Cable TV

EnterMedia 2001 moots broadcaster-MSO promoted regulatory body

Published

24 years ago

February 21, 2002

It may sound Utopian, but the Entertainment Report, put out by the Confederation of Indian Industry (CII) and Ernst & Young, believes that a self-regulatory body comprising MSOs and broadcasters can solve most of the ills plaguing the television industry in the country.

The report, EnterMedia 2001, was released yesterday during the inauguration of the two-day conference on “The Business of Entertainment” organised by the CII in Mumbai.

The report suggests the following measures that can bring about a healthy MSO-broadcaster relationship:

Developing a model for pricing of channels
Supervising cable operators‘ operations
Fighting piracy
Developing a TRP model
The issue of under reporting of the subscriber base, which has been the cause of friction between the MSOs and broadcasters can be tackled by developing a model for channel pricing, the report says. This can be achieved by taking into account channel TRPs, viewership demand, and service tax, competition and entertainment duties. Such a model will benefit both parties due to comprehensive coverage of all aspects.
The new system that is envisaged presupposes regularly updating of the subscriber base through the MSOs to the broadcasters, increasing awareness of IPR legislations among cable ops through leading channels and developing a rating measurement system that reflects the true worth of a programme.
Again, the report leaves the finer and more tedious business of developing such a model to a happy co-operation between the two warring parties.

Whither DTH?
For direct to home broadcast to become a viable option, the report recommends that the government reconsider the 20 per cent cap on broadcasters‘ equity in any new DTH venture, which restricts the primary investor‘s majority shareholding. The government also needs to create a level playing field to ensure that the first player who invests in setting up a customer base in an Open Architecture model does not suffer with the entry of other players. DTH, the report notes, is likely to throw up several problems like a mismatch between the set top box design and the DTH service configuration in the Open Architecture System. The consumer‘s range of options is likely to be governed by the alternatives permitted by the access card provided by the DTH operator.

The report has a pat on the cable ops‘ back for laying a network that reaches 40 million households in less than 10 years, thus covering nearly half the television set owning population in the country. At the same time, it castigates the ops for the lack of proper monitoring and supervisory system that has led to underreporting, the main bone of contention between them and the MSOs. On the issue of customer addressability, the cable ops have the sympathy of the report, which points out that MSOs are often arm twisted by broadcasters into telecasting a ‘bouquet of channels‘, including even the ones that do not have adequate viewership.

What The government Can Do
Television content, which has burgeoned into a Rs 25,000 million industry, generating demand for 40,000 hours of original software for 43 channels in FY 2000, needs to be granted ‘preferred industry‘ status by providing incentives similar to the IT software indstry, the report says. Among the proposals mooted are:

Creation of special economic zones for TV production studios
Exemption of income on export of TV software for a period of five years
Lowering of import duties on production equipment similar to exemption on cinematographic equipment.

Get In Some Professionalism
The TV software industry needs an injection of professionalism, the report says, mooting the setting up of technical training institutes for improving the quality of content. This sector is poised to register a strong growth because of the increase in demand for content, programming rates and revenues from ads accruing to content producers. The report suggests the government‘s infrastructure support in establishing such institutes will go a long way in beefing the qaulity of software to international levels.

The television content segment, essentially a seller‘s market, will eventually regain a balance between demand and supply following the imminent shakeout among the channels. The report however warns that the segment will come under tremendous pressure to keep up with the demands of viewers.

It recommends that Indian content companies should invest in infrastructure and expand operations rapidly across media segments. At the same time, the report says, they should aim to become global content players by leveraging on their cost advantage and developing content for the international market.

Related Topics:broadcaster Business of Entertainment CII DTH EnterMedia IPR MSO Regulatory body research TRP

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Den Networks Q3 profit steady despite revenue pressure

Published

2 months ago

January 19, 2026

indiantelevision.com Team

MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.

Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.

Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.

The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.

In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.

Cable TV

Plugging along as Hathway tunes in steady profits this quarter

Published

2 months ago

January 17, 2026

indiantelevision.com Team

MUMBAI: In a quarter where staying connected mattered more than moving fast, Hathway Cable and Datacom kept its signal steady. The cable and broadband major reported a net profit of Rs 21.7 crore for the December 2025 quarter, marking a clear improvement from Rs 13.6 crore a year earlier, even as pressures persisted in parts of its operating portfolio.

For the quarter ended December 31, 2025, revenue from operations stood largely flat at Rs 536.6 crore, compared with Rs 511.2 crore in the same period last year. Including other income of Rs 21.1 crore, total income rose to Rs 557.7 crore, reflecting incremental gains despite a competitive media and connectivity landscape.

