Videocon d2h adds 0.59 million net subscribers in 1Q 2016

• Record approximately 800,000 gross subscriber additions during the quarter ended March 31, 2016
• Gross and net subscribers increased by 2.65 million and 1.68 million subscribers, respectively, during the year
• Net subscribers base at 11.86 million

MUMBAI, India — Videocon d2h Limited (NASDAQ: VDTH) (“Videocon d2h” or the “Company”) announced its financial results for the year ended March 31, 2016.

The Company added 2.65 million gross subscribers and 1.68 million net subscribers during fiscal 2016. Net subscribers totaled 11.86 million as of March 31, 2016 (11.27 million at end-2015). Monthly churn came in at 0.73% for the year as compared to a monthly churn of 0.80% in fiscal 2015. Subscriber acquisition costs in the form of hardware subsidies were INR 1,776 per subscriber during the fourth quarter of fiscal 2016.

Key operating metrics

                             Q4FY15  Q4FY16  % growth   FY15   FY16  % growth
                             ------  ------  --------  -----  -----  --------
Gross subscribers(million)    13.09   15.74     20.2%  13.09  15.74     20.2%
Net subscribers (million)     10.18   11.86     16.5%  10.18  11.86     16.5%
ARPU (INR)                      202     214      5.9%    196    207      5.6%
Churn (%)                     0.85%   0.58%            0.80%  0.73%

Commenting on the fiscal 2016 results and company outlook, Executive Chairman of Videocon d2h, Mr. Saurabh Dhoot, said “During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products.”

Speaking on the business outlook for the DTH sector, Mr. Anil Khera, CEO of Videocon d2h, said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the Government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

“In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million television homes.”