Direct-to-home firm Dish TV India Ltd on Monday reported a 7.17 per cent decline in its consolidated net profit to Rs 80.21 crore for the third quarter ended in December 2021.
The company had reported a net profit of Rs 86.41 crore in the October-December quarter a year ago, Dish TV said in a BSE filing.
Its revenue from the operation was down 12.87 per cent to Rs 710.67 crore during the quarter under review as against Rs 815.67 crore of the corresponding quarter.
"3Q FY22 turned out to be a mixed quarter for Dish TV India Limited. Focus on gaining incremental market share helped the company ramp up gross acquisitions to almost the pre-pandemic level, though continued dependence exclusively on internal funds restricted the ability of the business to go all out thus keeping net additions under pressure," said Dish TV in an earning statement.
Dish TV total expenses were at Rs 606.56 crore, down 16.21 per cent in Q3/FY 2021-22, as against Rs 723.94 crore in the corresponding quarter.
During the quarter under review, Dish TV's subscription revenues were at Rs 645.9 crore as against Rs 744.9 crore of Q3/FY 2020-21. Its advertisement revenue was at Rs 11.3 crore as against Rs 9.6 crore.
Revenue from 'Additional marketing, promotional fee and bandwidth charges' was at Rs 38.6 crore as against Rs 42.9 crore.
Consumers typically tend to step up spending during festivals with the season traditionally accounting for the majority of the annual revenues of businesses, said Dish TV.
"Expecting a similar trend and considering the earlier subdued demand due to repeated waves of the pandemic, Diwali 2021 witnessed aggressive marketing by consumer-focused companies. While higher marketing spending did help generate incremental acquisitions, consumer spending went below par once the pent-up demand was exhausted," it said.
However, early cases of the third wave of the pandemic in mid-December too had a negative effect on consumption.
Shares of DishTV India Ltd on Thursday settled at Rs 15.35 on BSE, down 8.63 per cent from the previous close.
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