Cable TV
DEN seeks Goldman Sachs investment nod from shareholders
MUMBAI: Leading Indian multisystem cable TV operator (MSO) DEN Networks –promoted by Sameer Manchanda- which got its board’s nod to issue another 1.58 crore shares at a price of Rs 90 per share to existing investor Goldman Sachs is now seeking shareholder approval for the same through an extraordinary general meeting to be held on 14 October 2016.
DEN says it will be issuing the preferential shares to Goldman Sachs affiliate firms Broad Street Investments (Singapore) Pte Ltd and MBD Bridge Street 2016 Investments Pte Ltd. The former will subscribe to 1.30 crore shares taking its holding to 4.18 crore shares. Constituting 21.6 per cent of Den Networks equity. The latter will mop up 28.24 lakh shares and a first time investor in DEN its holding will be at 1.46 per cent.
Once completed the preferential share issue will see the promoters’ shareholding falling from 28.52 per cent to 26.19 per cent; corporate bodies from 11.53 per cent to 10.59 per cent; institutional investors from 22.20 to 20.39 per cent; private corporate bodies from 7.30 per cent to 6.71 per cent and finally the holding of foreign bodies will jump from 22.93 per cent to 29.21.
DEN Networks has said it will use the $21 million funds to pare down its debt from Rs 852 crore in June 2016 and also expand its broadband business through its subsidiary. The company’s debt stood at Rs 895 crore in March 2016 and at Rs 930 crore in March 2015. Between 31 March 2016 and June 2016, DEN Networks raised Rs 89 crore in debt and repaid Rs 132 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.
