Cable TV
Den Networks reports profitable Q3 2020
BENGALURU: Indian cable network and broadband company Den Networks Ltd (Den) reported consolidated profit after tax (PAT) of Rs 12.28 crore for the quarter ended 31 December 2019 (Q3 2020, quarter or period under review) as compared to a loss of Rs 31.21 crore for the corresponding year ago quarter (Q3 2019, y-o-y) and 28.9 per cent higher than the Rs 9.53 crore for the immediate trailing quarter (Q2 2020, q-o-q). Consolidated EBITDA for the quarter at Rs 58.28 crore was 21.2 per cent higher y-o-y than Rs 48.1 crore and was 20.1 per cent higher q-o-q than Rs 48.51 crore.
Den reported consolidated operating revenue of Rs 318.08 crore, which was 3.1 per cent higher y-o-y, but was 4.3 per cent lower q-o-q than Rs 332.42 crore.
Segment revenue
The company has two segments – Cable Distribution Network (Cable) and Broadband.
Cable revenue increased 3 per cent y-o-y in the quarter under review to Rs 300.46 crore from Rs 291.59 crore, but declined 4.6 per cent q-o-q from Rs 314.92 crore. Cable segment operating result for Q3 2020 was 6.23 crore as compared to a loss of Rs 8.95 crore for Q3 2019 and a loss of Rs 21.14 crore for the immediate trailing quarter.
Major revenue heads for the Cable business are Subscription, Placement, Other operating income and Activation. Cable Subscription revenue in Q3 2020 increased 10 per cent y-o-y to Rs 189 crore from Rs 172 crore and increased 6 per cent q-o-q from Rs 178 crore. Placement revenue increased 8 per cent y-o-y to Rs 87 crore from Rs 81 crore but declined 1 per cent q-o-q to Rs 88 crore. Other operating income in Q3 2020 declined 52 per cent y-o-y to Rs 6 crore from Rs 13 crore and declined 68 per cent q-o-q from Rs 19 crore. Activation revenue declined 29 per cent y-o-y to Rs 18 crore from Rs 25 crore and declined 39 per cent q-o-q from Rs 29 crore.
Broadband revenue increased 4.7 per cent y-o-y in Q3 2020 to Rs 17.62 crore from Rs 16.82 crore and increased 0.7 per cent q-o-q from Rs 17.50 crore. The segment reported a lower operating loss result for Q3 2020 at Rs 5.4 crore and a loss of Rs 6.6 crore for Q3 2019 and a loss of Rs 5.1 crore for Q2 2020.
Let us look at the other results posted by Den for Q3 2020
Consolidated total expenses for Q3 2020 at Rs 321.63 crore was 4.8 per cent lower y-o-y than Rs 337.84 crore and was 11.9 per cent q-o-q lower than Rs 365.27 crore. Consolidated content costs in Q3 2020 declined 4.7 per cent y-o-y to Rs 141.60 crore from Rs 148.65 crore and was 11.2 per cent lower q-o-q than Rs 159.45 crore.
Consolidated placement fees at Rs 1.08 crore during the quarter under review was 89.2 per cent lower y-o-y than Rs 9.99 crore and was 76.2 per cent lower q-o-q than Rs 4.54 crore. Consolidated employee benefits expense for Q3 2020 at Rs 23.72 crore was almost flat (down 0.3 per cent y-o-y and down 0.2 per cent q-o-q) than Rs 23.8 crore in Q3 2019 and Rs 23.8 crore in Q2 2020.
Consolidated finance costs during the quarter decreased 9.7 per cent y-o-y to Rs 4.38 crore from Rs 13.88 crore and declined 30.6 per cent q-o-q from Rs 6.31 crore. Consolidated other expenses in Q3 2020 increased 19.9 per cent y-o-y to Rs 93.39 crore from Rs 77.87 crore but declined 2.9 per cent q-o-q from Rs 96.15 crore.
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.
