Cable TV

Lower activation fees, new businesses make Den Networks post a subdued result, low PAT for Q1-2015

BENGALURU: Den Networks Ltd (Den Networks) reported almost flat q-o-q result in Q1-2015. The company reported a slight drop in consolidated Total Income from Operations (TIO) in the current quarter at Rs 298.81 crore, down 1 per cent as compared to the Rs 301.86 crore in Q4-2014 and 11.2 per cent higher as compared to the Rs 268.70 crore in Q1-2014. Activation revenue dropped by Rs.47.5 crore in Q1-2015 as compared to the corresponding year ago quarter.

 

The company says that Operational Revenue (excluding Activation Revenue) grew by 35.4 per cent y-o-y; subscription revenues grew by Rs 71.25 crores (82.7 per cent) y-o-y. The breakup of revenue from operations for Q1-2015 is: Subscription Rs 146 crore; placement revenue Rs 116 crore; digital activation revenue Rs 20 crore and other operating revenue of Rs 3 crore. Another breakup of revenue is revenue from cable Rs 284.6 crore, broadband revenue Rs 1 crore and soccer revenue-nil.

 

Den Networks EBIDTA before other income in Q1-2015 fell 16.6 per cent to Rs 57.16 crore from Rs 68.57 crore in Q4-2014 and was 29.4 per cent lower than the Rs 80.94 crore in Q1-2014. The decline of Rs 23.78 crore (29.4 per cent) y-o-y comprises largely of losses on account of launch of broadband and soccer (Rs 12 crore) and lower activation revenue in cable business by Rs 42.75 crores.

 

Notes:  100,00,000 = 100 lakhs = 10 million = 1 crore

 

The company’s PAT in Q1-2015 at Rs 1.12 crore (0.4 per cent of TIO) which was about one ninth of the Rs 10.05 crore (3.3 per cent of TIO) in the immediate trailing quarter and also about one ninth of the Rs 10.15 crore (3.8 per cent of TIO) in Q1-2014.

 

Let us look at the other numbers reported by Den Networks for Q1-2015

 

Den Networks total expenditure in Q1-2015 at Rs 284.93 crore (95.4 per cent of TIO) was 5.9 per cent more than the Rs 269.18 crore (89.2 per cent of TIO) in Q4-2014 and was 24 per cent more than the Rs 229.69 crore (31.6 per cent of TIO) in the corresponding year ago quarter.

 

One of the major components of total expenditure is content cost in the case of Den Networks. The company paid Rs 106.42 crore (35.6 per cent of TIO) towards this expense head in Q1-2015, which was 5.5 per cent more than the Rs 100.85 crore (33.4 per cent of TIO) in Q4-2014 and was 25.2 per cent more than the Rs 85.01 crore (31.6 per cent of TIO) in Q1-2014.

 

Another major expense head is operational, administrative and other costs (admin cost). Den Networks admin cost in Q1-2015 at Rs 106.77 crore (35.7 per cent of TIO) which was 4.8 per cent more than the Rs 101.88 crore (33.8 per cent of TIO) and was 26.5 per cent more than the Rs 84.41 crore (31.4 per cent of TIO) in Q1-2014.

 

Based on the new accounting norms for calculating depreciation, the net effect is a higher depreciation of Rs 1.48 crore, which has resulted in a lower PAT in the current quarter.

 

The company says that it has deployed 2.7 lakh set-top boxes in the current quarter.

 

Den, through its wholly owned subsidiary – Den Soccer Pvt Ltd, has been awarded the team rights for Delhi - its home town. The team is named ‘Delhi Dynamos FC’. ISL is founded by IMG Reliance and Rupert Murdoch’s Star Group, under the aegis of All India Football Federation (AIFF). The inaugural season of the League is scheduled to begin in October, 2014.

 

Click here for the investor update

Click here for the financial statement

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/19/Untitled-1_4.jpg?itok=5SbRaNtY
Siti Networks says price revision benefits will accrue in second half

DAS paralysis in phase III markets is having an impact on Siti Networks (Siti Cable) performance. This was revealed by CEO V. D. Wadhwa to CNBC TV18 today.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/18/Untitled-1.jpg?itok=ULfulEhc
Hathway board clears GTPL IPO

Even as naysayers have been saying investor sentiment is pretty negative about the cable TV distribution sector in India, here is a company which is looking to swim against the tide. Cable TV and broadband internet services provider Hathway Cable & Datcom’s board today gave it the thumbs up to...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/16/Subhash%20Chandra.jpg?itok=yX8Ygq-I
Subhash Chandra's brothers step down as Siti Networks promoters

Mumbai: There’s change in the list of promoters at Siti Networks (earlier known as SitiCable). The national Indian MSO informed the Bombay stock exchange last week that - as part of a family arrangement and agreement - Jawahar Lal Goel, Laxmi Narain Goel and Ashok Kumar Goel along with their...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/16/SITI%20network.jpg?itok=-OCg_g0z
Siti Cable Network renamed as Siti Networks

MUMBAI: A new name brings in new vibes and possibly a new direction. At least that ‘s what the Essel group is aiming for if one goes by the name change it has resorted to at its national cable TV MSO Siti Cable. Last week, It informed the Bombay stock exchange, that it will be called Siti...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/12/Untitled-1_0.jpg?itok=ou2_KgVz
SNL Kagan says US cable TV will be robust despite decline in video

The naysayers have been making a cacophony of sound about the upcoming gradual squeezing out of life of the US cable TV sector. They have been citing the rampant cord-cutting, slimming down of bundles and the explosion in cheaper alternative OTT services as clear indicators that the countdown...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/09/cableTV.jpg?itok=fVGWf9Ae
GST: Both good and bad for the Indian cable TV sector

MUMBAI: India’s most ambitious indirect tax reform, the Goods and Service Tax (GST) got the green flag from the Lok Sabah on 8 August.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/08/Hathway%20Connect.jpg?itok=mcHzoEo0
Hathway goes mobile with Hathway Connect

Hathway has taken its path breaking LCO portal- Hathway Connect to the next level by launching the Mobile APP version for its local cable operators (LCOs), which will further enhance and empower the operators in strengthening their business operations while “On The Move.”

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/12/cablea.jpg?itok=Dvy_SoL0
DAS effect: MIB registered MSOs' list nears 1,000

Although the government is adamant about extending the deadline of the final phase of digital addressable system, the couutry which claims to have more than 60,000 cable operators is finally nearing a total of 1000 multi-system operators who provide signals to them.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/07/29/V%20Naidu.jpg?itok=BZ7Pl2L2
Action "reportedly" taken against LCOs in Kurnool and Aurangabad showing Peace TV: Naidu

Reiterating that action was taken against telecasting of unpermitted television channels, Information and Broadcasting Minister M Vekaiaih Naidu said today that such complaints were received against some cable operators from some districts such as Kurnool and Aurangabad regarding carriage of Peace...

Cable TV Local Cable Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories