Shares of Dish TV India tanked 20 per cent on BSE to hit an eight-year low of Rs 36.05 apiece in the intra-day trade after the average revenue per user (ARPU) declined 3.2 per cent to Rs 207 in September quarter (Q2FY19) from Rs 214 in June quarter (Q1FY19). During the day, the stock traded at its lowest level since May 25, 2010.
“The lack of heavy-duty sporting events, like those in the immediately preceding quarter, however, impacted the further growth of subscription revenues on a sequential basis. Sports specific packages and related win-backs often tend to dilute post the event,” Dish TV India said in a press release.
The company’s consolidated subscription revenues declined 2.4 per cent quarter-on-quarter (QoQ) to Rs 1.45 billion against Rs 1.49 billion in the previous quarter. Net profit during the period declined 29 per cent at Rs 197 million from Rs 255 million in June quarter.
Motilal Oswal securities had expected Dish TV to maintain its high ARPU base achieved in Q1FY19 – up 1 per cent QoQ, on the higher share of HD subscribers and better product pricing. This coupled with 0.3 million net subscriber additions should lead to a modest 2% QoQ subscription revenue growth to Rs 15.2 billion, the brokerage firm had said in result preview.
At close, shares of Dish TV India stood at Rs 37 apiece, 17 per cent lower on the BSE, as compared to a 1 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped seven-fold with a combined 32.11 million equity shares changed hands on the BSE and NSE today.