Cable TV
Sun set to buy out RPG Netcom
CHENNAI: Sun Network is all set to acquire RPG Netcom, a move which will mark the company’s foray into cable TV business in the non South market.
SCV, the cable TV arm of Sun Network, is in the last lap of procedures to totally buy out the leading Kolkata-based multi system operator (MSO). The deal is being worked out by Ernst & Young.
Speaking to Indiantelevision.com, Sun Network’s chairman and managing director Kalanithi Maran says the deal is almost through. “We are on the verge of closing the deal and expect to make an announcement within a month,” he adds.
Maran was not willing to disclose the valuation of the deal that was being worked out. The buzz in the market, though, is that SCV would be paying between Rs 350-450 million.
The acquisition of RPG’s cable network is expected to precede the launch of Sun’s Bangla entertainment channel in September. Earlier, Sun had planned to launch Surjo on 14 April. Instead, Sun will be launching Aditya, a Telugu channel on 14 April.
RPG has a 40 per cent share of the local market but, like other MSOs, has very few direct points. The ailing MSO had long been in hunt of an equity partner but the negotiations with Star India fell through a few years back.
What brought Sun and RPG into the negotiating table? “We saw an opportunity in the market while RPG may have its own reasons to exit,” says Maran.
So what is the plan ahead? “We haven’t bought the company yet. If we do, we will bring in more fibre optics into the network. The future is in digital services. Worldwide, cable has gone digital,” says Maran.
Is Sun also talking to acquire stake in Cablecom and Manthan, the two other big cable operators in Kolkata? “I am not going to comment on that. As a policy, we talk only when anything definite has been arrived at,” says Maran.
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.
