Cable TV
Multiple challenges weaken Ortel numbers in second quarter
BENGALURU: Hit by multiple challenges, Indian regional multi-system operator (MSO) Ortel Communications Ltd (Ortel) reported lower numbers and posted net loss–the second one this fiscal–for the quarter ended 30 September 2017 (Q2 FY 2017-18). The company expects the business to stabilise one year down the line.
Ortel president and CEO Bibhu Prasad Rath explained the performance in an earnings release, “Our performance during the quarter further weakened due to multiple challenges faced by us, including severe competition in our core market, collections shortfalls, repayment of debt as well as integration issues among others.
“Financial year 2017-18 has been a difficult year for us on all fronts and we are actively working towards restoring the business performance. We have taken many firm steps to turnaround our performance over the last few months and we expect operations to improve going forward. However, we will take one year to fully stabilise our business. In the near term, our main effort is to improve cash collections, which will help us through this difficult phase of the company. We remain committed to our B-to-C ‘last-mile’ business model and believe it will help us through this tough operating environment.”
Declining average revenue per user (ARPUs), higher programming costs due to increase in cable TV subscribers, and higher bandwidth costs despite a lower internet subscriber base have impacted the company’s numbers.
Despite dropping prices for the consumer due to competition with other big internet players, the company has been losing broadband subscribers. Ortel witnessed 17.6 percent year-on-year (y-o-y) decline in the broadband subscriber base between Q2 FY 2017-18 and Q2 FY 2016-17
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.
