Cable TV
Sidhu’s cable, DTH tax plan gets Punjab cabinet nod
MUMBAI: Entertainment lately seems to be affected the most with one tax after another — the GST and tax on watching television programmes. Now, in a ‘blow’ to local cable network companies, entertainment tax will be levied on DTH and cable connections in Punjab. DTH operators however will now have a level playing field with the cable networks.
State local bodies minister Navjot Singh Sidhu told the cabinet that the nominal tax would ensure accountability on the part of cable operators.
After the introduction of GST from 1 July, 2017, the tax levied by the state government had been withdrawn. The state cabinet has however approved levying of the tax through panchayats and municipalities through an amendment proposed in the next session of the Vidhan Sabha where it has the two-thirds majority, PTI reported.
No entertainment tax, however, has been proposed for cinemas, multiplexes and amusement parks.
The urban and rural bodies will now be allowed to impose and collect a nominal tax of Rs 5 per DTH connection and Rs 2 per local cable connection per month with the enactment of ‘The Punjab Entertainments & Amusements Taxes (Levy & Collection by Local Bodies) Bill 2017.’
With around 44 lakh cable connections and 16 lakh DTH in Punjab, the bodies are expected to collect Rs 450-470 million (approximately Rs 369 million and Rs 96 million, respectively).
Sidhu had been alleging tax evasions by Fastway Network, a company linked to the previous dispensation. In August, the minister had urged the CM’s office to take a call on the recovery of allegedly evaded tax of Rs 200 billion from Fastway.
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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.
