Cable TV
Liberty eyeing investment in Indian cable company
MUMBAI: As the CAS story firms up, so too does the interest with which big international cable companies view the Indian scenario.
The most active on this front appears to be John Malone’s Liberty Media Corp, which is eyeing an investment into the cable TV business in India. The company has initiated talks with Hinduja-owned IndusInd Media and Communications Ltd (IMCL) but no breakthrough has been reached thus far, sources say.
Late last year, a senior team visited IMCL headquarters in Mumbai but talks have stalled after that. A preliminary agreement on the valuations couldn’t be reached, sources say.
When contacted, Hinduja TMT Ltd MD K Thiagarajan said the cable business of the company was attracting a “lot of interest from strategic and financial investors.” But he refused to comment on whether the company was in talks with Liberty Media. “I can’t comment specifically on any investor,” he said. IMCL, which operates the cable business under Incablenet brand, is a subsidiary company of HTMT.
Sources say HTMT was looking at a valuation of around $900 million for its cable TV business. Interestingly, Zee Telefilms Ltd chairman Subhash Chandra said, in an interview to a business channel, that the value of his cable assets ought to be in the region of $800-900 million.
Liberty, however, is waiting to see how conditional access system (CAS) rolls out. Investors feel digital cable TV will help organise the industry and bring subscribers under the addressable system. Average revenue per users (ARPUs) would also go up.
If Liberty does make an entry into India, then it will be Malone’s second big entry into the Asian market after Japan. According to the latest report by Hong Kong-based Media Partners Asia (MPA), Liberty-controlled J:COM, the most successful broadband cable TV operation in Asia and in Japan, will April 15 launch HDR services (High Definition Recorder capabilities with a High Spec Double Tuner Recorder), a new J:COM digital service available in all J:COM franchises, which pass 7.9 million homes.
Zee Telefilms has already announced its plans to de-merge Siticable, a wholly owned subsidiary, into a separate company called Wire and Wireless (India) Limited (WWIL). This would bring specific focus into the cable business and be attractive to investors.
Queried by Indiantelevision.com earlier as to whether he saw the demerged cable business (Siticable) and the direct consumer services business (Dish TV) as being the most likely to invite international interest for strategic and financial partnerships, Chandra had replied in the affirmative.
HTMT is also planning to de-merge the company’s IT/BPO and media businesses into separate entities. “It couldn’t be done this year because of certain taxation issues. The programme is still alive and we hope to de-merge early next fiscal. A committee of directors are looking into the issue,” said Thiagarajan.
When asked whether HTMT would de-merge after selling its stake in Hutchison Essar Ltd, Thiagarajan said he wouldn’t like to comment on the issue. HTMT, together with its wholly owned subsidiary InNetwork Entertainment Ltd, is holding 91.54 per cent of IndusInd Telecom Network Ltd (ITNL) corresponding to a 4.68 per cent effective stake in Hutch. HTMT plans to exit from the telecom business and sale out its entire stake before Hutchison Essar goes for an initial public offering (IPO).
With Zee de-merging its cable subsidiary, foreign companies may now turn their eyes on WWIL. And with CAS rollout imminent, Liberty, Comcast and Time Warner Cable may seriously look at setting up a footprint in India.
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.
