Cable TV
Zeel provisions for outstanding Siti Networks dues
KOLKATA: The outstandings of Siti Networks and Dish TV has been one of the major concerns for Zee Entertainment Enterprises Limited (Zeel). While the DTH platform Dish TV is making payments on the line of the revised plan for recovering dues, Siti Networks has failed to play old subscription overdues.
During the Q2 earnings call of ZeeL, MD & CEO Punit Goenka said that the company has collected the receivables related to revenues in the first half of FY 21 from the cable network. But it has failed to pay subscription overdue in accordance with payment plan agreed earlier due to various challenges including Covid2019, the pressure to prioritise lender’s payments, Goenka added.
As Siti Networks has made payment for all content delivered during April-September, this cash and carry model will be continued going forward. But as it has failed to pay old outstandings, ZeeL has taken a provision of Rs 81.2 crore towards subscription receivable which was overdue. Goenka emphasised that the company has not written off any debt and it would make all endeavours to recover the dues.
“Further on account of accelerated payment grievance by some of the lenders due to delay in restructuring by Siti Networks and their failure to negotiate extended repayment plans, the company has provided for extra liability of Rs 97 crore as of 30 September 2020. The provisions have been taken as a provisional measure and company will take necessary efforts s to recover this due,” Goenka commented.
On the other hand, Dish TV has been able to cope up with the new payment plan as its financial position has improved. The DTH operator is paying its monthly billing along with clearing a part of its arrears. Currently, Dish TV’s outstanding stands at Rs 4. 98 bn compared to Rs 5.84 bn at end of FY 20. Moreover, Goenka stated the company expects that Dish TV will accelerate payments leading to reduced arrears.
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.
