CARE Ratings Nepal Limited (CRNL) has assigned ‘CARE-NP BBB (Is)’ rating to Dish Media Network Limited (DMNL) and has reaffirmed rating of ‘CARE-NP BBB’ assigned to the long-term bank facilities and ‘CARE-NP A3’ assigned to the short-term bank facilities of 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 FY19 (refers to 12 month period ended mid-July 2019), comfortable financial risk profile and debt service coverage indicators, expansion of service coverage with internet service 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, working capital intensive nature of operations and impact of COVID-19 on the business of the company. 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.
Key Rating Strength
- Track record of operation and strong brand presence in DTH service
- Experienced board & management team
- Financial and technical supports from promoter and promoter's group companies
- Growth in Subscription revenue with increase in ARPU
- Comfortable financial risk profile and debt coverage indicators
- Expansion of the service coverage with internet service
- Latest technology and capacities to increase outreach
Key Rating Weakness
- Exposed to foreign exchange fluctuation risk and incurred losses during FY19
- Competition in Industry
- High capital and technology intensive industry
- Working capital intensive nature of operations
- Impact of COVID-19 on the business of the company
About the Company
Dish Media Network Limited (DMNL) is Nepal’s leading Direct–to–Home (DTH) service provider with active customer base of around 1.13 Million as of Mid-April 2020. 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 85 number of dealers, more than 3500 number of sub dealer and 1300 plus service franchises. Sandmartin International Holding Limited, is the major shareholder of the company which holds 47% in DMNL.
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