Cable TV
Double taxation: Karnataka MSOs call off strike following government assurance
BANGALORE: Cable signals are back in Karnataka as the state’s Multi System Operators (MSO) have called off their indefinite strike. This follows an assurance from the state government that it would consider the MSOs’ demand on the matter of entertainment tax.
The strike had been called to protest what the MSOs had described as the “arbitrary demand of double taxation by the government”.
MSOs across the state, on 1 October evening, stopped signals protesting the government’s decision to impose a “double taxation.” Now the strike is withdrawn after the government has expressed its willingness to continue with the single point taxation system.
Karnataka finance minister P G R Sindhia told indiantelevision.com that the government might reach an appropriate decision on this regard within a month or two.
“The government is of the opinion that only single point taxation should be there either on the MSOs or on the cable operators. In the absence of any changes in the Act, we are actually entitled to collect this amount. However, we are willing to consider the MSOs’ demand. We have told them that we might come to a decision within a month or two,” said Sindhia.
In response, the MSOs have said they appreciated the government’s promise to remove the “double taxation” and the assurance that no harassment will be initiated by the Commercial Taxation Department (CTD). “All MSOs have agreed to switch on their headends with immediate effect,” said Siti Cable regional director P Kailasam.
According to government estimates, the MSOs and cable operators in Karnataka owe it anywhere between Rs 90 million to Rs 150 million in entertainment tax.
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.
