Cable TV
TV blackout hits Karnataka as MSOs protest ‘double taxation’
BANGALORE: Karnataka’s Multi System Operators (MSOs), switched off cable television signals today from 5 pm in protest against what they term as the “arbitrary demand of double taxation by the government”, resulting in television blackout across the state.
MSOs said they had been served with “final assessment notice” by the Commercial Taxes Department (CTD) to pay entire tax liability since the year 2002 within a week’s time.
“This is practically next to impossible as MSOs have not collected the tax from the cable operators. The cable operators have been paying the department directly,” states an official release made available to the media this evening.
Meanwhile, a state government official indiantelevision.com contacted decried the MSOs’ move to effect a blackout. “Why have they taken this drastic action instead of contacting the finance department? As per my knowledge, the discussions between MSOs and the finance mister are still on,” the official said on condition of anonymity. Sindhia was unavailable for comment.
The media statement, signed by prominent MSOs such as Siti Cable, Hathway, Atria Convergence Technology, ICE Network and the state’s cable TV body the Karnataka Cable TV Chamber of Commerce, says the strike is more so required because the the CTD has been very aggressive in terms of seizing the bank accounts of one of the city’s MSOs which has virtually stopped its entire business operations.
The MSOs’ argument is that the government seems to have ignored the various memos submitted to the state finance minister PGR Sindhia and the CTD with suggestions to avoid double taxation which has jeopardised the business operations of MSOs who have already incurred huge losses due to pay channel commitments.
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.
