Cable TV
Reddy silent as cable fraternity pushes for CAS
NEW DELHI: A delegation of cable operators and multi-system operators (MSO) today met the new information and broadcasting minister Jaipal Reddy, exhorting him to implement the conditional access system (CAS).
According to government sources, the minister “listened to all that the delegation had to say,” but did not commit anything, saying that the issue of CAS was being looked into by the broadcast and telecom regulator and the government would only take a view on it once the regulator had finalised its recommendations.
The cable fraternity harped on the known tunes in front of Reddy, including the fact that most of them have taken a financial hit for no fault of their own. A representative of an MSO is reported to have said that it was the (previous) government that had put the pressure on them to invest in
infrastructure related to CAS, which was not implemented.
The cable delegation also requested that tax sops extended on import of set-top boxes for CAS be extended. The deadline for the sops, extended by the previous government, ended in February.
However, a senior government official pointed out to the delegation of MSOs, led by Zee Tele vice-chairman Jawahar Goel, that after February the government has no information of STBs being actually imported.
On his part, Reddy assured the delegation that their grievances would be looked into, but did not give any time frame or assurances.
The Congress party, which leads the present coalition government, had, in vain, opposed CAS in the Parliament before a legislation relating to it was steamrolled by the previous government. An important ally of the present government, the Left parties, too were against implementing CAS, which, they felt, would end up putting more financial burden on consumers rather than reducing it.
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.
