Cable TV
Q2-2016: Ortel YoY revenue up 24.6 percent, PAT more than doubles
BENGALURU: The Bibhu Prasad Rath-headed regional cable television and broadband internet player Ortel Communications Ltd (Ortel) has reported a 24.6 percent growth in revenue from operations (TIO) at Rs 45.79 crore as in the quarter ended 30 September 2015 (Q2-2016, current quarter) as compared to the Rs 36.74 crore in the corresponding year ago quarter. TIO in the current quarter was also higher by 12.8 percent as compared to the Rs 40.6 crore in the immediate trailing quarter. Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal,
Notes: 100,00,000 = 100 lakh = 10 million = 1 crore
The numbers mentioned in this report are standalone.
The company reported more than a doubling of PAT (up 2.3 times) to Rs 2.83 crore (5.9 percent margin) as compared to the Rs 1.23 crore (3 percent margin) in Q2-2015, and 15.9 percent more than the Rs 2.44 crore (5.7 percent margin) in the immediate trailing quarter.
Ortel President and CEO Rath said, “I am glad to report a strong operational and financial performance for the quarter ended September 30, 2015. Performance during the quarter was driven by healthy addition in revenue generating units (RGUs) which stood at 571,834. We are witnessing encouraging traction to our LCO buyout strategy in emerging markets like Andhra Pradesh and Chhattisgarh, and I am confident that this would sustain going forward. Going forward, we would continue with our strategy of aggressive LCO buyouts across all our markets and diligently integrate the new subscribers into Ortel’s last mile network. Healthy contribution from new RGUs along with ongoing focus on the high margin Broadband business would enable us to deliver strong financial performance in the forthcoming years.”
The company’s EBIDTA (TIO plus Depreciation and Amortisation plus Other Income plus Fixed assets written off minus Total Expenditure) increased 31.3 percent to Rs 17.29 crore (37.8 percent margin) in the current quarter as compared to the Rs 13.17 crore (35.8 percent margin) and increased 8.8 percent as compared to the Rs 15.89 crore (39.1 percent margin) in Q1-2016.
Ortel’s YoY RGUs grew 9.2 percent to 571,834 in Q2-2016 from 523,833 in Q2-2015 and increased 5.5 percent from 542,217 in Q1-2016.
Cable TV RGUs’ increased 9 percent in Q2-2016 to 508,171 from 466,305 in Q2-2015 and grew 5.6 percent from 481,317 in Q1-2016.
Ortel’s YoY primary digital cable RGUs grew 33.2 percent to 117,401 in Q2-2016 from 88,106 and grew QoQ to 4.5 percent from 112,296 in Q1-2016. Analogue cable RGUs’ increased to 330,739 from 322,175 in Q2-2015 and from 307,923 in Q1-2016. The company says that its Cable TV penetration stood at 23.7 percent and penetration in select 10 towns where company offers digital services stands at 71 percent.
Broadband customers grew 8.9 percent to 63,663 in the current quarter from 57,528 in Q2-2015 and grew 4.5 percent from 60,900 in Q1-2016.
The company has reported a slight drop in digital and analogue cable and broadband ARPUs’ in the current quarter. Digital cable ARPU in Q2-2016 was Rs 183 in Q2-2016; Rs 187 in Q2-2015 and Rs 185 in Q1-2016. Analogue cable ARPU in Q2-2016 was Rs 143; in Q2-2015 it was Rs 147 and in Q1-2016, it was Rs 144. Broadband ARPU in Q2-2016 was Rs 183, in Q2-2015, it was Rs 187 and in Q1-2016, it was Rs 185.
Cable Subscription, Connection and Channel carriage fees
The company’s cable subscription fees in Q2-2016 increased 4 percent to Rs 20.6 crore as compared to the Rs 19.8 crore in Q2-2015 and increased 3 percent as compared to the Rs 20 crore in Q1-2016. Connection fees declined to Rs 0.70 crore in the current quarter from Rs 1.1 crore in Q2-2015 and remained flat as compared to the Rs 0.7 crore in Q1-2015.Channel carriage fees in the current quarter increased 44.9 percent to Rs 9.7 crore from Rs 6.7 crore in Q2-2015 and increased 23.8 percent from Rs 7.8 crore in the immediate trailing quarter.
Let us look at the other numbers reported by Ortel
Total Expenditure in Q2-2016 increased 13.3 percent to Rs 38.72 crore as compared to Rs 34.17 crore in Q2-2015 and increased 12.5 percent as compared to the Rs 34.42 crore in the immediate trailing quarter.
The company’s Programming cost in the current quarter increased 7.2 percent to Rs 9.44 crore from Rs 8.81 crore in Q2-2015 and increased 5.9 percent from Rs 8.91 crore in Q1-2016.
Bandwidth cost in Q2-2016 increased 19.3 percent to Rs 1.92 crore from Rs 1.61 crore in Q2-2015 and increased 7.9 percent from Rs 1.78 crore in Q1-2016.
Employee Benefits Expense in the current quarter increased 45.5 percent to Rs 5.64 crore as compared to the Rs 3.88 crore in Q2-2015 and was 15.4 percent more than the Rs 4.89 crore in Q1-2016.
Last quarter, Ortel announced that it had introduced free broadband option for all Ortel Cable TV subscribers in the states of Odisha, West Bengal and Chhattisgarh as a complimentary special value added service in order to target to deeper penetrate into markets by making internet affordable. Ortel says that its offer includes a free data limit every month for a year. The subscriber will be charged a nominal amount after exceeding the free data usage for the month.
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.
