Cable TV
Den reports lower numbers for third quarter
BENGALURU: Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 6 per cent drop in consolidated operating revenue numbers for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y, Q3 2018).
Den Network’s operating profit (EBITDA) declined 39 per cent y-o-y during the period under review to Rs 48.10 crore (15.6 percent of operating revenue) from Rs 78.83 crore (24 per cent of operating revenue) in Q3 2018.
Den reported a net loss of Rs 31.21 crore in Q3 2019 as compared to a profit after tax of Rs 1.73 crore in Q3 2018.The company reported total comprehensive loss (TCL) of Rs 31.06 crore as compared to total comprehensive income of Rs 1.31 crore in Q3 2018.
Segment numbers
Den has two segments – cable distribution networks (Cable) and broadband. Both segments reported lower y-o-y revenues and operating loss for the quarter under review.
Cable segment revenue reduced 6.1 per cent y-o-y in Q3 2019 to Rs 291.59 crore from Rs 310.50 crore in Q3 2018. Den reported that the segment had an operating loss of Rs 8.95 crore as compared to an operating profit of Rs 25.20 crore in Q3 2018.
Den Networks reported 5.1 per cent y-o-y decline in operating revenue for its broadband segment in Q3 2019 at Rs 16.82 crore as compared to Rs 17.72 crore in Q2 2018. The segment’s operating loss reduced to Rs 6.60 crore in Q3 2019 from an operating loss of Rs 7.29 crore.
Let us look at the numbers reported by Den Networks for Q1 2019
Den Networks consolidated revenue from operations in Q3 2019 was Rs 308.41 crore, 6 per cent lower than the Rs 328.22 crore in Q3 2018. Consolidated total revenue including consolidated other income declined 6.4 per cent y-o-y in Q3 2019 to Rs 313.32 crore from Rs 334.92 crore in Q3 2018.
Consolidated total expenditure for the quarter under review increased 3.9 per cent y-o-y in Q3 2019 to Rs 337.84 crore (109.5 percent of operating revenue) from Rs 325.20 crore (99.1 per cent of operating revenue) in the corresponding quarter of the previous year.
Consolidated content cost increased 10.5 per cent y-o-y in Q3 2019 to Rs 148.65 crore (48.2 per cent of operating revenue) as compared to Rs 134.56 crore (41 per cent of operating revenue) in Q3 2018. Consolidated placement fees reduced 9.3 per cent y-o-y in Q3 2019 to Rs 9.99 crore (3.2 per cent of operating revenue) from Rs 12.48 crore (3.4 per cent of operating revenue) in Q3 2018.
Den Networks consolidated employee benefits expense during the period under review declined 7.5 per cent y-o-y to Rs 23.80 crore (7.7 per cent of operating revenue) from Rs 25.73 crore (7.8 per cent of operating revenue) in Q3 2018. Consolidated other expenses in Q3 2019 increased 1.6 per cent y-o-y to Rs 77.87 crore (25.2 per cent of operating revenue) in Q3 2019 from Rs 76.62 crore (23.3 per cent of operating revenue) in the corresponding quarter of the previous year.
Company speak
Den CEO SN Sharma said, “Cable subscription ARPU is consistent with respect to the previous quarter which stood at Rs 96 per box (including tax).
"TRAI tariff order implementation, a potential gamechanger in the cable industry, is underway wherein we have taken host of initiatives and strengthened our internal processes including IT systems. In order to migrate to the new tariff order, consumer has various options to exercise his choice of channels through our consumer / LCO mobile applications and web portal.
"Extensive LCO/distributor awareness programme are under progress wherein the partners are explained in clear terms the benefits they would get in the overall value chain. Prepaid system for cable subscription partners, the most preferred billingoption under the new tariff order, has been successfully rolled out during the quarter in select markets.”
Strategic investments in Den by Reliance Industries
On 17 October 2018, the Mukesh Ambani led Reliance Industries Ltd reported to the bourses that it has decided to make strategic investments thought a primary investment of Rs 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 percent stake in Den. Reliance also said that it would make a primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 per cent stake in Hathway Cable and Datacom Ltd (Hathway) of the Rajan Raheja group.
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.
