Cable TV
Siti Networks says price revision benefits will accrue in second half
MUMBAI: DAS paralysis in phase III markets is having an impact on Siti Networks (Siti Cable) performance. This was revealed by CEO V. D. Wadhwa to CNBC TV18 today.
Speaking to the business news channel, he said that Siti Networks target was to roll out an additional five million boxes in the ongoing year. But this would not be likely met as “Phase-III digitisation is currently on hold and because the matter is subjudice in Delhi High Court, so it has been delayed. So, it all depends on that, but we are hoping that if the matter gets decided by the court in the next one or two months, we should still be able to deliver our original target, otherwise there will be some shortfall.”
Vadhwa informed CNBC TV18 that the company has set its sights on 250,000 broadband subscribers (currently 130,000) by March 2017 and around 200,000 plus subscribers for its 57 HD channel bouquet. The company had hoped to hit 300,000 HD subscribers but has had to scale back its numbers as the HD market “is not moving the way we expected the it to grow. We are carrying the inventory; we are carrying the content but we have pulled back on our HD subscriber numbers.”
He pointed out the benefits of the price revision that company has resorted to will be felt in the second half of the year. “Earlier we were operating with four packages. Now we have reduced the packages and now total three package is there. Basic package and then the royal and magnum package. So, the price increase at the consumer level is in the range of weighted average, roughly Rs 40 increase in the prices and we are targeting that at least half of this should flow back to us. At least Rs 15-20 is what we are targeting that should flow back to the company. So it has just happened in the month of July. In some market it has been revised in the month of July. Balance, it is getting revised in the month of August itself.”
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.
