Cable TV
Subscription revenue drives up Den’s PAT
MUMBAI: Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.
Consolidated Q3 EBITDA (earnings before interests, taxes, depreciation and amortisation) stood at Rs 81 crore, 54 per cent higher than the Rs 53 crore reported a year ago but lower than the Rs 82 crore reported in the previous quarter. This EBITDA does not include the Rs 14 crore pertaining to entities that are not getting consolidated as per INDAS or else the overall consolidated EBITDA is Rs 95 crore.
The MSO has been able to get higher subscriptions from phase III and IV markets with revenue growth from cable subscription 21 per cent higher than Q3 2017 and 6 per cent higher than Q2 2018. This was aided by 10 per cent higher average revenue per user (ARPU) collection from phase III areas on a quarter-on-quarter basis.
Cable revenue stood at Rs 312 crore versus Rs 272 crore in the year ago quarter, up by 15 per cent. Cable EBITDA was Rs 82 crore, up from Rs 53 crore from Q3 2017, led by subscription growth and rationalisation of costs.
Subscription revenue drove up consolidated PAT to Rs 2 crore from negative Rs 37 crore in Q3 FY2017 and Rs 1 crore in Q2 2018.
The company stated that its broadband business was on track and that it managed to add 10,000 new subscribers during the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion. Cost optimisation initiatives have helped the broadband segment to break even which was negative Rs 1 crore in the previous quarter.
Den Networks CEO SN Sharma said, “Den has been able to improve operational performance consistently every quarter with constant focus on increasing the subscription collections on the ground with a much controlled cost base. It is a time of pride and joy as we announce that as per the Trust Research Advisory research, Den has outshone all its competing brands and has emerged as the ‘Most attractive brand of 2017’ in the cable TV segment.”
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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.
