Cable TV
Restructuring brings Hathway to black in first quarter
BENGALURU: Restructuring at Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) has brought for it a positive bottomline. The pared company reported a profit of Rs 27.16 million (including an exceptional item –gain from the sale of shares of Rs 17.13 million) or 21 per cent of total income for the quarter ended 30 June 2017 (Q1-18, current quarter). Even if one were to neglect the exceptional income during the quarter, profit of Rs 101.3 million works out to about eight per cent of total income. The numbers above basically represent the numbers that Hathway has reported from its broadband business.
The Hathway group structure can be divided into three – Broadband business, CATV business which includes joint ventures, associates and subsidiaries and GTPL Hathway in which it has 37 per cent shareholding. The broadband business is managed by the parent company while the CATV business is managed by wholly owned subsidiary Hathway Digital Private Limited (HDPL).
Hathway has reported higher y-o-y average revenue per broadband user (ARPU) at Rs 730 as compared to Rs 724 in Q1-17, but lower than the Rs 740 reported for the immediate trailing quarter (Q4-17). The company says that it has added 30,000 broadband subscribers in Q1-17, bringing its broadband subscriber base to 0.66 million.
For its CATV business, the company says that it has seeded about 0.25 million set top boxes (STB) in Q1-18, bringing its digital CATV subscriber base to 7.2 million, or approximately 96 per cent of its overall subscriber base. It says that it has seeded 1.6 million, 2.3 million and 3.3 million in DAS phases I, II and III & IV respectively. ARPUs’ in Q1-18 were Rs 105, Rs 95 and Rs 55 for DAS phases I, II and III, respectively.
Broadband business
Hathway has reported standalone total income of Rs 1,295.7 million for Q1-18 (from its broadband business). Total expenditure in Q1-18 was Rs 1,195.4 million or 92.3 per cent of total income. Employee benefits expense for the quarter was Rs 89 million (6.9 per cent of total income), other operating expenses was Rs 307.9 million (23.8 per cent of total income) and other expenses was Rs 401.7 million (31 per cent of total income). EBIDTA for broadband business was Rs 497.1 million (38.4 per cent of total income).
CATV business excluding GTPL Hathway business
For HDPL, Hathway has mentioned total income of Rs 2,365 million for Q1-18 in investor presentation. The breakup of total income is Rs 1,325 million from cable TV subscription, Rs 702 million from placement, Rs 242 million from activation and other operating income of Rs 96 million. Total expenditure in Q1-18 has been reported at Rs 2,093 million (88.5 per cent of DHPL total revenue). Major expense heads include pay channel cost (57.2 percent of HDPL total revenue), employee cost Rs 214 million (9 per cent of HDPL total revenue), other expense Rs 527 million (22.3 per cent of HDPL total revenue). Finance costs for Q1-18 for HDPL was Rs 162 million (6.8 per cent of HDPL total revenue). The company has reported HDPL EBIDTA of Rs 272 million (11.5 per cent of HDPL total revenue).
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.
