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/2019/12/03/vbs.jpg?itok=aIFec78c
VBS 2019 to focus on post NTO environment, relevance of cable and rise of internet

The year 2019 has fundamentally changed Indian TV broadcast industry. The long-awaited New Tariff Order (NTO) was finally greenlit in February, forcing broadcast networks, DTH players and cable operators to move to a new tariff regime.

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/27/vbs.jpg?itok=lXdFgvOA
Video and Broadband Summit 2019 to discuss way forward with NTO & changing digital landscape

How is the new tariff order (NTO) impacting the broadcast and video distribution landscape in India? How can broadcast networks effectively partner with LCOs and MSOs to successfully navigate the post-NTO environment? These are some of the key themes which will be discussed at the Video and...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/27/mib.jpg?itok=DfPUxleW
MSO applicants seek approval status in OHM

Five MSO applicants and registered MSOs participated in an open house meeting to ascertain the status of their MSO application for grant of registration along with other queries. Representatives from TJ  Cable Network, World Phone Infrastructure Services, Haur Cable Network, Lamjingba Times Pvt Ltd...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/06/Arvind-Prabhu.jpg?itok=nf9Gdtch
MCOF's Arvind Prabhu on post-NTO era, LCO concerns, OTT regulation

The turmoil of the NTO is settling, but the ecosystem is yet to benefit from it, according to Maharashtra Cable Operators Foundation (MCOF) president Arvind Prabhu.

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/31/ashok.jpg?itok=ysTPbE9U
InDigital announces ESOPs for local cable operators

Diwali is a time for celebration and in keeping with the spirit, business partners and local cable operators (LCOs) of InDigital, the digital cable network and NXT Digital, the HITS or Headend-In-The-Sky network of the Hinduja Group’s media vertical were in for a pleasant surprise.

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/17/aidcf.jpg?itok=pqp_OH-z
All India Digital Cable Federation welcomes festive promotion by broadcasters

MUMBAI: While All India Digital Cable Federation (AIDCF) in association with its LCO operator partners always strives to deliver better services to consumers, the federation has welcomed festive promotion by broadcasters offering a discount on select a-la carte channels. AIDCF hopes that such...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/15/gt_0.jpg?itok=BFtOPXYl
GTPL Hathway posts consolidated revenue of Rs 4,470 mn in Q2 2020

Gujarat-based multi system operator (MSO) GTPL Hathway has posted consolidated revenue of Rs 4,470 million (ex EPC contract) for the quarter ended 30 September, which increased 41 per cent year-over-year. While the cable TV subscription revenue stood at Rs 2,608 million, broadband revenue stood at...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/15/gt.jpg?itok=qhjDhFPl
GTPL Hathway appoints Anil Bothra as CFO

MUMBAI: GTPL Hathway Ltd has appointed Anil Bothra as its chief financial officer with effect from 14 October 2019.

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/01/harmonic.jpg?itok=8uyD5ZEq
Harmonic Introduces Powerful New Analytics-Driven Service for Cable Operators

SAN JOSE, Calif. - Harmonic (NASDAQ: HLIT) today announced CableOS™ Central, a new AI-enabled service that features data analytics, 24/7 operational support and engagement tools for cable operators. Designed to complement Harmonic's CableOS virtualized CMTS solution, CableOS Central provides...

Cable TV Multi System Operators

Sign up for our Newsletter

subscribe for latest stories