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Category: Multi System Operators

  • Subscription revenue drives up Den’s PAT

    Subscription revenue drives up Den’s PAT

    MUMBAI: Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.

    Consolidated Q3 EBITDA (earnings before interests, taxes, depreciation and amortisation) stood at Rs 81 crore, 54 per cent higher than the Rs 53 crore reported a year ago but lower than the Rs 82 crore reported in the previous quarter. This EBITDA does not include the Rs 14 crore pertaining to entities that are not getting consolidated as per INDAS or else the overall consolidated EBITDA is Rs 95 crore.

    The MSO has been able to get higher subscriptions from phase III and IV markets with revenue growth from cable subscription 21 per cent higher than Q3 2017 and 6 per cent higher than Q2 2018. This was aided by 10 per cent higher average revenue per user (ARPU) collection from phase III areas on a quarter-on-quarter basis.

    Cable revenue stood at Rs 312 crore versus Rs 272 crore in the year ago quarter, up by 15 per cent. Cable EBITDA was Rs 82 crore, up from Rs 53 crore from Q3 2017, led by subscription growth and rationalisation of costs.

    Subscription revenue drove up consolidated PAT to Rs 2 crore from negative Rs 37 crore in Q3 FY2017 and Rs 1 crore in Q2 2018.

    The company stated that its broadband business was on track and that it managed to add 10,000 new subscribers during the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion. Cost optimisation initiatives have helped the broadband segment to break even which was negative Rs 1 crore in the previous quarter.

    Den Networks CEO SN Sharma said, “Den has been able to improve operational performance consistently every quarter with constant focus on increasing the subscription collections on the ground with a much controlled cost base. It is a time of pride and joy as we announce that as per the Trust Research Advisory research, Den has outshone all its competing brands and has emerged as the ‘Most attractive brand of 2017’ in the cable TV segment.”

    Also Read:

    Higher subscription & activation lead Den’s turnaround in Q2  

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    Den Networks buys 51% in VBS Digital

  • Hinduja Ventures board okays amalgamation with Grant Investrade

    Hinduja Ventures board okays amalgamation with Grant Investrade

    MUMBAI: Hinduja Ventures Ltd’s (HVL) the board of directors  has approved the amalgamation of Grant Investrade Ltd (GIL), a wholly owned subsidiary, into the company. 

    The appointed date for the scheme of amalgamation is 1 October 2017.

    The approval has been granted subject to the approval of the National Company Law Tribunal (NCLT) at Mumbai, the approval of the shareholders and other such approvals as may be required.

    HVL has business interests in media, real estate and treasury while GIL is in the business of running channels on cable TV and treasury.

    Earlier, GIL housed the headend in the sky (HITS) business of HVL. The HITS business has now been merged with the cable TV business under IndusInd Media and Communications Ltd (IMCL), which is also a subsidiary company.

    HVL’s revenue from operations in financial year 2017 was Rs 201.7 crore while the paid-up capital is Rs 20.55 crore. GIL, whose paid-up capital is Rs 6.78 crore, had earned revenue of Rs 22.7 crore during the year.

    Since the transaction falls within the related party transaction no shares will be issued to GIL.

    Also Read:

    HVL reports lower loss for fiscal ’17, media & communications segment revenue up

    HVL receives NCLT nod for GIL’s HITS to de-merge into Indusind Media

  • Den Networks buys 51% in VBS Digital

    Den Networks buys 51% in VBS Digital

    MUMBAI: Multi-system operator Den Networks Ltd (Den) has acquired 51 per cent stake in cable televison distributor VBS Digital Distribution Network Pvt Ltd (VBS Digital) for Rs 2.64 crore in cash. According to Den’s release to the Bombay Stock Exchange, the deal will strengthen the company’s cable TV network in Uttar Pradesh.

    Den provides cable TV distribution and broadband services in 13 states, including Delhi, Uttar Pradesh, Karnataka, and Maharashtra. Incorporated in 2015, VBS Digital posted revenue of Rs 5.82 crore in the financial year ended March 31, 2017.

    Promoters and Goldman Sachs together hold about 61.28 per cent stake in Den. In June 2017, Den had sold its entire stake in TV merchandise channel Macro Commerce Pvt Ltd to focus on the core business.

    Also read:

    Higher subscription & activation lead Den’s turnaround in Q2

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    Nakul Chopra is new BARC chairman

  • Ortel to move broadband business to new entity

    Ortel to move broadband business to new entity

    MUMBAI: Multi-system operator Ortel Communications Ltd plans to incorporate a new wholly owned subsidiary, Ortel Broadband Ltd, in order to operate the broadband business separately. 

