Cable TV

Den reports improved numbers for Q2 over Q1

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/11/15/den.jpg?itok=wGgyN902

BENGALURU: The Sameer Manchanda-led Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 5.3 percent drop in consolidated operating revenue numbers for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y, Q2 2018). Though revenue based on a quarter on quarter (q-o-q) basis and some other numbers were lower, the company’s operating profit or EBITDA in Q2 2019 was better than Q1 2019. The company said in Q1 2019 that it had tried to cut down costs, and it has managed to do that, but its consolidated content costs during the quarter under review increased by almost Rs 16 crore y-o-y, at but the same time have declined by almost Rs 2 crore q-o-q.
Den Network’s operating profit (EBITDA) declined 37.9 percent y-o-y during the period under review to Rs 50.63 crore (16.1 percent of operating revenue) from Rs 81.55 crore (26 percent of operating revenue) but increased 9.9 percent q-o-q from Rs 57.84 crore (18 percent of operating revenue) as mentioned above.

The company’s losses – after taxes (net loss) as well as total comprehensive loss (TCL) have increased y-o-y as well as q-o-q in the period under review. The company reported a net loss of Rs 28.54 crore during Q2 2019 and a loss of Rs 27.98 crore for Q1 2019 as compared to a net profit (PAT) of Rs 1.11 crore in Q2 2018. Den reported TCL of Rs 28.34 crore for Q2 2019, TCL of Rs 27.75 crore in Q1 2019 as compared to total comprehensive income of Rs 1.31 crore in Q2 2018.

Segment numbers

Den has two segments – cable distribution networks (Cable) and broadband. Both segments reported lower y-o-y revenues, but in the case of broadband, Den reported a slight q-o-q increase in revenue for Q2 2019.

Cable segment revenue reduced 4.6 percent y-o-y in Q2 2019 to Rs 293.86 crore from Rs 307.99 crore in Q2 2018 and reduced 1.6 percent q-o-q from Rs 298.59 crore in Q1 2019. Den reported that the segment had an operating loss of Rs 5.82 crore as compared to an operating profit of Rs 27.75 crore in Q2 2018 but the loss in the quarter under review was lower than the operating loss Rs 8.26 crore in Q1 2019.

Den Networks reported 16.6 percent y-o-y decline in operating revenue for its broadband segment in Q2 2019 at Rs 16.51 crore as compared to Rs 19.80 crore in Q2 2018 but 5.9 percent more than the operating revenue of Rs 15.59 crore in Q1 2019. The segment’s operating loss reduced slightly to Rs 6.16 crore in Q2 2019 from an operating loss of Rs 8 crore in Q1 2019 and an operating loss of Rs 8.93 crore in Q2 2018.

Let us look at the numbers reported by Den Networks for Q1 2019

Den Networks' consolidated revenue from operations in Q2 2019 was Rs 310.37 crore, Rs 314.18 crore in Q1 2019 and Rs 327.79 crore in Q2 2018. Consolidated total revenue including consolidated other income declined 5.9 percent y-o-y and 2.5 percent q-o-q in Q2 2019 at Rs 315.05 crore from Rs 334.90 crore in Q2 2018 and from Rs 322.98 crore in Q1 2019.

Consolidated total expenditure for the quarter under review increased 11.9 percent y-o-y in Q2 2019 to Rs 336.78 crore (107.3 percent of operating revenue) from Rs 326.12 crore (103.8 percent of operating revenue) in the corresponding quarter of the previous year but declined 1.3 percent q-o-q from Rs 347.07 crore (110.59 percent of operating revenue).

As mentioned above, the company has seen a y-o-y rise in content cost in actual value as well as in terms of percentage of operating revenue. Consolidated content cost increased 11.9 percent y-o-y in Q2 2019 to Rs 148.23 crore (47.2 percent of operating revenue) as compared to Rs 132.47 crore (42.2 percent of operating revenue) in Q2 2018 but declined 1.3 percent q-o-q from Rs 150.12 crore (47.8 percent of operating revenue). Consolidated placement fees increased 3 percent y-o-y in Q2 2019 to Rs 11.02 crore (3.5 percent of operating revenue) from Rs 10.70 crore (3.4 percent of operating revenue) and increased 9.7 percent q-o-q from Rs 10.05 crore (3.2 percent of operating revenue).

