Dish TV rallies 4% on positive sentiment post Airtel and Warburg Pincus deal for DTH biz
Dish TV shares rallied as much has 4 percent in morning Wednesday on positive sentiment after the deal to stake sale in direct-to-home arm by Airtel with Warburg Pincus.
Country’s largest telecom operator Bharti Airtel on Tuesday said an affiliate of Warburg Pincus, a global private equity firm, would acquire up to a 20 percent equity stake in Bharti Telemedia, the direct-to-home subsidiary of Airtel, for approximately USD 350 million.
Under the deal, Bharti Airtel will sell 15 percent stake in Bharti Telemedia and the remaining 5 percent will be sold by another Bharti entity, it added. Post the deal, Airtel will own 80 percent stake in the DTH arm.
Bharti Telemedia, which operates under the Airtel TV brand, had approximately 14 million subscribers and a revenue of about USD 550 million during the 12-month period ended September 2017.
Dish TV had net subscriber base of 15.9 million at the end of September 2017, adding 0.188 million during the quarter.
Dish TV had posted a loss of Rs 17.87 crore for the quarter ended September 2017, against loss of Rs 13.94 crore in June quarter and profit of Rs 68.96 crore in year-ago.
Revenue during the quarter fell 4 percent year-on-year to Rs 748.58 crore but increased 1.3 percent on sequential basis while EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 7.4 percent QoQ to Rs 216.1 crore and margin expanded by 170 basis points to 28.9 percent in Q2FY18.
At 9:27 hours IST, the stock price was quoting at Rs 82.55, up 2.93 percent on the BSE.