Cable TV
Tamil Nadu CM drops minister from cabinet due to cable TV tariff spat
MUMBAI: While Tamil Nadu’s state-run cable operator Arasu Cable revised down its subscription rates recently, the move has led to a political crisis in the state. Chief Minister Edappadi K Palaniswami has dropped former IT minister Dr Manikandan from his cabinet.
After the recent announcement of price revision, Manikandan accused Palaniswami of unilaterally taking the decision of reducing the cable TV monthly subscription as per a report from The Hindu. “I was not consulted. The chief minister announced it. A meeting will happen soon,” Dr Manikandan said. He also alleged that the government declined to fund the government cable network Arasu Cable.
“When we approached the government to bear the cost of STBs, the then finance secretary and present chief secretary K Shanmugam declined to accept. As a result, we repaid ₹400 crore of the total debt (towards providing free STBs) of Rs 619 crore from our (TACTV) revenue. When we were in distress, neither the government nor anyone came to our rescue. If the government comes forward to provide the balance of Rs 219 crore or gives the amount as loan, we can even fix the Arasu Cable tariff at ₹100 a month,” he said.
On July 22, Animal Husbandry minister Udumalai Radhakrishnan was appointed as the chairman of the cable network which did not make Manikandan happy either. He also pointed out the conflict of interest by saying that the latter should first shift two lakh subscribers who are currently under his cable TV network Akshaya Cable to Arasu Cable.
Radhakrishnan recently said that the 11 lakh STBs provided by Arasu Cable which had been switched off, needed to be brought back online as Arasu Cable had now lowered its tariffs.
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.
