Cable TV
GTPL Hathway believes NTO 2.0 won’t affect price stability
MUMBAI: At the very beginning of 2020, the Telecom Regulatory Authority of India (TRAI) issued fresh amendments to the New Tariff Order (NTO) within less than one year of its implementation. Rattled by the sudden change, the stakeholders in the industry seem to be displeased. But in contrast, GTPL Hathway believes NTO 2.0 is an extension of NTO 1.0 and price stability in the market will continue despite the revision.
“There is NCF for Rs 160 in the new NTO and there is NCF Rs 130 in the earlier NTO plus we could charge additional Rs 20 for every additional 25 channels, so broadly speaking, from a short-term perspective, they are more or less similar kind of thing. So, NCF has a big portion of earning. That is something which is more or less protected while one can debate on what kind of future impact it will have after three years, after five years, but from a short-term perspective that is protected,” GTPL Hathway chairman and non-executive director Rajan Gupta said in an earnings call after q3 result.
“In fact, we have the ability to charge Rs 30 more in case market forces allow us to charge and GTPL being high market share in many territories, they should have the ability to charge higher and we are happy about the consumer. I think consumers will have more choices,” he added.
According to Gupta, DPOs with higher market share should be able to make many more relevant bouquets for consumers, for example, genre-level bouquet while currently bouquets are limited to five-six, which is more based on the ARPU slabs. He said having very micro bouquets is also needed. He stated that can happen with NTO 2.0 on the back of flexibility it offers for DPOs.
Although he mentioned this is not a full assessment on NTO 2.0 but the MSO believes on the basis of the initial assessment that it should see a lot of stability in earnings and cash flow.
“It is too early to speak about how the ARPU will happen in NTO 2.0. In NTO 1.0, if you see this quarter, our ARPU has stood at around Rs 118 and we are expecting that it will go up in q4. We have gone down by Re 1- Rs 1.5 because of the festive offer given by the broadcasters. We are expecting that in q4, it will go up as the festive offer is over. Right now, we have to wait to see what new bouquets, new channel prices come from the broadcasters in NTO 2.0 and only after the assessment, we can comment on NTO 2.0 ARPU,” GTPL Hathway Cable TV business head and chief strategy officer Piyush Pankaj said.
He also added that it is not certain right now if less money will be coming from customers because it depends on what type of bouquets and a-la-carte price the broadcasters will come through. But he said there is price stability in the market during the last one year and they believe price stability would continue.
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.
