Cable TV
Final FTA price may take time
NEW DELHI: So near, yet so far.
When the task force on the conditional access system (CAS) recently wrapped up most of its proceedings by recommending Rs 71.33 as the basic tier of service price, the industry thought the official notification was round the corner. Yesterday, the capital was abuzz with rumours that the notification was on its way.
But that did not happen.”An announcement on the final notification of the price of the free to air channels may come by month-end,” a government official said, indicating that the price may not be announced in a hurry as the minister is understood to be studying the file.
What had fuelled optimism on the announcement of the price of the basic tier was the fact that the chairman of the government-piloted task force, Rakesh Mohan, a joint secretary in the I&B minister, was to proceed on a study leave for over a month.
“We were expecting that before Mr. Mohan proceeds on leave, the price would be announced so that the industry can go ahead and look into other aspects of CAS,” a representative of a multi-system operator (MSO) said.
According to the ministry sources, Mohan is already on leave from yesterday and till he returns, additional secretary (broadcasting) in the ministry Vijay Singh would be dealing with such matters.
The government sources also indicated that there is only a slim chance of any change being brought about in the price of Rs 71.33 recommended by the task force.
Meanwhile, allegations and counter elucidation on CAS continue.
The cable fraternity continues to allege that the broadcasters have managed to keep the price of the basic tier low so as to keep the pay channels within the average monthly outgo of a cable subscriber. To such allegations, the broadcasting fraternity have maintained that it was the task force that has decided on the price and the panel had adequate representation from the cable industry too.
Still, according to reports doing the rounds of the capital, some broadcasters have sought an appointment with the chairman of the Standing (parliamentary) Committee on IT and telecom Somnath Chatterjee on 23 April.
It is also learnt that some top executives of a few broadcasting companies operating in India met in Delhi to finalise the agenda for the meeting with Chatterjee. What transpired in the meeting is not clear.
Communist Party of India (Marxist) member Chatterjee is an influential politician and his party had opposed in Rajya Sabha (Upper House) the passage of amendments on CAS in the related act without a proper discussion.
It is also being said that in a recent meeting the Standing Committee had questioned the government’s move on implementation of CAS without ensuring adequate number of set top boxes in the metros or their easy accessibility to the consumers.
What is beyond comprehension is the fact that though the Standing Committee is a parliamentary body and cannot act on its own on any issue unless the parliament refers an issue to it. If the broadcasters are hoping that the CAS issue would, and should, get referred to the Chatterjee panel, then it can only be done if the Indian parliament decides so. For that to happen, the matter has to be brought up in parliament, which itself is a time-consuming affair.
So, the CAS merry-go round continues.
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.
