tax 101 (15,421) and other recording features. With the up-gradation Provision for Taxation (net) - - of customers from Standard Definition (SD) to High Profit/(Loss) after Tax 101 (15,421) Definition (HD) and uptake from new launches, Profit/(Loss) for the Year 101 (15,421) the Company expects to see an increasing trend in Add: Balance brought (197,225) (181,804) the ARPU. The introduction of long term offers on forward recharges, will aid retention. Adjustment for (738) - Amongst several initiatives taken this year, the big depreciation success story is attributed to Zing Digital. With the launch Amount available for (197,862) (197,225) appropriations of ZING, Dish TV forayed into a regionally customized DTH service which provides an opportunity to maximize Balance Carried Forward (197,862) (197,225) its foothold as DAS rolls out further into phases 3 and There have been no material changes and 4, covering small towns and rural markets. Zing digital commitments that have occurred after close of the is now present in West Bengal, Tripura & 3 districts of financial year till the date of this report, which affect Assam, Orissa, Maharashtra, Andhra Pradesh, Tamil the consolidated financial position of the Company. Nadu and Kerala. Thinking ahead of the curve, Dish TV DIVIDEND created an entirely new offering for consumers whose needs are largely regionally driven content and shop The Board takes the pleasure to report that your for pocket friendly subscription alternates. ZING brand Company becomes the first Indian Direct To Home is positioned comfortably between the DTH offering of (‘DTH’) operator to have profits in a financial year. With Doordarshan on the one hand and pay DTH brands on sustained focus on the business, your Company has the other, offering customized regional content at value reported a profit of ` 101.45 Lacs during the financial for money prices. Understanding the target group was year under review. However, with a view to conserve the key in introducing Zing Digital. The consumer in the resources for future business requirements and this segment has a high propensity intake for regional expansion plans, your Directors are of view that content and their purchase behavior, therefore, too is the current year’s profits be ploughed back into the driven by an offering of maximum regional & relevant operations and hence no dividend is recommended content rather than the entire bouquet of content which for the year under review. turns out to be an expensive proposition for them. 21 With launch of the Direct to Home services in Sri Lanka in coming years. Your Company continued to play the by Dish T V Lanka (Private) Limited, subsidiary of your role of the leader of the industry with bringing new Company, the brand - Dish TV has now become a and innovative products and services into the category multi-national brand. This is a case in point having the and setting benchmarks for others to follow. Dish TV most exhaustive distribution network plan charted for has built and continues to sustain abundant capacity, the region and the next stepping stone for the brand. beaming from 2 different satellites, offering the largest bouquet of content. All this packaged at consumer Being the pioneer, the effort of Dish TV has always friendly tiers that suit diverse consumer needs for been to make entertainment accessible in the most content across different genres and languages. convenient of ways to the consumers. A few examples of such offerings are - DishOnline, stemming from Growth would be supreme and so will be the revenues high penetration of smart phones and internet, making Dish TV surely a brand to reckon with as we the Indian consumer today is spending increasing strive to enhance consumers TV viewing experience. time on alternate screens like the laptop, tablet SUBSIDIARY OPERATIONS & smartphone, away from the conventional TV viewing. Understanding the new dynamics of evolving Subsidiary in Sri Lanka consumer trends of multi-screen behavior, this Your Company, upon the approval of Board of product provides LIVE TV, on-demand movies, catch- Directors, incorporated a Joint Venture (‘JV’) Company up TV & Video shows at the press of a button on the app. with Satnet (Private) Limited, a Company incorporated Introducing value added services (VAS) like Anandam under the Laws of Sri Lanka, in the name and style of and Music Active, enticing today’s consumer who ‘Dish T V Lanka (Private) Limited’ for providing Direct wants more from his TV entertainment. Music Active to Home Services in Sri Lanka, on April 25, 2012 with a service fulfills the need of music-lovers by providing paid-up share capital of 1 million Sri Lankan Rupees. music across 10 genres 24X7. Do It Yourself services Your Company holds 70% of the paid-up share capital empower the consumer to take complete control of and Satnet (Private) Limited holds 30% of the paid- his entertainment needs, whether it’s about online up share capital. Dish T V Lanka (Private) Limited recharge, adding a channel, tracking account details, has received the requisite licenses and permissions activating a service and much more; via easy modes from regulatory authorities and has commenced its like Missed Call, SMS and Online. commercial operations. The Company has also been With the increase in number of “more than one registered as a Board of Investment (‘BOI’) approved TV households”, the focus lies on expanding the Company in Sri Lanka. The registration with BOI subscriber base with multi TV connections. Multi TV grants various benefits to the company including duty connections empower the consumer to enjoy their free imports of the equipment and set top box for one entertainment on their second TV set at less than half year, tax holiday of 7 years etc. the pack price versus their subscription on the first Subsidiary in India TV. Initiatives like these have consistently made Dish TV, India’s Most Trusted Brand for the consecutive Your Company, upon the approval of Board of 3 years in a row. To take it further, this year Dish TV Directors and the Members of the Company, acquired made inroads at the international level as a brand by the entire share capital of Xingmedia Distribution winning 3 awards at the most prestigious advertising Private Limited (’Xingmedia’) on March 24, 2014. Upon awards festival, Cannes Lions. requisite approvals, the name of Xingmedia has been changed to ‘Dish Infra Services Private Limited’ (‘Dish During the year under review, your Company continued Infra’). Post approval of Members of the Company to engage subscribers by providing wholesome by way of Special Resolution passed by Postal entertainment experience through relevant content, on Ballot, the entire non-core business of the Company demand services and the door step service & support. (undertaking pertaining to the provision of infra The positive effect of the steps taken by the Company support services to the subscribers for facilitating coupled with the continuous efforts to control the costs the DTH services including the instruments which yielded positive results in all fronts of the business. are required for receiving DTH signals such as set It also provided an edge over competition and the top boxes(STB), dish antenna, Low Noise Boxes (LNB) 22 benefit of such service infrastructure will yield benefit and other customer related services including call the Company in trading the shares. The Company has centre services and repairs) has been transferred to paid the annual listing fee for the Financial Year 2015- Dish Infra with effect from April 1, 2015. Dish Infra has 16 to the said Stock Exchanges. commenced its commercial operations (including call The Company also paid the annual listing fee to the center and back end support service to the Company) Luxembourg Stock Exchange in respect of its Global in the first quarter of the Financial Year 2015-16. Depository Receipts (‘GDR’). Upon nomination by the Company, an Independent DEPOSITORIES Director of the Board has been appointed as an Independent Director on the Board of Dish Infra Your Company has arrangements with National (Company’s material non-listed Indian Subsidiary) in Securities Depository Limited (‘NSDL) and Central compliance with the provisions of the listing agreement.