Cable TV
Competition regulator okays Goldman Sachs stake purchase in Den Networks
MUMBAI: Investment banking major Goldman Sachs has received the Competition Commission’s approval to increase its stake in Den Networks to over 24 per cent by acquiring additional shares through preferential allotment route.
indiantelevision had reported that MSO Den Networks existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in the cable TV service provider up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore. The divestment is expected to trim promoter stake in the company to 37 per cent.
Media observers say that the Indian cable TV ecosystem – including the government, the regulator TRAI, broadcasters, MSOs and cable TV operators – has stumbled in the digitization process which was mandated by the ministry of information and broadcasting four years back. They have also been saying that investor sentiment towards the sector is pretty weak. Shares of most leading Indian cable TV companies have been depressed, and have been parked at lows. However, DEN Networks has been taking steps to correct the perception. It has brought back its CEO SN Sharma who has since been working on raising revenues and profitability.
The transaction has now been cleared by the Competition Commission of India (CCI), as per the regulator’s website.
The additional acquisition would be done by the holding companies of Goldman Sachs — Broad Street Investments (Singapore) Pte (BSIPL) and MBD Bridge Street 2016 Investments (Singapore) Pte (MBD), according to filing submitted to CCI. BSIPL and MBD are investment holding companies and are not engaged in business of manufacturing of products or the provision of service, PTI reported. Den Networks is into distribution of television channels through analog as well as digital modes.
The Goldman investment came as a shot in the arm for Den Networks as well as the Indian cable TV sector which is grappling with reinventing its business model.
Investors had greeted the Goldman Sachs announcement with delight. Den Networks had made an investor presentation in which it stated that its digital rollout is progressing well. Of the 13 million subscribers it has had, almost 9.8 million of them upgraded to digital in Q1 2017. Five million of these are in DAS Phase I & II areas with the remainder being in Phase III and phase IV.
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.
