Cable TV
TV industry needs to address structural issues to absorb capital
MUMBAI: The media and entertainment industry will be able to receive large doses of capital only after sorting out several issues, investment bankers at a seminar today said.
Size, consolidation and scale are hurdles that prevent serious investments into the filmed entertainment business, said Carlyle Asia Investment Advisors managing director Rajeev Gupta, while speaking at FICCI-Frames 2006 on “Financing options for Indian Entertainment Industry.”
The industry will not be able to absorb capital if the structural issues are not addressed. “Size will be able to deal with volatility. Consolidation pressures are there. Scale also has to be built up, particularly for single theatres. Everybody is so sub scale that the top six listed film entertainment companies earn just Rs 2 billion,” he said.
With such issues dogging the industry, Waygate Capital is investing in ventures like animation and gaming where technology meets entertainment. “The outsourcing model in animation is not right for India which is about 20 years behind other Asian markets. China, Philippines and Korea have developed a maturity. The focus should be on an IP-driven approach,” said Waygate Capital managing director Rajesh Jog.
On the gaming side, however, India can be at the forefront of the outsourcing model. There is a rich domestic market to tap too. “In mobile gaming business, we have the chance of becoming leaders. Online gaming is also likely to see growth,” Jog said.
Waygate is planning to float a film content fund. “We are in talks. We haven’t yet decided on the corpus,” Jog added.
Which sector is receiving private equity financing? “Broadcasting and print is where capital is going as there are several organised players and scalability is possible,” said GW Capital Private Ltd partner Vikram Narula.
The last mile business like film exhibition is seeing capital infusion. Once addressability is in place, there will be investment opportunities in Cable TV. Direct-to-home (DTH) will also attract investments.
“Film and TV content businesses have not seen much private equity. Radio is a new area which can lure in investors,” Narula said, whose company acquired Star’s stake in Radio City.
Poor performance by many listed media companies have pulled down the credibility of investors in the sector. But what will generate interest in film financing? “Tax structures have to come down to bring down prices and create more demand. The sector needs consolidation. Special verticals like film funds have to be floated,” said Ambit Corporate – Finance Pte Ltd managing director Ashok Wadhwa.
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.
