Cable TV
Some clauses flawed: NCTA
NEW DELHI: No sooner has cable and broadcast regulator come out with its recommendations on the sector, protests are being made. National Cable & Telecommunications Association (NCTA) has said that certain clauses regarding the must provide provision are flawed.
In a letter to the chairman of the Telecom Regulatory Authority of India, NCTA has said that Promotion of Competition in Distribution of TV channels (clause-6.3) may actually turn tout to be `anti-competitive.
Quoting from the Trai recommendations that broadcasters will not be held to be in violation of the must-provide condition if it is ensured that the signals are provided through a particular designated agent/distributor or any other intermediary and not directly, NCTA has contended that a scenario could not be ruled out that Star or Zee Telefilms, for example, provide exclusive signals to their affiliates (like Hathway and Siti Cable) who could continue the monopolistic trends.
Though this line of argument can be neutralized, a Trai source pointed out that, however, NCTA’s viewpoint would be examined.
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.
