Cable TV
Jaipur LCOs to form cooperative, set up own headend
MUMBAI: Local cable operators (LCOs) feel threatened with compulsory digitisation of cable TV services. LCOs own the end subscribers, but do not have the bargaining power with broadcasters and also access to funding.
This has led to an increasing trend towards LCO consolidation, if not through the mergers and acquisitions route then through formation of associations and unions, especially in Gujarat, Maharashtra, Kerala and Karnataka, states the FICCI-KPMG media and entertainment industry report 2014.
Now, nearly 220 of the about 250 LCOs in Jaipur, Rajasthan have decided to come together to protect their business. The LCOs are looking at forming a cooperative and setting up their own headend.
The move comes as many LCOs are unhappy with the monopoly of the multi-system operators with the progressing digitisation.
“It is at a nascent stage, but we are tired of the MSO monopoly here in Jaipur and hence looking at setting up a cooperative and converting into an independent MSO,” says a cable operator from Jaipur who is currently taking feeds from Hathway Cable & Datacom.
The cooperative has been set up under the banner Jaipur Cable Operators Welfare Society. The LCOs are meeting regularly to finalise details.
While the initial investments will be made by the LCOs, they will also approach banks for loans to meet the investment demands. “We are unhappy with the way things are moving in the state. Neither the Telecom Regulatory Authority of India nor the Ministry of Information and Broadcasting is ready to listen to us. And so we have decided to take this move,” says the LCO.
As of now, four lakh set top boxes have been seeded in the state. “The Jaipur cable operators are in talks with us as they are looking at setting up a cooperative. We will be meeting in April in Mumbai to discuss further,” informs Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.
It is not only in Jaipur that the LCOs are coming together to form cooperatives. While earlier such cooperatives were set up in Chennai, Delhi, Bengaluru and Kolkata, now LCOs are coming together in Mumbai, Jaipur, Jodhpur and parts of Madhya Pradesh to set up their own headends.
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.
