DISHTV - Earnings release for the quater ended June 30, 2008

Noida, July 28, 2008: Dish TV India Limited, India’s No. 1 direct-to-home company and part of the biggest media conglomerate, Zee group, today reported first quarter gross revenues of Rs 1646  million, representing a 21% growth over the last quarter revenues in the previous fiscal. The Board of Directors in its meeting held today, has approved the unaudited Financial Results and has announced the key business metrics for the quarter that ended on a happy note of 3.4 million subscriber base.

Subhash Chandra, Chairman said, “Dishtv has delivered a robust performance in terms of revenue growth and market share driven by constant innovation and world-class services. We believe in foreseeing the future and have set a new benchmark in the DTH category by launching the much awaited, Box Free Offer. Going forward, the company will continue with a strategy that focuses both on subscriber growth and revenue enhancement. This is reflecting in a healthy 20% increase in subscription revenue. The revenue enhancement has come from multiple sources, new adoptions and higher rate of renewals as well as bandwidth charges that has now built into a steady stream.”

Commenting on the recent developments, Mr. Jawahar Goel, Managing Director, said, "Dishtv has maintained its leadership position through an improved market share of all DTH subscribers. Known for its innovation and unprecedented offerings Dishtv, has kept its league, by introducing the market defining consumer offer, Free Set Top Box. The Company has started the year well with robust operational and financial performance and, under the new management structure we are confident that the growth momentum would be sustained."

Research has showed that whilst awareness levels for the dishtv brand are high, the investment towards the box is a restraining factor that keeps customers from adopting into the category. The free STB offer addressed the need for the box investment to come down by introduction of a pack at which the box price was literally zero, upon lock in for a year for the maxi package. This was launched in the market with a fairly high decibel and immediately produced over 50% growth in acquisition rate.

The content width has crossed the 200 mark with new channels added in the quarter like News X, 9X, NDTV Imagine, India News & CNEB.

In the month of June dishtv saw appointment of its CEO, Vinay Agarwal and COO, Salil Kapoor respectively. Vinay Agarwal brings along with him a rich and valuable experience of 28 years spanning Telecom, Consumer Durable, Consultancy Services and Engineering Industries in leading organizations across the country. Prior to joining Dish TV, Vinay was associated with Grindwell Norton Limited, a Saint-Gobain Group company, as the President-Abrasives, where he created new marketing models for the company and implemented a new project to increase the business thrust and profitability. He was also the member of the Global Management Committee for Saint-Gobain Abrasives and of the Apex Committee of Saint-Gobain India.

Prior to joining Dish TV, Salil Kapoor was associated with Samsung Electronics Limited as the National Sales Head and was responsible for Consumer Electronics Revenue and Sales operations. He brings along with him a vast and valuable experience of over 17 years spanning Information Technology, Consumer Durable and Engineering Industries.

Dish TV continues to be a market leader with 56% market share in 3 player scenario on date, with sizeable sales and distribution infrastructure of 575 + distributors and 38,000 dealers across 4500 towns – once again, the largest in the category. This reach into far flung markets enables building of a diverse subscriber base across consumer segments, which are supported by its rich content of regional channel offerings.

The Table below shows the performance of Dish TV for first quarter ended June 30, 2008.

                                         Rs. Mn

Analysis of Expenses

Dish TV main expenses include subscriber related expenses, employees and administrative cost. The following table sets forth the percentage of costs that each type contributes to total expenses for the quarter ended June 30, 2008 and March 31, 2008.

                               Rs. Mn

Segment Performance

The revenue streams of the company are divided into a) DTH operations, b) Teleport Services, and c) Trading. The table below shows revenues generated out of different segments.

                   Rs. Mn

DTH Revenue includes DTH Services, Bandwidth Charges, Value Added Services etc.
Dish TV is the country’s first DTH service provider and continues to be prime mover in this segment.  DTH industry is expected to grow more than 50% in the next 3 years and Dish TV would strive to take a large share of the business. The company would continue to focus on increase in ARPU, value added services, commercial sales (e.g. hotels, restaurants, pubs, clubs, malls etc), brand building and penetration, service capability ramp up resulting in value creation for the stakeholders.

Dish TV uses the platform of NSS-6 satellite which is unique in the Indian subcontinent owing to its automated power control and contoured beam which makes it suitable for use in ITU K and N rain zones ideally suited for India’s tropical climate.

Note: This earnings release contains stand alone results that are unaudited, and prepared as per Indian Generally Accepted Accounting Principles (GAAP).

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. Dish TV India Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

About dishtv India

Essel Group - the parent company of the Zee Network – has launched this product - dishtv. It aims to be an Entertainment Provider and harbinger of the new age media in India. In a short span it has on its platform 205 National and International channels with registered 3.4 million subscribers, which is growing. dishtv offers the flexibility in content and channel packages so that the subscribers can choose and customize their own channel bouquets giving them complete power and independence. dishtv has a vast distribution network of about 575 distributors & 38,000 dealers that spans around 4500 towns across the country. Direct-to-home (DTH) television services deliver television channels directly to consumer’s homes via satellite without any need of a local cable service provider. Dishtv, India’s first DTH service provider, entertains the viewers with 185 television and 20 audio channels offering a superior picture and sound quality. With channels for the sports enthusiast, from daily dose of soaps to news, from a bevy of cartoons to infotainment, from a plethora of music channels to movie channels - its all happening on dishtv. With the complete Zee bouquet of channels, the One Alliance bouquet, and the Star bouquet, it offers the complete range of channels to its subscribers. dishtv also offers to its subscriber’s exclusive international channels such as Boomerang, TCM, and MGM.  Highly aware of prompt service orientation, dishtv has 24* 7 call centre with 1600 seats in 11 different languages at 7 different locations to take care of subscriber requirements any point of time and to ensure timely solution to problems and queries. Dishtv uses world-class technology and equipments manufactured by best suppliers in the world. The STB (Set Top Box) are sourced from a Korean manufactures. Nevertheless, dishtv STB come with a One-Year-Warranty that takes care of any technical fault free of cost for 12 months from the date of purchase

Rights Issue Disclaimer:

Dish TV India Limited proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make a rights issue of its equity shares to its existing shareholders and has filed a draft letter of offer (“DLOF”) SEBI. The DLOF is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the lead manager at www.enam.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, please refer to the section titled “Risk Factors” of the DLOF.”

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