Cable TV
MSO’s net worth should be positive for registration: Govt.
NEW DELHI: An inter-ministerial committee (IMC) of the government, grappling with the issue of differentiating between serious and non-serious players, has recommended that net worth of an MSO must be positive for grant of registration, but shied away from stipulating a minimum monetary ceiling.
The IMC, which met earlier this month, came to the conclusion after feedback from various other ministries, including finance, information and broadcasting and commerce, that in case an existing registered MSO applied for registration for additional areas, the net worth of the company must be positive for those areas too for a green signal from the government.
For an expenditure of about 25 lakh (Rs. 25,00,000) by a company to establish an MSO business, a loan can be availed of by a new applicant through banks, the IMC said.
Justifying its stand on the MSO company’s net worth being positive, IMC said it should be so as the government was providing loans without collaterals to small entrepreneurs for starting a business. “Hence the net worth of the entity applying for MSO registration has to be positive,” the government panel observed.
For the purposes of net worth evaluation, IMC reiterated that immovable/movable assets, generally included in the net worth certificates submitted by the applicants, could continue to be taken into account as per previous practice.
The panel took into consideration, among other issues, whether for registration purpose an entry level threshold net worth be specified and whether an MSO, already registered for certain areas, may be considered as eligible for registration in extended areas if its net worth was presently negative.
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.
