Cable TV
Den Networks calls off merger with Hathway, TV18
KOLKATA: Multi-system operator Den networks has decided not to proceed with the scheme under which TV18 Broadcast, Hathway Cable & Datacom and Den Networks were to merge into Network18 Media & Investments.
“Considering that more than a year has passed from the time the board considered the scheme, the board of the company has decided not to proceed with the arrangement envisaged in the scheme,” it said in a regulatory filing.
In February 2020, Reliance Industries announced a consolidation of its media and distribution businesses spread across multiple entities into Network18. It was planned that the broadcasting business would be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18. The restructuring would create value-chain integration, and render substantial economies of scale, Reliance said at that time.
The shareholders are aware that the scheme was filed with both the Bombay Stock Exchange and National Stock Exchange for their no-objection letter, Den Networks stated in the latest filing.
“The Company had also disclosed in its quarterly financial results for the quarters ended 30 June 2020 and 30 September 2020, that the stock exchanges had returned the scheme stating that the company may apply to the stock exchanges once the Scheme is in compliance with SEBI circulars/ SEBI regulations. This pertained to the compliance by the company and Hathway Cable and Datacom Ltd of the minimum public shareholding requirement,” it said.
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.
