Dish Media Network looking to raise bank facilities worth Rs.2.22 Arba; Care ratings rate the proposed facilities

Care Ratings Nepal Limited (CRNL) has assigned Rating of ‘CARE-NP BBB’ to the long term bank facilities worth Rs.448.42 Million and ‘CARE-NP A3’ to the short term bank facilities worth Rs.1780 Million of Dish Media Network Limited (DMNL).

Dish Media Network Limited (DMNL) is Nepal’s leading Direct–to–Home (DTH) service provider with active customer base of around 1 Million as of Mid-October 2018. DMNL was incorporated in 2010 after merger of two DTH provider namely Satellite Channel Pvt. Ltd. and Dish Media Network Pvt. Ltd.; and later converted to public limited on July 2, 2017. DMNL has presence all over Nepal with 72 number of dealers, more than 2500 number of sub dealer and 1200 plus service franchises. Sandmartin International Holdings Limited, Bermuda, is the major shareholder of the company which holds 47% in DMNL.

The ratings assigned to the bank facilities of Dish Media Network Limited (DMNL) derives strength from track record of operations and strong brand presence in direct-to-home (DTH) service, experienced board and management team, financial and technical supports from promoter and promoter's group companies, growth in subscription revenue with increase in average revenue per unit (ARPU) during FY18 (refers to 12 month period ended mid-July 2018), comfortable financial risk profile and debt service coverage indicators and latest technology to increase outreach.

The ratings, however, are constrained by exposure to foreign exchange fluctuation risk, competition in Industry, high capital and technology intensive industry, and working capital intensive nature of operations. Ability of the company to manage the growth and maintain profitability margins without deterioration in its financial risk profile will be the key rating sensitivities.