The year in review has been truly a watershed year for your Company, the industry as well as the Indian economy. Momentous changes have been ushered in, which augur well for value creation at all levels in our field of operations.
First and the foremost, your company took the lead to trigger consolidation in the DTH industry by announcing the merger (subject to regulatory approvals) with d2h Limited thus forming one of the largest pay TV platforms in the world. The merged entity will have the scale, sweep and momentum to reshape the Indian distribution industry as well as provide a secure roadmap for sustained unlocking of value for its stakeholders. We have always been the pioneers in the spaces we operate in and this first consolidation in the DTH space reinforces our leadership and commitment to redefine our business to enhance value for our stakeholders.
The industry witnessed the introduction of transformative regulations by the TRAI, which for the first time seeks to genuinely empower customers in an open and transparent model, which will seek to do away with the anomalies of the present system of trade between broadcasters, platforms and consumers in a manner which will be truly beneficial to all players in the industry. Dish TV wholeheartedly welcomes the initiatives by TRAI and believes, this will lead to smooth and accelerated growth for the industry. For Dish TV this move will be value accretive and will help improve the profitability of the company as well as provide transparency and freedom of choice to its valued customers.
At the macro event, the demonetization exercise has given a huge fillip to the digital transactions ecosystem which is hugely accretive for the DTH industry which relies on 100% prepaid and electronic recharge model. The more people adopt electronic payment modes, the more your Company benefits as it reduces the inefficiencies, costs and lost revenues due to delayed recharges. This again is a fundamental change in the transaction model which will provide a significant boost to both the topline as well as bottom line of your Company in the years to come.
The introduction of GST was another watershed event which is significantly accretive for your Company. Apart from immediate reduction in the rates of taxation for your Company by the subsumption of entertainment tax, the Company also benefits from the elimination of Special Additional Duty on imported CPE’s and also in the significant overall ease of transactions that the GST regime brings to the table. This will also increase the overall productivity, as the transactions operate largely and primarily through the single window of GST instead of the multiple and complex state and central levy system currently in operation.
Operationally your Company did face some temporary headwinds in Q3 and Q4 FY 2017 due to the impact of demonetization, however with the long term benefits of these changes outlined above far outweigh any short term blips and the results thereto will need to be viewed through that lens.
Notwithstanding these headwinds, your company made significant progress adding 2.6 million subscribers during the year, ending the year with 15.5 million net subscribers. The topline was recorded at 3014.4 crores and your company generated a PAT of 109.3 crores remaining profitable for the third consecutive year. Your company remains the most profitable player in the Indian Industry.
We are extremely excited about the future with our consolidated entity bringing the synergies and scale of being one of the largest pay TV platform in the world, we remain equally excited with the opportunities thrown at us by virtue of the changing regulatory landscape in India as well as the changing macroeconomic dynamics in India. There has never been a better time for all of these to fall in place and we look forward to the opportunities as well as challenges to unlock greater and greater value for all of our investors, employees, partners and other stakeholders.
Jawahar Lal Goel