    In a release to the Bombay Stock Exchange today, Ortel Communications stated that the board of directors had approved the decision. The company will transfer the broadband business to this new entity subject to requisite approvals.

    The restructuring of the business comes on the back of the company facing severe competition in its core market Odisha and a shortfall in collections and repayment of debt.

    Ortel, with its operations focused in Odisha, Chhattisgarh, Andhra Pradesh, Telengana, West Bengal, and Madhya Pradesh, has been a trendsetter in offering customer-centric broadband plans. 

    Taking a big step towards recovery, the company unveiled its new unlimited data plans starting from Rs 99 per month last week.

    Also read:

    Ortel takes on competition with new broadband plans

    Multiple challenges weaken Ortel numbers in second quarter

  • DEN Networks tops as most attractive Cable TV brand: TRA Research

    DEN Networks tops as most attractive Cable TV brand: TRA Research

    DEN Networks Ltd, one of the largest cable MSOs in India, is the top cable brand according to the “Most Attractive Brands 2017” report by Trust Research Advisory (TRA), a brands insight company. S.N. Sharma, CEO, DEN Networks said, “We are delighted to be recognised as the most attractive Cable TV brand in the country by TRA. This recognition reflects our enduring efforts to fulfill customer satisfaction and quality service. As a dynamic and technologically driven company, we have been the leading innovator in the digital cable TV industry in India. From being the first national MSO to launch its own OTT app – DEN TV+ to launching premium international gaming service “DEN Playin’ TV” on our network and introducing special HD Set-top box with accessories to enjoy audio and video streaming over internet on non-smart TVs, our initiatives have been aimed at delighting our customers, attuned to their changing preferences and lifestyle needs. We hope to cement our leadership position by continually redefining and improving the industry benchmarks in TV viewing experience.”

    ‘Most Attractive Brands’ is an annual study conducted by TRA. The rankings are based on a primary research conducted across 16 Indian cities among 2,456 consumers. The study generated nearly 5 million data points and 5,000 unique brands mentions of which 1000 brands are listed in the list. The research is based on TRA’s proprietary 36-attribute Attractiveness Matrix.

  • Government to once again make MHA clearance compulsory for MSOs?

    Government to once again make MHA clearance compulsory for MSOs?

    MUMBAI: Are there more regulatory controls coming on the cable TV industry? If reports emerging in the media (The Asian Age) are to be believed, then they probably are. According to the newspaper, every multisystem operator (MSO) which is licensed with the ministry of information & broadcasting (MIB), will now have to also seek the ministry of home affairs’ security (MHA’s) clearance. A notification to this effect is being planned and passed by the Narendra Modi government.

     Hitherto, broadcasters and satellite service providers had to go through this procedure. MSOs could just get a licence from the post office to operate in the country, following which they had to get a digital licence from the MIB. The security clearance from the MHA requirement was discontinued a couple of years ago to speed up the  pace of cable TV digitalisation.

     The newspaper says the government was forced to take such a step for MSOs as well because the MIB had received complaints that several cable TV operators are continuing to retransmit channels which showed content that was potentially harmful to the nation’s security and was deemed as objectionable.

     The government is seeking to make it compulsory for MSOs to get annually vetted by the central intelligence and government security agencies to prevent this from occurring.

     No confirmation, from the MIB or government sources, was available at the time of writing this report.

  • MSOs move Madras HC seeking relief on inter-connect pacts

    MSOs move Madras HC seeking relief on inter-connect pacts

    MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime announced in 2016.

    The tariff order, along with guidelines on quality of services, was stayed by the Supreme Court pending a final directive from the Madras High Court.

    Pleading that renegotiating inter-connect agreements on expiry at this point of time could lead to losses to the MSOs and subscribers, in general, the apex body of digital MSOs in India has sought judicial relief.

    Telecoms and broadcast regulator TRAI, Star India and its affiliate Vijay TV have been made respondents in the case that, according to industry sources, has not yet been listed for an initial hearing at Tamil Nadu’s top court.

    Madras HC, which was hearing a case pertaining to TRAI’s validity to have jurisdiction over matters relating to copyrights, is yet to announce its final verdict. The petition was filed by Star India and Vijay TV in late 2016, which effectively put a stop to the implementation of a new tariff regime announced by TRAI in October 2016 for the broadcast sector and distribution platforms.

    Apart from the tariff order, originally issued on 10 October 2016, the regulator had also issued the DAS interconnect regulations and the standards of quality of service and consumer protection regulations. These guidelines, after being debated and allowed by Chennai and Delhi courts initially were finally stayed by the Supreme Court earlier this year till Madras High Court disposed off the Star India-Vijay TV case questioning TRAI’s jurisdiction over certain matters relating to copyrights and freedom to carry on business.

