Mr Jawahar Lal Goel Chairman & Managing Director
Though I have interacted with some of you on various occasions in the past, this is the first time that I am writing to you through these pages.
Fiscal 2016 was yet another year that was full of with global economic challenges. Notwithstanding that, the Indian economy registered good economic growth as the government continued to focus on development through reforms. Efforts towards village electrification and 24X7 power supply in urban areas helped improve power quality, which gave a natural push to the consumption of pay-tv. Push for financial inclusion facilitated ease of recharge for DTH subscribers by giving them universal access to banking facilities.
The year saw your Company witness constructive growth in business both at the subscriber and profitability level. Fiscal 2016 was the second full year of net profitability for your Company.
During the year, Dish TV continued to actively contribute to the ‘Digital India’ movement by digitizing analog TV homes in DAS phase 3 & 4 markets. The product portfolio consisting of Standard Definition, High Definition, Zing and other region specific offerings increased their respective market share.
Higher investments behind the brand not only ensured higher brand scores but a stronger brand recall as well. The campaigns including, ‘Set Top Box Matlab Dish TV’ and ‘Life Masala Mar Ke’ had the desired impact while the specially designed sports packages ensured that sports fans preferred Dish TV during the prolonged cricketing season that was part of the fiscal.
As part of our strategy to increase our High-Definition market share, your Company launched brand new HD packages and campaigns to target urban markets. Your Company met considerable success and managed to substantially improve the market share of our High-Definition offering.
During the year, your Company further strengthened its presence across the country to reach existing as well as potential subscribers through a network spread across 2,297 distributors and 241,346 dealers. Your Company continued to maintain its leadership in the market and added 2.8 million subscribers at the gross level. This took our overall subscriber base to 14.5 million net subscribers as on March 31, 2016.
For the full year under review, Revenue grew from Rs. 26,668 million to Rs. 30,599 million recording 14% growth over the previous fiscal. Operating profit (EBITDA) grew from Rs. 7,331 million to Rs. 10,249 million and was up by 40% over the previous fiscal. EBITDA margin stood at 33.5%. Net profit for the year was Rs. 6,924 million as against Rs. 31 million in fiscal 2015.
In a bid to outperform customer service expectations, we re-defined and did a critical re-evaluation of our existing service procedures. I am pleased to share that this exercise led us to implement a service delivery turn-around time of four hours only.
During the year, your Company expanded its service network to touch points across the country. As we go forward, we want customer experience on the Dish TV platform to be truly unmatched and we would not stop until we get there.
Leveraging the ecommerce boom Dish TV took its entire range of product and services on board popular online shopping platforms like Paytm, Snapdeal, Amazon and Flipkart. To further enhance the digital TV experience for subscribers and build an affordable and fast deployment model for itself Dish TV selected a new browser based middleware for its next generation Set-Top-Boxes.
In a fitting recognition, Dish TV was recognized for being one of the most admired corporates that are shaping up the Indian market place and was honored with ‘The Economic Times Best Corporate Brands’ award in the DTH category during the year.
Our Company has entered fiscal 2017 with a Vision to ‘Enrich peoples’ lives by providing them with an ‘Unmatched Entertainment Service Experience’ and I am confident that we would live up to it in letter as well as in spirit.
As we go forward, the positive impact of economic initiatives undertaken by the government will start reflecting in consumer spending and would broad base the demand situation in the near future. Government’s focus on digitization all across and efforts on account of ease of doing business will result in better productivity of resources and provide more money in the hands of the common man.
I want to thank our customers, shareholders and the employees for their support as we go about building a Company that is class apart.