Videocon d2h adds 0.43 million net subscribers in 4Q 2015

• Gross and net subscribers increased by 0.67 million and 0.43 million subscribers during the quarter, respectively;
• Closing gross subscribers at 14.95 million and net subscribers base at 11.27 million; and
• Churn came in at 0.73% per month

MUMBAI, India — Videocon d2h Limited (NASDAQ: VDTH), India’s fastest growing pay TV company (“Videocon d2h” or the “Company”) announced its financial results for the quarter ended December 31, 2015.

The Company added 0.67 million gross subscribers and 0.43 million net subscribers during the quarter. Gross subscribers totaled 14.95 million and net subscribers totaled 11.27 million as of December 31, 2015. Monthly churn came in at 0.73% for the quarter and 0.80% for the nine months ending December 31, 2015, which is marginally ahead of the company guidance.

Key operating metrics

                            Q3FY15  Q3FY16  % growth
                            ------  ------  --------
Gross subscribers(million)   12.47   14.95     19.8%
Net subscribers (million)     9.82   11.27     14.8%
ARPU (Rs)                      195     211      7.3%
Churn (%)                    1.02%   0.73%

Speaking on the Phase III digitization implementation, Mr. Anil Khera, CEO of Videocon d2h, said, “Phase III digitalization has begun. The Ministry of Information & Broadcasting maintained their deadline and instructed broadcasters to switch off analog signals in Phase III digitization areas. In the first few days of January 2016, we saw strong pick up in subscriber additions in cities that come under Phase III digitization. Recently, a few state high courts issued a stay order on implementation of Phase III digitization for 1-3 months. This was in line with our expectations of the digitization being a staggered process.

We estimate around 50 million television homes come under Phase III digitization, of which 24-25 million television homes are already on the digital platform. Thus, the target market under Phase III digitization is the remaining 25-26 million television homes that are currently on analog cable.”