Cable TV
Cable TV distribution to get fillip from demonetisation
MUMBAI: The cable television distribution business, a section of which has been infamous for dealings in unaccounted money, will have to upgrade addressability in the backdrop of the decision to demonetise higher value currency. It is estimated that the analog subscriber base will come down by 37% this year as they switch over to digital cable under DAS III and IV, according to sector estimates.
According to a FICCI-KPMG report, there are approximately 65 million analog cable television subscribers in India, around 37 million digital cable television subscribers, 44 million pay DTH (direct-to-home) subscribers and some 15 million free DTH (FTA) subscribers. The benefit of dealing in cash prompts most operators to under-report subscriber numbers and eventually revenue. However, this may substantially reduce with the new government move, experts said.
KPMG partner – media & entertainment Jehil Thakkar said that, with digitisation (under DAS III and IV), TRAI has proposed new pricing for TV channels. The purpose was to make it affordable. With demonetisation, the cable operators may have to clean up their operations so that there was transparency in dealings with broadcasters.
DAS could act as a catalyst for cable operators to reduce under-reporting. Demonetisation, experts said, could become a trigger for the switchover. Under-reporting of subscription revenue by the cable operator per individual or household had been estimated to be 15-20%. DTH, however, has overcome this issue by using a pricing strategy based on the number of channels seen by a consumer.
Meanwhile, the release of a number of Telugu films including Intlo Deyyam – Nakem Bhayam and Ram Charan Teja’s Dhruva have been postponed. Box office earnings have gone substantially down for Tamil, Telugu, and Malayalam films owing to demonetisation. Producers are being forced to defer releases due to low turnouts.
Several film shoots have been suspended, and many theatres in Kerala are planning to shut shop owing to non-availability of low denomination notes. Work on national award-winning director Sidharth Siva’s new movie Sakavu too has been deferred.
Income Tax officials meanwhile raided the house of the campaign manager of Puducherry chief minister V Narayanasamy and ex-MLA A John Kumar, seizing Rs. 14 lakh in cash. The ex-MLA of Nellithope, whose business is cable TV distribution, real estate etc, is also the manager of Narayanasamy’s campaign.
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.
