Cable TV
LCOs to get unique TRAI number to ensure fair deals, says advisor Gupta
NEW DELHI: Despite claims of major achievements in all parts of the country in digital addressable system, a meet held recently in Chandigarh presented a dismal picture with many local cable operators complaining that the switching off of analogue had badly affected their business.
In the seminar organised by the Telecom Disputes Settlement Appellate Tribunal, even Tribunal chairman Justice Shiva Kirti Singh said the operators should approach the government for solutions.
Information and broadcasting ministry joint secretary (broadcasting) Manoj Kumar Pingua talked about the achievements of digitisation and referred to the transparency leading to greater tax collections by the centre as well as state governments.
The seminar, on ‘Digitisation: Achievements Issues and the Way Forward’, was attended by the judges of different courts, lawyers, multi-system operators broadcasters and LCOs.
Telecom Regulatory Authority of India principal advisor S K Gupta said there was a plan to issue a unique number to each LCO and keep a track of his Interconnection Agreements to ensure he gets a fair deal.
One LCO from the Chamba in Himachal Pradesh said that he had lost all his business because broadcasters had switched off analogue signals and multisystem operators were not prepared to supply him digital signals.
Another LCO from Punjab said his investments of Rs seven million in a HITS headend and STBs have gone waste as Jain HITS has closed its business. The government has made no policy to compensate cable operators in such conditions. He said that HITS was not working in the present circumstances as broadcasters create hurdles in providing content.
Earlier, Zee HITS had also closed down. Now only NeXT Digital of Hindujas is operating but he said LCOs were losing faith in the technology.
Another LCO said MSOs were not giving signed copy of the Interconnection Agreement to LCOs and exploited them every now and then by raising subscriptions. He said there is no security in the business, and since all regulations are challenged in the courts, even the regulator is unable to help.
While GST had been cleared and Cable and DTH services will attract 18% tax and STBs and other digital equipment will be taxed at 28%, the speakers said they were worried about the negative impact of GST on the business as neither ‘Make in India’ will succeed nor the dream of a ‘Digital India’ will be fulfilled.
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.
