Cable TV
Kochi Cable TV Operators protest levy of Rs ten per connection as entertainment tax by local corporation
New Delhi: Over 500 cable operators including some multi system operators in Kochi today demanded the scrapping of the entertainment tax on cable connections, insisting that they were providing an essential service to the consumer. Led by the Kochi Cable TV Operators Association, the protesters who marched to the office of the Kochi Municipal Corporation presented a memorandum to both the Mayor and the Deputy Mayor. Describing it as a draconian move, the memorandum on behalf of two associations says that the local cable operators are already burdened with a lot of taxes, and that the consumer will refuse to reimburse the tax
An LCO told indiantelevision.com that they had demanded a complete scrapping of the Rs ten per connection levied upon them. The levy had been imposed by the corporation in its budget last month. The budget proposed to generate Rs. 2 crore by collecting entertainment tax of Rs 10 for each connection from cable TV operators.
A delegation of Cable TV Operators Association met Chief Minister Oommen Chandy and Minister for Urban Affairs Manjalamkuzhi earlier this week with a petition seeking their intervention to persuade the local body to drop the plan.The Kerala Cable TV Federation also submitted a memorandum to the Mayor, Deputy Mayor and Opposition leader with a similar demand.
The Federation State president E. Jayadevan said since almost all households in the Kochi Corporation have a cable TV connection, the move to collect entertainment tax is just a ploy by the corporation to tax every household albeit indirectly through cable TV operators.
“The high cable TV penetration in the state is owing to the reasonable prices charged by small and medium operators. The taxation move will force us to hike the rent, thus distancing subscribers from us leaving the field wide open for direct-to-home operators, who are out of this tax net,” he said.
The Federation said the tax may even force many subscribers to turn to direct-to-home operators and affect the LCOs business. Furthermore, other local bodies would also be tempted to follow suit.
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.
