Dish TV Jul 02, 2007 at 02.13 PM
Jawahar Goel, MD, Dish TV India said that they expect to break even at EBITDA level by FY09. He added that a total investment of USD 1 million is being seen over the span of one year but they have no capital raising plans as of now.
Excerpts from CNBC-TV18's exclsuive interview with Jawahar Goel:
Q: What was the impact of the increase in subsidy and the marketing costs on the numbers and when can you break even?
A: In the current business plan we had estimated that we will be EBITDA positive by 2009. The subsidy level is ongoing because we are spending more money on customer education. We have increased the number of channels, so that increased our cost. Our subscriber acquisiton cost is a little below Rs 2,500.
Q: What is the average revenue per user that you clock in, at current levels?
A: Currently, our RPU's are under Rs 62.
Q: What is the market share you enjoy?
A: My company's market share is 75% and in the month of May, with a fresh acquisiton we had retained 63%. In April, it was about 68%.
Q: What subscriber base are you targetting in FY08?
A: We added 1.1 million subscribers last year and we are expecting to add almost the same number this year.
Q: That would be how many additions per week?
A: Seasonality is involved when customers are spending money, like in any other business. But on an avarage, it is about 1,00,000 subscribers every month.
Q: With competition really hotting up in this market, what is the growth rate you hope to maintain for the year? What increase in customer acquisition costs do you see?
A: The customer acquisition cost is always an issue of concern for any player in the competition. You have to spend more money in customer education, as well. But as the industry norms are, when a new competition comes, after a year when the competition settles down, the players will get a secular share. So if it is a two-palyer market, ideally, Tata Sky should have been 50-50%, where as my team has been able to do 63%. Similarly, if a third player comes, they will also have secular share on month on month basis.
Q: Do you have any capital raising plans for FY08 in addition to what you've already raised and how would you go about funding the same?
A: We have not yet finalised these plans, but the total investments for this one year we estimate, is about USD 1 million.
Excerpts from CNBC-TV18's exclsuive interview with Jawahar Goel:
Q: What was the impact of the increase in subsidy and the marketing costs on the numbers and when can you break even?
A: In the current business plan we had estimated that we will be EBITDA positive by 2009. The subsidy level is ongoing because we are spending more money on customer education. We have increased the number of channels, so that increased our cost. Our subscriber acquisiton cost is a little below Rs 2,500.
Q: What is the average revenue per user that you clock in, at current levels?
A: Currently, our RPU's are under Rs 62.
Q: What is the market share you enjoy?
A: My company's market share is 75% and in the month of May, with a fresh acquisiton we had retained 63%. In April, it was about 68%.
Q: What subscriber base are you targetting in FY08?
A: We added 1.1 million subscribers last year and we are expecting to add almost the same number this year.
Q: That would be how many additions per week?
A: Seasonality is involved when customers are spending money, like in any other business. But on an avarage, it is about 1,00,000 subscribers every month.
Q: With competition really hotting up in this market, what is the growth rate you hope to maintain for the year? What increase in customer acquisition costs do you see?
A: The customer acquisition cost is always an issue of concern for any player in the competition. You have to spend more money in customer education, as well. But as the industry norms are, when a new competition comes, after a year when the competition settles down, the players will get a secular share. So if it is a two-palyer market, ideally, Tata Sky should have been 50-50%, where as my team has been able to do 63%. Similarly, if a third player comes, they will also have secular share on month on month basis.
Q: Do you have any capital raising plans for FY08 in addition to what you've already raised and how would you go about funding the same?
A: We have not yet finalised these plans, but the total investments for this one year we estimate, is about USD 1 million.
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