Cable TV
Den demerger from Skynet approved, saving on AGR
MUMBAI: Cable television service-provider MSO Den Networks has stated that it has received shareholders’ nod to demerge its broadband/internet service provider arm Skynet Cable Network. Den Networks, on 11 March 2017, wrote to the National Stock Exchange and the Bombay Stock Exchange Limited about the conclusion of court-convened meeting.
According to a source among Den shareholders, the demerger had been prompted because of adjusted gross revenue (AGR) of eight per cent levied on the broadband business Skynet. Prior to the demerger, this AGR was being levied on Den as a whole whereas it is not applicable to cable TV.
The company had convened a meeting of its shareholders following the orders of the National Company Law Tribunal for this purpose. “The scheme of arrangement has been approved by members of the company,” said Den Network in a regulatory filing signed by company secretary Jatin Mahajan.
In September last year, Den Networks’ board had approved to demerge Skynet Cable Network. It was done to “enhance competitiveness and greater accountability”, “achieve structural and operational efficiency”, and to have “a focused attention in the ISP business,” it had said. Its broadband/ISP arm had a turnover of Rs 40.63 crore in FY 2015-16 and contributed 3.53 per cent shares in its total revenue.
In the 11 March 2017 meeting, it stated thus: “This is to inform you that, pursuant to an Order by the Principal Bench of the National Company Law Tribunal (“NCLT”), New Delhi, a Meeting of the Equity Shareholders/Secured Creditors and Unsecured Creditors of DEN Networks Limited (“DEN”) has been conducted at PHD Chamber of Commerce, No. 4/2, Sin Institutional Area, August Kranti Marg, New Delhi- 110016 on Saturday, 11th March, 2017, for the purpose of considering and, if thought fit, approving with or without modification(s), the arrangement embodied in the Scheme of Arrangement of DEN or Transferor Company and Skynet Cable Network Private Limited (“SYKNET” or “Resulting Company”), through which Internet Service Provider (ISP) Business / Broadband Undertaking of DEN will demerge into SKYNET, a wholly owned subsidiary of DEN.”
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.
