DEN Networks: healthy revenue and profit growth in FY10

MUMBAI: The Sameer Manchanda-promoted multi system operator (MSO) Den Networks appears to have metamorphosed into a giant - almost overnight. If one goes by its latest financials, it probably has emerged as the biggest MSO in the country. The revenues it reported have apparently taken it ahead of its main and much talked about competitor Hathway.

Revenues for the year ended 31 March 2010 went up by 28.3 per cent touching Rs 9.19 billion (Rs 7.16 billion in FY09). Its other operating income more than doubled from Rs 41.6 million in FY09 to Rs 87.5 in FY10. Company sources say that the revenue from its cable operations stood at around Rs 5 billion for the fiscal. Hathway as a comparison notched up revenues of around Rs 4 billion for the fiscal. 
Demonstrating a very strong growth story, the company has posted a consolidated net profit of Rs 301.1 million for the fiscal ended 31 March 2010, as compared to a net loss of Rs 151.1 million it suffered in the previous fiscal.

The consolidated results includes the financials of its distribution JV Star DEN (50:50) and approximately 70 cable subsidiaries in which DEN holds a majority stake.

Den‘s expenses for the fiscal stood at Rs 8.62 billion, up from last fiscal‘s Rs 7.25 billion. The operating and administrative costs at Rs 7.72 billion rose in proportion to the firm‘s overall growth, however, the depreciation charges incurred this fiscal at Rs 328.8 million are twice as much as last fiscal‘s Rs 160.3 million.

On an operational level, the firm made a profit of Rs 567.7 million as compared to the operational loss it made in FY09 of Rs 82.1 million.  
Its other income in FY10 also more than doubled at Rs 65 million as compared to Rs 30 million in FY09. However, Den‘s interest expenses at Rs 194.4 million increased by 94.6 per cent.

On a standalone basis as well, the company has turned profitable as it posted a net profit of Rs 208.2 million, as against a net loss of Rs 137.6 million in the year ago period.

Total revenue jumped to Rs 3.28 billion in the fiscal from Rs 2.69 billion in the year ago period. Expenses grew marginally to Rs 2.95 billion (FY10), from Rs 2.73 billion (FY09).

The company boasts of a subscriber base of 11 million, including 400,000 digital subscribers. It claims a majority share in states like Uttar Pradesh, Delhi and Karnataka and parts of Maharashtra.

The cable MSO‘s ARPUs (average revenue per user) are at Rs 190 from direct subscribers and Rs 175 from secondary subscribers, sources claim.

The DEN shares closed at Rs 203.2 on Friday.

Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories