Cable TV
MSO body submits recos to GST committee; wants ET subsumed under GST
MUMBAI: The growing taxes have been of great concern to all. The recent move of the Delhi government to hike entertainment tax to Rs 40 just added to the growing woes. To address this, the newly formed multi system operator (MSO) body All India Digital Cable Federation (AIDCF) has submitted its recommendation to the select Goods and Services Tax (GST) committee.
Through the recommendation, the association has suggested that entertainment tax (ET) be subsumed under GST.
It can be noted that the entertainment tax, which is being submitted by MSOs, varies from state to state. So while Delhi pays Rs 40, Maharashtra pays a sum of Rs 45. What’s more, in some states like West Bengal and Kerala, even the municipality collects entertainment tax thus adding to the burden.
“It is for this reason that we have asked the GST committee to subsume ET into GST for all the states and municipalities in India. This will also mean a uniform taxation policy where no one will have to pay separately to state governments or to municipalities,” a source close to the development tells Indiantelevision.com.
Meanwhile, the source also suggests that a similar recommendation has been sent by the DTH Operators Association, who currently have to pay close to 40 per cent of their income in taxes. However, at the time of filing this report, DTH Operators Association president and Videocon d2h CEO Anil Khera was unavailable for comment despite repeated attempts.
It may be recalled that in April this year, Khera had welcomed GST wholeheartedly and had said that it would only help the DTH sector to prosper. “DTH is the biggest victim of multiple taxation policy and GST will simplify that. The industry needs a uniform taxation system and the sooner it comes the better it is,” Khera had then said.
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.
