Cable TV

Incablenet pitches higher channel offering to push STBs

Published

21 years ago

July 20, 2005

For almost one year, IndusInd Media & Communications (IMCL) has been an organisation in turmoil.

Several senior executives have left the company, frustrated at the slow pace of growth of the multi system operator (MSO) business. The company has also trimmed the flab it had built when it wanted to introduce digital cable TV service at the time of conditional access system (CAS).

These have been tough times for MSOs who are caught between investments locked into CAS and the impending threat from direct-to-home (DTH) and IPTV (Internet Protocol television). They have been working out different strategies to mould their businesses into the future.

Hathway Cable & Datacom, for instance, is pushing for digital cable TV and broadband in a drive to have an integrated revenue stream. Zee Telefilms‘ Siticable, on the other hand, has taken up the additional task of laying part of the infrastructure for Dish TV while charting out a revival strategy through affiliate tie ups and the acquisition of Kolkata-based RPG Netcom. In Delhi, it is trying to cut out a deal with Spectranet which would give it the fibre backbone to centralise operations.

At Hinduja TMT, the parent company of IMCL, consolidation is no more the buzz word. A committee is masterminding various ways in which the media business can be demerged into a separate listed entity. Information technology (IT) will be the other listed company with mirror shareholding.

HTMT‘s reason: the new entities can achieve their individual business objectives faster and better.

So will cable TV distribution, film content and broadband businesses be merged? “A couple of alternatives are being discussed. It may involve multiple steps. But we haven‘t taken a final decision yet. Nor have we fixed a time frame,” HTMT CEO and MD K Thiagarajan tells Indiantelevision.com.

Though Incablenet (the brand under which IMCL operates its MSO business) dominates the media business of HTMT, it still has not moved out of its net loss position. But Thiagarajan believes the subscription revenues will jump this year. “We will also see some growth in

cable TV,” he says.

Incablenet has increased its content offerings on the digital system to 165 TV channels, the highest offered by any MSO in the country. Hathway offers 140 channels but has plans to scale it up. “With bandwidth choking on analogue systems, we feel subscribers who want more channels will buy our digital set-top boxes (STBs). We have not only upgraded our channel capacity but are also stressing on quality of service,” says Incablenet chief operating officer Srinivas Palakodeti.

Incablenet has also reduced the price of its bundled package of digital STBs and cable modems to Rs 5,555, down from Rs 5,999. “It is over Rs 1,000 cheaper if the subscriber was to buy both independently,” says Palakodeti.

Even this has barely helped Incablenet drive volumes and race ahead of competition. Palakodeti claims to have sold 10,000 digital STBs, which is well short of around 200,000 boxes the company has piled up. And Hathway has sold more STBs, with 15,000 boxes finding way into consumer homes. In an aggressive push, Hathway a few days ago introduced a combined package of STBs and cable modems at Rs 5,015, to be paid in a spread of 12 months.

Incablenet‘s main focus is Mumbai and, to a smaller extent, Delhi. The next destination is Bangalore. Hathway offers its digital services in three cities while plans are on to launch in Bangalore soon. “We are examining various options on how to reach Bangalore but plans have not been firmed up yet. We are looking at the optic fibre route that can hook up Belgaum and Mysore along with Bangalore. Or we may decide to install a digital headend to offer these services. But our focus this year will continue to be Mumbai where we have had the bulk of our sales,” says Palakodeti.

Augmenting revenues from subscription is also on Incablenet‘s radar. Sources say the MSO is targeting an increase of Rs 240 million this fiscal. As a step in this direction, Incablenet has hiked the rate to the operator by Rs 30 a month to Rs 180.

Carriage or positioning fee has helped improve the company‘s health. Sources say Incablenet earned around Rs 120 million last fiscal, which could go up in the current financial year. Palakodeti declines to comment on this, but says this wouldn‘t help turn around the company. “In any case, this is a short term phenomenon. We are still in a cash loss situation as we have fresh expenses towards maintaining CAS. We also expect the payout to broadcasters, which was almost flat last year, to go up in the current fiscal because of the second pay bouquets,” says Palakodeti.

Adds Incablenet executive director, corporate services, Ashok Mansukhani: “We have approached the Telecom Regulatory Authority of India (Trai) for a clear and transparent pricing as broadcasters in reality are bundling their bouquets. We are awaiting order. We are also disappointed that the government has not come out with any clarity on CAS so far. We want a road map laid out for CAS.”

So how was Incablenet performed in 2004-05? Palakodeti refuses to reveal the figures at this stage, but says the company is still in losses (For 2003-04 results, see table).

IMCL Results

Income	2004 (Rs.in’000s)	2003 (Rs.in’000s)
Cable Television Transmission	764,971	680,916
Miscellaneous Income	292,253	129,754
Total Income	1,057,224	810,670
Operating Expenditure
Cable Television Operations	836,790	682,910
Other operating expenses	125,317	112,856
Total Operating Expenses	962,107	795,766
Operating Profit/(Loss)	95,117	14,904
Less : Interest	749	708
Depreciation	132,613	120,179
Amortization of teleserials	—	24
Preliminary, deferred and share issue expenses	1,268	1,300
Provision for doubtful debts / advances	1,900	87,249
Profit / (Loss) for the year	(41,413)	(194,556)

Incablenet has a reach of 4.5 million with a presence in 10 cities including Mumbai, Delhi, Bangalore, Ahmedabad, Baroda, Nashik, Nagpur, Hyderabad, and Mysore. The MSO has 65,000 direct points, the bulk of which are in Mumbai. It has a single centralised headend in each city, enabling it to streamline costs. In Mysore, it has a 48 per cent stake in United Mysore Network. A similar joint venture, USN, is in Bangalore.

“We are not expanding into new cities. We may decide to expand on the outskirts of cities,” says Palakodeti.

Also on the agenda is reviving Indore where Incablenet has lost its cable TV presence. Bhaskar Multinet, the cable TV arm of Dainik Bhaskar, has made severe inroads and enjoys a dominant share in Indore. “We have a broadband service through our fibre optic network. We plan to revive our cable TV presence in that market soon,” says Incablenet president Manoj Motwani.

With a stable price market, collections have improved. Income from cable Internet, which is run by a separate company, has not gone up much, as severe competition has undercut prices. “Cable broadband has just scratched the surface. Unless unlicensed Internet operators are weeded out, it can‘t take off in a big way. We are in the process of integrating the marketing operations with Incablenet. On the digital platform, we expect our broadband revenues to increase. We are also examining the option of whether we can buy bandwidth in bulk and drop the rates to get in more customers,” says Mansukhani.

Early in the year, Incablenet brought in Deepak Varma as the CEO. But barely two months into the job, he quit the company. Coming from a telecom background, he could not adjust to the complexities of the cable TV industry. “The industry operates in a way that is not in sync with the understanding that I have had with my past job experiences,” Varma, who had earlier served as COO of BPL Mobile Communications Mumbai, told Indiantelevision.com, after resigning from Incablenet.

Palakodeti, who was chief financial officer, will face the tough challenge of negotiating with broadcasters on pay channel rates, handling cable operators, and selling more digital services. But, as Mansukhani says, “Dynamic growth of MSOs will come only with CAS.”

Related Topics:CAS Datacom digital cable TV DTH Hathway Cable IMCL Incablenet IPTV MSO STB

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Cable TV

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.