Cable TV
Switch-off scenario averted in Mumbai as Star, INCableNet agree to continue talking
After a day of hard negotiations, Star India and Hinduja Group MSO INCableNet this evening appeared to have bought themselves some time to arrive at an agreement on the terms of a new contract after the current one expired on 30 June.
Executive V-P distribution Tony D’Silva said Star had given INCableNet a proposal and the MSO was supposed to revert back on it within 48 hours. D’Silva was however, quick to point out the latest round of talks were not confrontationist in nature and that he felt reasonably confident that it would not come to a scenario of Star switching off the INCableNet feed. D’Silva said the proposal Star had put forward was valid for a limited one-month period during which a final agreement would have to be arrived at.
Rajiv Vyas, newly promoted COO of IndusInd Media & Communications Ltd (IMC), of which INCableNet is the operations arm, spoke in a similar vein while stating the two sides had worked out a month-long bridge period in which to resolve all outstanding issues and come to an agreement which would be beneficial to both sides. Vyas added that Star had sent them a proposal in which they’d sought a response in 48 hours. It was not an ultimatum, Vyas said.
The scene was a sea change from the one existing at the beginning of the day where it had almost seemed as a certainty that there would be a confrontation between the two sides. Big ads in yesterday’s edition of The Sunday Times of India and Sunday Mid-Day detailing INCableNet’s litany of woes vis–vis broadcasters, but with particular reference to Star, appeared to point to the fact that consumers could expect a switch-off any time in the next few days. The advertisement said Star had issued a notice to INCableNet that unless the MSO increased monthly payments, it would not be able to provide signals w.e.f. tomorrow, 9 July.
The ad also made a strong plea for the introduction of conditional access systems (CAS) at the earliest as the only way to resolve this matter in the long term.
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.
