Boost In Tata Sky’s Subscriber Base Helps It Achieve Huge Increase In FY19 Net Profit

Tata Sky has seen an addition of subscribers leading to a net profit of Rs 364 crore for the financial year ending on 31 March. This is a 5.7-time increase against a net profit of Rs 64 crore in the last fiscal, the Telecom Talk reports.

According to a Crisil report, Tata Sky has become the leading player in terms of revenue market share (RMS) and subscriber market share. Its market position is further supported by the high-definition subscriber base and improving churn rate.

The report adds that Tata Sky is the second largest DTH operator in India, and has industry-leading operating metrics in average revenue per user (ARPU) subscriber growth and low churn rate. Further, they have seen a consistent increase in the operating profitability, resulting in decent cash accrual in the last few years.

Tata Sky added more subscribers than its rivals in the over the nine months ended 31st December 2018. According to TRAI’s Indian Telecom Services Performance Indicators report for the third quarter of FY19, Tata Sky had 25 per cent share of the total net pay active subscriber base of around 70.49 million in 2018-end.