Cable TV
GTPL: Investing in Q3 FY 2025 for growth
MUMBAI: It has been a challenging year for the cable TV industry, with increasing pressure on their broadband operations from wireless operators like Jio, Airtel, and Vi. Cord-cutting continues to grow, alongside the rise of cord-nevers. This trend is likely to be reflected in the financial results of listed MSOs and DTH operators.
Some of these challenges are evident in the results of one of India’s top MSOs, GTPL Hathway, although the company is investing for growth.
The Anirudhsinh Jadeja-led group reported a 7.64 per cent growth in revenue for the third quarter ended 31 December 2024, reaching Rs 565.16 crore, compared to Rs 521.69 crore in the corresponding period of the previous year. The company spent Rs 14.93 crore on the purchase of project material (nil in Q3 ended 31 December 2023). Operating expenses rose significantly to Rs 441.70 crore (Rs 364.22 crore), while finance costs increased to Rs 6.6 crore (Rs 4.4 crore). These higher costs impacted the profit before exceptional items and tax (PBEIT), which declined to Rs 14.24 crore (Rs 25.91 crore).
Despite a lower tax outgo of Rs 3.58 crore (Rs 13.83 crore), net profit fell to Rs 10.66 crore (Rs 19.13 crore). Total comprehensive income also decreased to Rs 10.69 crore (Rs 19.21 crore).
The company declared in its investor presentation that its active cable TV subscribers and paying subscribers were at 9.6 million and 8.9 million in Q3 FY25 as against 9.4 million and 8.7 million in Q3FY24 respectively. Its subscription income from CATV fell six per cent in Q3FY25 to Rs 211.2 crore (Rs 225.1 crore in Q3FY24), while its placement income rose 21 per cent to Rs 308 crore (Rs 254.2 crore in Q3FY24).
Its content costs climbed 14 per cent to Rs 382.4 crore in Q3FY25 from Rs 335.1 crore. GTPL Hathway’s EBITDA fell 14 per cent to Rs 65.4 crore in Q3FY25 from Rs Rs 75.7 crore in Q3FY24.
On the broadband front, its active subscriber base at 1,042,000 in Q3 FY25 showed an increase of 37,000 over the previous year’s corresponding quarters. Average revenue per user too rose by Rs 5 to Rs 465 in the same period. Its home passes were higher by 350,000 touching 5.95 million by 31 December 2024.
On a nine-month basis ending 31 December 2024, GTPL Hathway reported total income of Rs 1653.37 crore, up from Rs 1545.56 crore in the same period the previous year. However, expenditure on project material rose to Rs 21.70 crore (Rs 0 in the previous year’s comparative period). Higher operating expenses at Rs 1196.57 crore (Rs 1087.1 crore) and increased finance costs (Rs 15.61 crore vs Rs 11.55 crore) led to a lower PBEIT of Rs 53.48 crore (Rs 90.07 crore). Net profit after tax fell to Rs 39.65 crore, compared to Rs 66.29 crore.
During the current quarter, GTPL sold its entire 61 per cent equity stake (12,200 shares) in its subsidiary GTPL Bansidhar Telelink for Rs 0.12 million. Additionally, it entered into a share transfer agreement to acquire the remaining 49 per cent stake (1,00,000 equity shares of Rs 10 each) in its subsidiary GTPL Vision Services from existing shareholders for Rs 1131 per share, totaling Rs 113.10 million.
The company clarified that revenue from operations includes projects executed by the group, amounting to Rs 7.6 crore for the quarter and nine months ended 31 December 2024, compared to Rs 41.64 crore for the same periods in the previous year and the year ended 31 March 2024.
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.
