Cable TV
Conditional access report redraft ready?
If this piece of unconfirmed news emanating from Delhi proves true, the industry’s wait for legislation on conditional access systems (CAS) may well be over sooner rather than later.
Reports indicate that the final draft of the CAS report, which had been sent back for reworking following strong protests from sections of the industry vis-a-vis its implications, was completed last night. The original draft was prepared by a the task force headed by Rakesh Mohan, joint secretary, I&B ministry. Reports say a two-man team who worked on the final draft looked at three key areas:
i) The programme of introduction of CAS.
ii) What changes in law are required to implement CAS?
iii) What sort of standards to apply and how to calibrate them into the Indian Bureau of Standards.
If there has been a decision to move forward on CAS, it will set in motion the beginning of the switchover from the catch-all bouquet of several channels as is the system now to one that makes it mandatory for consumers to pay only for the television channels they watch.
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.