Den Networks' consolidated employee benefits expense during the period under review declined 13.7 percent y-o-y to Rs 23.64 crore (7.5 percent of operating revenue) from Rs 27.38 crore (8.7 percent of operating revenue) in Q2 2018 but increased 0.8 percent q-o-q from Rs 23.45 crore (7.5 percent of operating revenue). Consolidated other expenses in Q2 2019 increased 1.3 percent y-o-y to Rs 76.65 crore (24.4 percent of operating revenue) in Q1 2019 from Rs 75.69 crore (24.1 percent of operating revenue) in the corresponding quarter of the previous year but reduced 8.9 percent q-o-q from Rs 84.16 crore (26.8 percent of operating revenue).

Strategic investments in Den by Reliance Industries Ltd

On 17 October 2018, the Mukesh Ambani-led Reliance Industries reported to the bourses that it has decided to make strategic investments thought a primary investment of Rs 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 percent stake in Den. Reliance also said that it would make a primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 percent stake in Hathway Cable and Datacom Ltd (Hathway) of the Rajan Raheja group.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/30/gtpl.jpg?itok=Av-oypkq
Decoding Covid2019 impact on GTPL Hathway’s cable, broadband business

As the country is struggling with the Covid2019 pandemic, cable TV and internet have acted as the nervous system to keep people informed and entertained. Due to the need of staying connected, the cable and broadband service providers like GTPL Hathway have seen a surge in demand on both sides of...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/29/gtpl.jpg?itok=fjglLOcU
GTPL Hathway increases CAPEX in upgrading network, 70% transmitted into GPON technology

Traditional distributors like cable operators are feeling the heat of the competition from a number of easily accessible streaming services. But large multi-system operators are not sitting idle to watch the ruin of their long-built businesses. Hence, constantly upgrading has become the key to...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/tv.jpg?itok=ElAhdpKX
Lockdown impact on cable operators: Drop in STB sale and collection from connections

Despite higher viewership of linear television during the lockdown, the cable operators’ business in India has felt the heat of the Covid2019 pandemic. While sales of new set-top boxes and collection for existing connections witnessed a drop, customers down-traded packs.

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/18/brdss.jpg?itok=H0CHPDjq
BRDS Digital Cable TV & Broadband Services celebrates 25 Years of Cable TV Entertainment Service!

Entertainment is the art of instilling happiness away from the reality of lives. Having served as a medium of entertainment since its inception, Bhima Riddhi Digital Services (BRDS), now Metrocast Network India Pvt. Ltd., is celebrating 25 successful years of providing cable TV entertainment. What...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/16/cable.jpg?itok=sBfryZqA
Cable operators seek discounted tariffs from pay channels

MUMBAI: Maharashtra Cable Operators' Foundation (MCOF) has requested Indian Broadcasting Foundation (IBF) to urge its members – the pay channels – to offer discounted pay tariffs, if not waiving them altogether, for a period of four months from 20 April to 20 August. The MCOF has primarily cited...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/11/q.jpg?itok=THMac0cF
We are not a cable TV company but a digital services provider: IMCL’s Vynsley Fernandes

MUMBAI: Innovation is the key to sustain any business. With newer entrants capturing market share, emerging alternatives to traditional TV, the cable operators in the country have focused on creating a diverse portfolio of services. IndusInd Media and Communications Ltd. (IMCL) CEO Vynsley...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/05/tal.jpg?itok=IIDiXBU_
ZEEL lauds DPOs, urges online payment mechanisms via multilingual campaigns

In these difficult times caused by the Covid2019 pandemic, entertainment and information keep floating into our television sets despite the shelter-in-place mandate. Although the TV viewership growth slowed down in the sixth week of the Covid2019 disruption, it is evident that audiences across...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/01/mcof.jpg?itok=HhDs6hvI
MCOF seeks government relief for last-mile cable operators

In the wake of the Covid2019 crisis, Maharashtra Cable Operators Foundation (MCOF) has written a letter to the union minister of information and broadcasting Prakash Javadekar submitting its propositions for long-term relief and transformation of the last-mile cable operators. 

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/04/24/hat.jpg?itok=v2wSEeq6
Cable business drives Hathway’s return to profitability

Mukesh Ambani’s Reliance Industries Limited-owned Indian multi-system operator and internet services provider Hathway Cable and Datacom Limited (Hathway) reported consolidated profit after tax (PAT) of Rs 105.47 crore for the year ended 31 March 2020.

Cable TV Multi System Operators

Sign up for our Newsletter

subscribe for latest stories

* indicates required