Cable TV
Cable operators demand scrapping of entertainment tax, threaten to black out news channels
MUMBAI: Cable operators and control room owners in the western state of Maharashtra are up in arms over what they term heavy handed treatment from the authorities on the issue of entertainment tax arrears.
They are now demanding the complete scrapping of the tax saying it is impossible to implement in a rational manner and have instead suggested that the government charge a one time tax on the purchase of new television sets.
Matters came to a head after a recent directive from the government to get tough on defaulting operators following which certain operators were arrested and control rooms seized.
The issue has been hanging fire for over six months following the doubling of entertainment tax per connection per month from Rs 15 to Rs 30 in municipal areas and from Rs 10 to Rs 20 in other parts of the state. It may be recalled that operators went on strike over the issue in August 2000 after which a committee representing operators, the government and consumers was set up to resolve the issue.
Mumbai-based Live Satellite Media promoter Atul Saraf, who is on the committee representing cable operators accused the government of putting forth unreasonable demands.
Saraf said a number of options were being considered which included blacking out all news channels or even a total shutdown similar to what was witnessed in August. If the government still refused to come around they would move the courts, he said.
Despite meetings with revenue minister Ashok Chavan and one with finance minister Jayant Patil last month, there appeared no solution in sight, Saraf said.
Saraf cited the situation prevailing in the eastern state of West Bengal to buttress his argument, where he said a one-time tax was paid on the purchase of new television sets. “West bengal charges no entertainment tax so why should there be one here?” he asks.
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.