    ALSO READ:

    http://www.indiantelevision.com/regulators/high-court/orders-reserved-by-madras-hc-on-trai-jurisdiction-case-170731

    http://www.indiantelevision.com/regulators/trai/star-vijay-tv-amend-plea-trai-asked-by-madras-hc-to-file-response-170317

    http://www.indiantelevision.com/regulators/trai/trai-qos-implementation-stayed-by-delhi-hc-awaiting-madras-hc-verdict-170830

    http://www.indiantelevision.com/regulators/trai/star-trai-case-hearing-in-madras-high-court-starts-170627

  • Multiple challenges weaken Ortel numbers in second quarter

    Multiple challenges weaken Ortel numbers in second quarter

    BENGALURU: Hit by multiple challenges, Indian regional multi-system operator (MSO) Ortel Communications Ltd (Ortel) reported lower numbers and posted net loss–the second one this fiscal–for the quarter ended 30 September 2017 (Q2 FY 2017-18). The company expects the business to stabilise one year down the line.

    Ortel president and CEO Bibhu Prasad Rath explained the performance in an earnings release, “Our performance during the quarter further weakened due to multiple challenges faced by us, including severe competition in our core market, collections shortfalls, repayment of debt as well as integration issues among others.

    “Financial year 2017-18 has been a difficult year for us on all fronts and we are actively working towards restoring the business performance. We have taken many firm steps to turnaround our performance over the last few months and we expect operations to improve going forward. However, we will take one year to fully stabilise our business. In the near term, our main effort is to improve cash collections, which will help us through this difficult phase of the company. We remain committed to our B-to-C ‘last-mile’ business model and believe it will help us through this tough operating environment.”

    Declining average revenue per user (ARPUs), higher programming costs due to increase in cable TV subscribers, and higher bandwidth costs despite a lower internet subscriber base have impacted the company’s numbers.

    Despite dropping prices for the consumer due to competition with other big internet players, the company has been losing broadband subscribers. Ortel witnessed 17.6 percent year-on-year (y-o-y) decline in the broadband subscriber base between Q2 FY 2017-18 and Q2 FY 2016-17
     

  • Now, Comcast in talks to buy 21st Century Fox

    Now, Comcast in talks to buy 21st Century Fox

    According to several reports, 21st Century Fox is on the block and Philadelphia-based cable TV conglomerate Comcast is interested. Comcast has approached Fox about acquiring most of the company. Reportedly, Verizon, the biggest wireless carrier in the US, has also thrown its hat into the ring. Earlier in the month, Disney was also in talks with the Rupert Murdoch company for a possible acquisition.

    Comcast and Verizon have inquired about Fox’s movie and television studios, entertainment cable networks and international businesses. Comcast, which owns NBC Universal, would achieve global reach if it acquires Murdoch’s stake Star and Sky among other 21st Century Fox properties.

    A deal between Comcast and Fox could radically change the media landscape, consolidating some of the biggest entertainment properties in the world.

  • Workshop to train manpower in cable TV distribution

    Workshop to train manpower in cable TV distribution

    NEW DELHI: A workshop is being held on 27 November to deliberate on the importance of skilling, certification and accreditation of the manpower deployed in cable TV distribution.

    It is organised by the Broadcast Engineering Consultants (India) Ltd ( BECIL) in collaboration with the Instrumentation Automation Surveillance & Communication-Sector Skill Council (IASC-SSC in New Delhi a Vigyan Bhavan.

    Digitisation of the cable TV networks in the country has enabled availability of state-of-the-art services not only in the field of TV but also broadband access and host of value added services. HD, 4K & 8K quality TV pictures can also be provided on digital cable networks. This has provided a lot of opportunities to cable TV service providers which are not available even on DTH/ IPTV/ OTT platforms.

    However, it has also posed challenges like properly equipping and training the manpower in the field of digital technology to maintain the quality of service specified not only by the Ministry of Information and Broadcasting and the Telecom Regulatory Authority of India but also for consumer satisfaction.

    Certification of their skills for better employment opportunities and their accreditation (since the personnel visit homes during hours when most women and children are alone) are also considered important issues.

    Keeping in view the need of skilled manpower, the government embarked on Skill India Mission and a number of schemes have been initiated. IASC-SSC was created with the objective to carry out skill-gap analysis, development of qualification packs and national occupational standards and affiliation of training partners and assessment agencies, certification of trained manpower and help their placement.

    IASC-SSC is an industry-led non-profit company under the preview of Ministry of Skill Development and Entrepreneurship. The council is also certifying the existing available human resources having domain knowledge under recognition of prior learning (RPL) scheme to bring them into mainstream