Cable TV
Tamil Nadu local cable ops refuse to pay more to Arasu
MUMBAI: Tamil Nadu chief minister J Jayalalithaa has been constantly requesting the centre to approve the DAS licence for her state owned multi system operator (MSO) Arasu Cable. However, due to TRAI regulations, it is stuck with the Ministry of Information and Broadcasting (MIB).
Recently, the MSO sent out a letter to its local cable operators (LCOs) demanding more money from them on the premise that LCOs have been under declaring their subscriber base. At a meeting held earlier this week in Chennai, three LCO association bodies met and informed the cable ops to be wary of this demand.
Speaking to indiantelevision.com, Chennai Metro Cable Operators Association general secretary MR Srinivasan says, “Firstly Arasu doesn’t have a licence and yet it is operating. The MIB needs to decide whether or not it wants to give it a licence. Because of this, we aren’t able to enter into any business agreements with them even though TRAI has said that there should be a valid contract between the MSO and the LCO.”
Arasu has asked its cable operators to have a fixed subscription fee of Rs 70. While keeping the subscription fee intact, Arasu has asked the LCOs that were so far paying Rs 20 per subscriber to it, to increase it to Rs 30 per subscriber. The extra Rs 10, according to Arasu is for maintenance.
Srinivasan says that though the LCOs want to enter into formal agreements, the fact that Arasu is devoid of a DAS licence is keeping them at bay.
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.
