Cable TV

Goldman Sachs to up stake in cable TV MSO DEN Networks; to invest Rs 142.43 crore

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/09/21/Untitled-2.jpg?itok=dpccKQA6

MUMBAI: MSO DEN Networks has proved the naysayers - who have been carping that the Indian cable TV sector is as insipid as dry sawdust - wrong. The company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore. The divestment is expected to trim promoter stake in the company to 37 percent.

Board approval for this transaction came through yesterday and the company is seeking its shareholders’ nod through an extraordinary general meeting which is scheduled for 14 October 2016. DEN Networks informed the BSE about its intentions yesterday.

Media observers say that the Indian cable TV ecosystem – including the government, the regulator TRAI, broadcasters, MSOs and cable TV operators - has stumbled in the digitization process which was mandated by the ministry of information and broadcasting four years back. They have also been saying that investor sentiment towards the sector is pretty weak. Shares of most leading Indian cable TV companies have been depressed, and have been parked at lows.

However, DEN Networks has been taking steps to correct the perception. It has brought back its CEO SN Sharma who has since been working on raising revenues and profitability.

The Goldman investment should come as a shot in the arm for DEN Networks as well as the Indian cable TV sector which is grappling with reinventing its business model.

The company's CFO Manish Dawar told CNBC TV18 that the company will be utilising the funds to invest in the broadband business as well as to reduce its debt. Earlier, this month, it had got board approval to demerge its broadband/internet service provider (ISP) business undertaking into its wholly owned subsidiary Skynet Cable Network . The company's ISP business had a turnover of around Rs 40 crore in FY-2016.

Dawar told the business news channel that DEN's performance is on the upswing. "In Q1 we have already turned positive on EBITDA basis and if we were to look at I am talking about pre-activation which is what the investors wanted to kind of look at, so, therefore Q1 on cable business we are already EBITDA positive. Broadband is progressing very well, we have been able to reduce our losses tremendously over the last one year," he said. "TV-Shop we are very close to break even. So, if you were to look at on a consolidated basis also, in the current quarter and I am talking about on a like-to- like basis, last quarter we were at minus (–) Rs 5 crore and the current quarter is positive Rs 5 crore on consolidated basis."

Investors greeted the Goldman Sachs announcement with delight. DEN Networks shares hit a high of Rs 85 during day trading yesterday only to close at Rs 80.85 - a rise of 3.5 per cent. The company’s share had hit a 52 week high of Rs 133 (21 September 2015) and it had dropped to a low of Rs 60.50 on 15 February 2016.

The company also made an investor presentation yesterday in which it stated that its digital rollout is progressing well. Of the 13 million subscribers it has, almost 9.8 million of them have upgraded to digital in Q1 2017. Five million of these are in DAS Phase I & II areas with the remainder being in Phase III and phase IV.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/11/Digital.jpg?itok=XJmRussd
India, China to provide 50% of global pay TV subs by 2023

NEW DELHI: India and China will together provide half the world’s pay TV subscribers by 2023, according to a new global report that forecasts 95 million additional pay TV subscribers would get added between 2017 and 2023 to take the global total to 1.10 billion. China will continue to supply about...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/06/den.jpg?itok=aA0Ds281
DEN expands broadband services; plans Rs 100 cr capex

DEN Broadband Pvt Ltd (DEN) has expanded its hi-speed internet services to 100 cities across India. After an encouraging response to the pilot project in five cities, DEN has already started its first phase of expansion in 15 cities.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/04/den.jpg?itok=ci47ACHf
Den Networks appoints Himanshu Jindal as CFO

Den Networks has appointed Himanshu Jindal as chief financial officer with immediate effect.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/03/hathway.jpg?itok=iL9Asqfk
Hathway Bhawani appoints Vatan Pathan as CEO

Hathway Bhawani Cabletel & Datacom ‍(Hathway Bhawani) has approved the appointment of Vatan Pathan​ as CEO with immediate effect. Pathan has been the additional director at Hathway Bhawani Cabletel and Datacom Ltd since 7 November 2017.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/03/31/vinit.jpg?itok=jaMtKdMt
Hathway CFO Vineet Garg resigns

Hathway Cable and Datacom chief financial officer (CFO) Vineet Garg has resigned which will be effective from 15 May 2018. He has also resigned as a director from the board of Hathway Bhawani Cabletel and Datacom.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/03/26/tdsat.jpg?itok=SdIdmV-l
TDSAT prohibits Scod18 from relaying IndiaCast channels

Scod18 Networking Pvt Ltd (Scod18), a multi-system operator (MSO), has been restrained by the Telecom Disputes Settlement Appellate Tribunal (TDSAT) from taking signals of IndiaCast Media Distribution Pvt Ltd’s (IndiaCast) channels from any other operator.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/03/13/Ortel.jpg?itok=fjL_giQu
Ortel to issue shares worth Rs 8.75 cr to promoters

The board of directors of Ortel Communications, the multi-system operator (MSO), has approved the issue of equity shares to promoter group entities.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/19/in.jpg?itok=nHQvEPXR
INDUSIND Media live telecasts "Magnetic Maharashtra Convergence 2018 - Global Investors Summit"

INDUSIND Media & Communications limited of Hinduja Group provides the live telecast of events from “Magnetic Maharashtra Convergence 2018 – Global Investors Summit” through their Indigital services for the benefit of all their viewers in Greater Mumbai, Maharshtra and some Key cities in India...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/19/Hathway-800.jpg?itok=ECpfVVbW
Hathway leads the way in wireline net subs addition in Q3

BENGALURU: Over the past few years, multi-system operators, or MSOs, and cable television operators have been trying to enhance revenue by offering broadband internet services riding piggyback on their cable TV network wires.

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories