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eAccess to attain AOL Japan’s ISP business
MUMBAI: Japan’s eAccess Ltd said on 17 May that it will buy AOL Japan’s Internet service operations for 2.1 billion yen ($18.33 million). This move marks the wholesale Internet provider’s foray into the retail business.
AOL has exited the Japanese market after an eight-year effort, selling its operations for less than a tenth of what has been invested in it.
The unit, which was formerly DoCoMo AOL, used to be a joint venture between the world’s largest media company and NTT DoCoMo Inc, Japan’s largest mobile operator.
A media report said that DoCoMo pulled out of the business last November after it failed to attract customers. The two companies initially intended to provide a new service linking personal computers and cell phones over the Internet.
The sale of the Internet service business to eAccess, which provides broadband ADSL (asymmetric digital subscriber line) services, means AOL Japan will no longer own any operations in Japan.
However, one media report said that eAccess would continue to use the AOL brand in offering services and also retain the existing staff of 200. AOL Japan’s Internet business posted a net profit of about 828 million yen on sales of 9.74 billion yen for the year ended December 2003. EAccess had been wholesaling broadband Internet service to AOL Japan since November 2001.
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.
