Cable TV

Den Networks reports higher profits despite lower revenue in Q1-2021

Broadband business numbers were down

Den Networks

BENGALURU: Indian cable TV and broadband services provider Den Networks Ltd (Den) reported 3.8 percent lower consolidated revenue for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) as compared to the corresponding year ago quarter (Q1 2020). Consolidated operating profit (simple EBITDA) for the period under review increased 55.2 percent in Q1 2021 as compared to Q1 2020. The company’s profit after tax (PAT) more than quadrupled (increased by 308 percent) y-o-y in Q1 2021. The company has pared its expenses in Q1 2021 as compared to Q1 2020.

Den reported consolidated operating revenues of Rs 301.31 crore and Rs 313.15 crore for Q1 2021 and Q1 2020 respectively. Consolidated EBITDA for Q1 2021 was Rs 63.93 crore, for Q1 2020 it was Rs 41.19 crore. PAT for the period under review was Rs 58.32 crore as compared to Rs 14.31 crore in the corresponding year ago quarter. Total Income (revenue) for the period was flat at Rs 364.47 crore as compared to Rs 364.40 crore in Q1 2020.

Segment Revenue

Den Networks has two major segments in Cable Business and Broadband Business.

Den reported 3.6 percent decline in total revenue for its Cable Business in Q1 2021 at Rs 284.47 crore as compared to Rs 295.17 crore in Q1 2020. The company reported 6.93 crore operating result for the quarter under review as compared to an operating loss (negative result) of Rs 11.07 crore for Q1 2020.

Den reported 14 percent growth in subscription revenue for its Cable Business for Q1 2021 at Rs 195 crore as compared to Rs 171 crore in the corresponding quarter of the previous year. Placement/Marketing Income declined 37.1 percent y-o-y in Q1 2020 to Rs 61 crore from Rs 97 crore. Activation Income increased 4.3 percent in Q1 2020 to Rs 24 crore from Rs 23 crore in Q1 2020. PAT for the segment more than tripled to Rs 65 crore in Q1 2020 as compared to Rs 20 crore for Q1 2020.

Den reported 6.3 percent lower Broadband Business operating revenue at Rs 16.85 crore in Q1 2021 as compared to Rs 17.98 crore in Q1 2020. The segment’s operating loss (negative result) increased to Rs 6.32 crore in Q1 2020 as compared to operating loss of Rs 5.45 crore in Q1 2020.

Let us look at the other numbers reported by Den for Q1 2021

Total expenditure for Q1 2021 declined 12.8 percent to Rs 302.95 crore from Rs 347.32 crore in Q1 2020. Content costs declined 15.2 percent in the quarter to Rs 135.20 crore from Rs 159.41 crore in the corresponding year ago quarter. Placement fees declined 62.8 percent to Rs 3.59 crore in Q1 2021 as compared to Rs 9.65 crore in Q1 2020. Employee benefits expense for Q1 2021 increased 5.1 percent y-o-y to Rs 23.92 crore from Rs 22.75 crore in Q1 2020. Finance costs in Q1 2021 declined 87.2 percent to Rs 2.26 crore from Rs 17.64 crore. Other expenses declined 12.8 percent in Q1 2021 to Rs 74.69 crore from Rs 80.15 crore in Q1 2020.

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