Cable TV
Siti Cable convention to start in Delhi
NEW DELHI: Zee Telefilms has always loved to set the cat amongst the pigeons. Over two years back, when conditional access was a relatively unknown word, Zee Telefilms CMD Subhash Chandra had supported it, much to the chagrin of the likes of Star and Sony.
At a time when the annual hike in subscription rates of TV channels (under the watchful eyes of the sector regulator) draws near, Siti Cable is attempting to educate its franchisee cable ops that new channels would mean a substantial hike for MSOs, which would have to be passed down to the operators.
Citing the examples of Zoom, Star One, Hungama, MTV, Nick, etc., Siti Cable in an invitation to its franchisees or joint venture partners has said that the total financial impact of these new pay channels, launched in the last few months, is about Rs 70 (approximately $ 1.6) per month.
“Availing these channels entails the realisation of extra amount from subscribers to the extent of their prices,” Siti cable has conveyed to its franchisees, urging them to come together to discuss various such issues. The first of this proposed series is being flagged off in Delhi today.
The invitation, signed by a senior Siti executive, Tapas Roy, also points to the fact that in the “absence of realisation of these additional amounts from the ground,” the industry, already reeling under severe operating losses, would further bleed.
What is slightly worrisome is that Siti and other MSOs have stated in private that though new TV channels were being priced individually, broadcasters have been allegedly insisting the cable industry enter into subscription agreements as a part of their existing bouquet itself, based on prevailing connectivity irrespective of the fact whether these new channels were being subscribed by customers or not.
Other issues that are slated to be discussed in today’s cable ops meet, organised by Siti Cable, include that relating to the service tax @ 10.02 per cent and the draft interconnection regulation issued by the Telecom Regulatory Authority of India (Trai).
According to Siti Cable, cable ops need to pay service tax to the MSO (in this case Siti Cable) on the bills raised on them by Siti. However, the cable ops can claim credit of the service tax so paid to the MSO and, in turn, pay the government the balance tax after setting off the amount paid to the MSO.
In other words, cable ops need to pay only the net service tax to the government and as such it is not double taxation as is being misunderstood in various circles, Siti has said.
But it seems this education campaign’s success would depend on the fact how the Delhi meet shapes up.
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.
