Cable TV
DEN aims to convert 10% of SD subscribers to HD in a year
MUMBAI: DEN Networks CEO SN Sharma has set a target of converting 10 per cent of its standard definition (SD) subscribers to high definition (HD) within a year.
Sharma, speaking on an analysts call, said that DEN currently has 7.4 million paid digital subscribers, but only about 100,000 of those view HD transmissions.
He further noted that the price of HD set top boxes (STBs) has seen a decline from Rs 4,000-5,000 to Rs 1,500-1,600 and that should help in increasing the HD penetration.
Reports said that DEN has locked in content deals with most broadcasters with the increase being less than 15 per cent. The MSO’s content deals are valid till April 2019 barring that of Star which will come up for renewal in nine months by January. DEN has also resolved its dispute with ZEEL.
“All these deals have been signed up and are firmly in the place. The content cost increase is in the range of less than 15 per cent,” Sharma said.
He also said that all the deals will come up for renewal next year as agreements with Sony and IndiaCast will expire in March 2019. Star and Zee are now signing only one-year deals.
“So as of now our content deals are all frozen till March and April next year. By then all of them become due for renewal,” he noted.
The deals with broadcasters are consolidated and include both standard definition (SD) and HD channels.
Currently, the DEN strategy is to replace older STBs as they run out of warranty, as well as to use new HD STBs as the cable network expands into new areas.
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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.
