Cable TV
South Africa scraps digitization plans; sticks to analogue signal
NEW DELHI: The South African government has decided to abandon the digital migration project at a time when the whole world is going digital.
Expectedly, this has taken broadcasters unawares as they had been looking forward to a mid-year switch-off of analogue signals. Even the media has described the decision as shocking.
Communications Minister Faith Muthambi said in an official statement, “Seeing that none of our neighbouring countries has switched over to digital television, we have taken a decision to ignore the 17 June, 2015 ITU deadline and remain with analogue television for the foreseeable future. The government will save billions that can be used in better ways, like funding public broadcaster South Africa Broadcasting Corporation.”
This will mean that the cash-strapped South African government will not have to subsidise set-top boxes for the nation’s poorest citizens. Muthambi added, “This solves the debate – there won’t be any set-top boxes and so there is no need for encryption.”
Nagra Kudelski had won the contract to encrypt and protect transmissions for Sentech, the official transmission company.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
