Cable TV
Delhi govt meets MSOs on entertainment tax issue
NEW DELHI: The Delhi government met up with the multi-system operators (MSO) of the city in a bid to enhance revenue collections in the form of entertainment tax, which, it feels, is being evaded.
However, the MSOs conveyed to the department of excise, entertainment and luxury taxes that entertainment tax collections can be increased from the cable industry only when newer technology like conditional access is implemented, thereby making another pitch for CAS.
In a bid to up revenue collections, the Delhi government had been cracking the whip on cable operators to pay up their share of tax to the government, which amounts to Rs. 20 per cable home. In this connection, some raids too were conducted on cable ops.
If compared to financial year 2001-02, the entertainment tax collected during 2003-04 (Rs. 69.8 million) has shown an increase from Rs. 50.3 million, but the figures don’t match up with the increase in cable connections too in the city of Delhi. In the year 2002-03, entertainment tax collected amounted to Rs 57.5 million.
Excise officials whom indiantelevision.com spoke to admitted that widespread under-declaration of cable connectivity by cable operators has resulted in low tax collection.
Today, the excise department asked the MSOs ways and means to achieve more collection as it is felt that individual cable ops can be influenced by the MSOs too.
Though there are over 1,000 registered cable ops in Delhi with a subscriber base of approximately 1 million, the figures show that revenue collection hasn’t increased much.
Those who attended today’s meeting included representatives from Hathway, INCablenet and Trinity. Another big MSO, Siti Cable, did not turn up at today’s meet.
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.