Profitability improved on the back of disciplined cost control and higher contribution from associates. Profit before tax increased to Rs 28.2 crore, up from Rs 19.1 crore in Q3 FY25, aided by Rs 3.9 crore in share of profit from associates and joint ventures. After tax, earnings for the quarter climbed nearly 60 per cent year-on-year.

Over the nine months ended December 31, 2025, Hathway reported a net profit of Rs 71 crore, compared with Rs 57.7 crore in the corresponding period last year. Total income for the nine months came in at Rs 1,677.3 crore, up from Rs 1,599.8 crore, while profit before tax rose to Rs 94.7 crore from Rs 84.2 crore.

A closer look at the segments shows a familiar split story. The cable television business remained under pressure, reporting a segment loss of Rs 11.4 crore for the quarter, though this narrowed sharply from the Rs 16.6 crore loss seen a year ago. In contrast, the broadband business returned to the black, delivering a modest but positive contribution of Rs 4.2 crore, helped by associate income. Dealing in securities continued to be a bright spot, generating Rs 14.7 crore in quarterly profits.

Costs stayed broadly contained. Pay channel costs, the single largest expense, rose to Rs 287.4 crore, while depreciation and amortisation stood at Rs 74 crore. Finance costs remained negligible at Rs 0.2 crore, keeping leverage risks in check.

Hathway’s earnings per share for the quarter improved to Rs 0.12, up from Rs 0.08 a year ago. The company maintained a strong balance sheet, with total assets of Rs 5,302.4 crore and total liabilities of Rs 848.9 crore as of December 31, 2025.

While structural challenges persist in the traditional cable business, the numbers suggest Hathway is slowly recalibrating its mix trimming losses where needed, leaning on associate income, and keeping the broadband engine ticking. For now, the company may not be racing ahead, but it is clearly staying tuned in to profitability.

Cable TV

Signal drop Tejas Networks’ numbers stay patchy in a volatile quarter

Published

2 months ago

January 10, 2026

indiantelevision.com Team

MUMBAI: In telecom, even the strongest signals face interference and Tejas Networks Limited’s latest numbers show just how noisy the airwaves remain. The Tata Group-backed networking firm reported unaudited standalone revenue of Rs 305.72 crore for the quarter ended December 31, 2025, up sequentially from Rs 261.37 crore in the September quarter, but sharply lower compared with the Rs 2,642.05 crore clocked in the year-ago period. The topline recovery, however, was overshadowed by a pre-tax loss of Rs 303.20 crore, widening from a Rs 473.03 crore loss in the previous quarter, and reversing a Rs 211.06 crore profit reported in the December 2024 quarter.

After tax, the company posted a loss of Rs 196.89 crore for Q3 FY26, compared with a loss of Rs 307.17 crore in Q2 FY26 and a profit of Rs 165.42 crore a year earlier. For the nine months ended December 31, 2025, Tejas Networks reported revenue of Rs 769.02 crore and a loss after tax of Rs 697.97 crore, a sharp swing from a Rs 512.67 crore profit in the corresponding nine-month period last year. The numbers reflect a year marked by execution challenges rather than demand collapse.

Costs remained the dominant spoiler. Total expenses for the December quarter stood at Rs 616.50 crore, driven by elevated material costs, employee expenses and provisioning. The company also flagged several one-offs and adjustments: a Rs 9.85 crore provision linked to the implementation of new labour codes, ₹24.35 crore in warranty provisions, and reversals related to inventory obsolescence. Earlier quarters had already absorbed heavy charges tied to contract manufacturing losses, design changes and write-downs, the hangover from which continues to weigh on profitability.

Tejas reiterated that it operates as a single reportable segment focused on telecom and data networking products and services, offering little insulation from sector-wide volatility. While revenue momentum has stabilised sequentially, the contrast with the previous financial year remains stark. For context, the company closed FY25 with audited standalone revenue of Rs 8,915.73 crore and a profit after tax of Rs 450.66 crore, underscoring how sharply the operating environment has shifted in FY26.

The results were reviewed by the audit committee and approved by the board on January 9, 2026, but they leave investors with a familiar question: when does recovery turn structural rather than episodic? For now, Tejas Networks appears to be in reset mode, balancing execution clean-up with cost discipline. In a sector where margins can be as fragile as fibre strands, the next few quarters will matter as much as the signals the company sends to the market.