Cable TV
Den Networks reports higher revenue, lower PAT in Q3-2014
BENGALURU: Indian cable TV distribution company Den Networks Limited (Den Networks) reported 22.9 per cent consolidated revenue growth to Rs 297.24 crore in Q3-2014 as compared to the Rs 241.83 crore in Q3-2013 and a 7.5 per cent growth from Rs 276.58 crore in the immediate trailing quarter. YTD, Den Networks reported consolidated revenue of Rs 849.25 crore during nine months – 2014 which was 29 per cent more as compared to the Rs 658.54 crore during nine months (9M) – 2013. During FY 2013, Den Network’s Operating revenue was Rs 934.65 crore.
PAT (after minority interest) for the current quarter was down (59.1) per cent to Rs 7.02 crore in Q3-2014 as compared to the Rs 17.17 crore in Q3-2013 and was (37.2) per cent lower than the Rs 11.18 crore in the immediate trailing quarter. During 9M-2014, the company’s PAT at Rs 28.35 crore was down (37) per cent as compared to the Rs 44.94 crore in the corresponding nine month period of last year.
Let us look at the other Q3-2014 figures reported by Den Networks
Cable revenue for Q3 -2014 was Rs 281.00 crore as compared to Rs 229.66 crore in Q3 FY’13, up 22 per cent y-o-y and 7 per cent more than the Rs 263.32 crore in Q2-2014. Over 9M-2014, cable revenue was up 31 per cent to Rs 807.16 crore as compared to the Rs 617.18 crore in 9M-2013.
Cable EBIDTA in Q3-2014 was up 44 per cent to Rs 91.95 crore from Rs 63.63 crore in Q3-2013 and was up 3 per cent from Rs 89.43 crore in Q2-2014.During 9M-2014 EBIDTA was 80 per cent higher at Rs 267.21 crore than the Rs 148.64 crore in 9M-2013.
Den Networks Total expense for Q3-2014 at Rs 238.63 crore was up 17.19 per cent as compared to the Rs 203.63 crore in Q3-2013 and 6.3 per cent more than the Rs 224.43 crore in Q2-2014. YTD, the company’s Total expense during 9M-2014 at Rs 692.75 crore was 23.7 per cent more than the Rs 560.20 crore in 9M-2013. The company reported Total expense of Rs 777 crore in FY 2013.
The networks content cost in Q3-2014 at Rs 95.33 crore was 15 per cent higher than the Rs 82.93 crore in Q3-2013 and was 5.3 per cent more than the Rs 90.54 crore in the immediate trailing quarter. During 9M-2014, Den Networks paid Rs 270.88 crore towards content cost, which was 19.3 per cent more than the Rs 227.03 crore in 9M-2013. During FY 2013, the company paid Rs 298.8 crore towards this cost head.
Den Networks finance cost more than doubled (up 2.08 times) in Q3-2014 to Rs 24.40 crore from Rs 11.69 crore in Q3-2013 and was up 0.5 per cent from Q2-2014’s Rs 24.28 crore. YTD, in 9M-2014, the company paid Rs 696.94 crore which was 2.28 times the Rs 30.72 crore in 9M-2013. During FY 2013, finance cost was Rs 40.78 crore.
The company says that out of a total subscriber base of 1.3 crore homes, approximately 0.57 crore homes have been converted to digital. It claims to be present in 27 out of a total of 41 Phase 1 and 2 cities and approximately 0.5 crore set top boxes have been deployed in these markets.
Den Networks further says that it has an estimated analog base of 0.8 crore homes in its Phase 3 and 4 markets. The company says that is well capitalised to meet the deployment requirements of its existing subscriber base in these cities. More than 0.07 crore set top boxes have already been installed and the pace of deployment is expected to pick up rapidly as the deadline approaches. The company says that it has also launched digital services in several major cities and towns of Uttar Pradesh, Maharashtra, Bihar, Rajasthan and West Bengal over the last few months.
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.
