Cable TV
Arasu ‘monopolistic practices’ decried by LCOs, TN body seeks GST exemption
MUMBAI: A Tamil Nadu federation of unions to which hundreds of cable operators owe allegiance has alleged that the Arasu MSO has been following ‘monopolistic practices’ and acting against the welfare of its members.
It also made a series of demands from the state and central governments including forming a welfare board for cable TV operators, strict monitoring of Arasu operations by the union ministry and exemption of cable TV operations from Goods and Services Tax (GST).
The Tamil Nadu Arasu Cable TV Corporation Limited (TACTV) had set the subscription fee as Rs 70, which was below the fee recommended by the Telecom Regulatory Authority of India (TRAI). Of this, cable operators were expected to pay 50 per cent to Arasu, the federation alleged.
Hundreds of cable TV operators from across Tamil Nadu on Monday observed a fast condemning TACTV for acting against the welfare of cable TV operators.
The Federation of Cable TV Associations of Tamil Nadu (FCTATN) has alleged that Arasu had claimed that it owned the complete cable the infrastructure and subscribers although TACTV was formed with almost zero investment since the necessary infrastructure and last mile connectivity were provided by the LCOs (local cable TV operators). “This is unfair,” FCTATN chief coordinator D.G.V.P. Sekar said.
Alleging that TACTV was formed with almost zero investment since all the necessary infrastructure and last mile connectivity were provided by the local cable TV operators, the participants said that it was unfair on the part of TACTV to claim that all the infrastructure and subscribers as its own.
The operators also accused TACTV of taking away from them the responsibility of collecting subscription fee, and asking the subscribers to directly pay it online. “Now, operators will have to wait for TACTV to credit the share to us,” Sekar said.
FCTATN members also alleged that TACTV’s taluka-level and district-level control room operators were often appointed on the recommendation of ruling political party functionaries, and acted in an ‘high-handed behaviour’ towards the cable TV operators.
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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.
