Dish TV shares end higher by 1.6%

Discussion in 'Banking & finance' started by saravanakumari, Dec 6, 2017.

  1. saravanakumari

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    Shares of direct-to-home operator Dish TV India wiped off their losses and ended the session up by 1.62 per cent at Rs. 81.75 on the BSE.

    After opening weak at Rs. 79.15 against the previous close of Rs. 80.45, the scrip touched an intraday high ofRs. 83.10 and a low of Rs. 78.30. In terms of equity volume, 12.24 lakh shares exchanged hands on the BSE.

    Earlier in the day, the stock plunged as much as 2.7 per cent to Rs. 78.30, its lowest since November 23 on bigger-than-expected loss.

    The company had posted September quarter loss of Rs. 17.87 crore ($2.8 million) on Tuesday vs analysts' loss estimate of Rs. 9.26 crore. The company had posted a net profit of Rs. 68.96 crore in the July-September quarter a year ago.

    Its revenue from operations came down 3.93 per cent to Rs. 748.58 crore during the quarter under review against Rs. 779.28 crore a year earlier. Total expenses were at Rs. 783.47 crore, up 5.97 per cent, against Rs.739.31 crore.

    “Average revenue per user (ARPU) strengthened to Rs. 149 while churn rate recovered to close at slightly less than 0.8 per cent per month,” the company said.

    According to HDFC Securities, broadly flat ARPU compared to last quarter and higher operating expenses were key negatives in Q2.

    But analysts say inexpensive valuations, synergies from merger with Videocon D2H, and digitisation are positives for the company.

    They say the management has reiterated guidance on synergy benefits from Videocon D2H merger, despite delay in approval from Mthe inistry of Information & Broadcasting.

    The stock is down 4.8 per cent this year up to Tuesday
     

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