Cable TV
TN advisory: LCO licences may be cancelled if they bully Arasu subs into buying STBs
MUMBAI: A Tamil Nadu state advisory has informed subscribers of Arasu Cable not to pay money to the local cable operators (LCOs) for set-top boxes (STBs) which are actually being provided to all for free.
Arasu Cable, as per a state government statement, is the only state-owned undertaking in the country to offer free STBs combined with internet services and digital cable TV, and a three-year warranty.
Indiantelevision.com had reported that Arasu Cable (TACTV), which had early in September, claimed to have gone digital, was on 25 September asked to “confirm that you have already switched off analogue signals and are carrying only digital encrypted signals on your cable TV network.” In a letter to TACTV, sent by the ministry of information and broadcasting (MIB), the multi-system operator (MSO) was asked to reply within 10 days of issuance of the letter, “failing which your registration is likely to be suspended/revoked.”
The state advisory, meantime, now has also cautioned subscribers of Tamil Nadu Arasu Cable TV Corporation (TACTV) against buying the STB from private dealers, the Times of India reported. If the LCOs were found to be bullying subscribers into paying for STBs, their licence could be cancelled, the state government has warned.
The advisory has urged subscribers to report cases where LCOs had asked them to buy STBs from private dealers through the Arasu cable helpline.
The state government had, a month ago, begun distribution of free STBs among Arasu subscribers. Chief minister Edappadi K Palaniswami had launched the service through the government-owned enterprise after inaugurating MPEG-4 upgraded control room for digital signal transmission.
Arasu’s approximately 70 lakh subscribers would have access to around 180 channels in digital mode. There will be four packages with monthly subscription between Rs 125 and Rs 275 with option of both free and paid channels.
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.
