Cable TV
Star gets crucial cable presence in the east with stake in RPG Netcom
Getting the ground in order goes more than a long way in pushing through new subscription packages as well as in ramping up connectivity numbers. Star India has just added another significant piece to its armory on that score with its acquisition of a 26 per cent equity stake in RPG Netcom Ltd, the Goenka Group’s multisystem operator that controls over 75 per cent of Kolkata’s cable-connected households.
An official announcement regarding the alliance is expected in the next few days.
An indication that something was cooking between Star India and RPG Netcom was evidenced at the beginning of the year itself when the Rupert Murdoch network announced its new monthly subscription package of Rs 40.50. There was nary a whimper from the MSO, a far cry from 2001 beginning which saw Star off the air for 62 days when it announced a Rs 30 subscription rate.
Business daily The Financial Express reported today that Star has already signed an agreement with RPG Netcom whereby it will pay around Rs 520 million for the 26 per cent share in the MSO.
With the addition of RPG Netcom, Star now has three major MSOs under its control. This includes Hathway Cable & Datacom, in which Star officially has a 26 per cent stake, and Win Cable, an almost wholly owned subsidiary of Hathway.
Hathway has a significant presence in Bangalore and Mumbai while Win is very strong in Delhi. RPG’s coming under the Star wing gives the network strong leverage in all the main metros except Chennai, where DMK scion Kalanithi Maran’s Sumangali Cable Vision (cable arm of the Sun Network) holds complete control.
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.
