Indian DTH operator Dish TV is seeking shareholder approval to borrow up to Rs30bn (US$488m) and raise no more than Rs5bn (US$82m) through non-convertible debentures in a private placement.
Shareholders have until 6 September to return their postal…
Indian DTH operator Dish TV is seeking shareholder approval to borrow up to Rs30bn (US$488m) and raise no more than Rs5bn (US$82m) through non-convertible debentures in a private placement.
Shareholders have until 6 September to return their postal ballots and vote on whether the group can borrow more money over and above its paid-up share capital and free reserves.
The company posted Rs4.19bn (US$69m) in share capital in its FY 2014 results and Rs3.13bn (US$51.2m) in reserves and surplus. It detailed Rs7.8bn (US$128m) in existing long-term borrowings.
“Your company has embarked upon a growth path and is constantly reviewing opportunities for expansion of its business operations,” it said in a note to shareholders.
Dish TV became India’s first satellite broadcaster when it launched in 2003, but since then the market has been joined by Tata Sky, Sun Direct, Reliance Digital, Airtel Digial and Video D2h.
India tweaks DTH licence conditions and fees
The company’s DTH licence was initially issued on a 10-year basis and was due to expire in September 2013, but it was given temporary breathing space to let the Telecom Regulatory Authority of India (TRAI) develop a renewal policy. The regulator also took the opportunity to launch a comprehensive review on whether it should update DTH licence conditions more generally.
In a series of recommendations published on 23 July, TRAI said licences should be issued on a 20-year basis, and may be renewed for 10 years at a time.
Another point of contention for DTH operators was their licence fees, and under the new regime this could be cut from 10% of gross revenue to 8% of adjusted gross revenue, where certain taxes are excluded.
India’s regulatory changes come as consultants at Media Partners Asia expect pay-TV revenues to leap 44% from US$49bn in 2013 to US$70.5bn by 2018 for the whole of Asia.
Although the group said net new customers in 2013 for the region was 26 million, representing the lowest annual growth since 2007, it anticipated the number growing again during the next two years.
“Amidst slower, though robust, growth, MPA predicts consolidation and a focus on operating leverage,” said the consultancy.
“MPA also sees platforms and broadcasters starting to increasingly focus on non-linear multiscreen consumer offerings that embrace over-the-top media distribution with the initial emphasis on legitimate subscription video-on-demand platforms. Piracy and illegal streaming video services are a key challenge though anti piracy legislation in Singapore could be a welcome antidote to IP theft.”
