ITV

Category: Cable TV

  • Punjab govt proposes law on outdoor advertising, decision to tax cable, DTH subs pending

    NEW DELHI: Not content with exploring additional local taxes on cable and DTH connections in the state of Punjab, minister Navjot Singh Sidhu now wants to bring in a policy to increase the state government’s revenue from outdoor advertising.

    Sidhu, a cricketer-turned-TV personality-turned politician who’s a minister in the Congress Party-run local government in Punjab, wants to bring a new and “potent” policy to increase the state government’s annual revenue from outdoor advertising to at least Rs 3,000 million, according to a report filed by PTI, which added that the local bodies minister blamed the previous SAD- BJP government for causing “revenue leakage” by framing a “toothless” law in this regard.

    Punjab is earning a meager amount of Rs 250 million annually from outdoor advertising and hoardings in 164 cities of the state as compared to Rs 2,000 million being earned by neighboring Haryana from its municipal areas, Sidhu told PTI.

    The flamboyant Sidhu, who also spends time on the sets of a comedy show when he’s not proposing to bring in new legislations in Punjab, told PTI that the state had suffered a loss of Rs 2,00,00 million from the cable business.

    Sidhu has proposed to levy a token amount of entertainment tax to keep a check on the “cable mafia”, which, he alleged, had “proliferated under the previous (political) dispensation”.

    He also hit out at the previous government for allegedly “looting” the state by facilitating individuals in the outdoor advertising and the cable businesses, and framing laws that benefitted “vested interests”.

    “After an inquiry, following a complaint, I came to know that the government cannot levy a penalty despite the violation of the advertisement law. They (the previous government) made toothless laws which facilitated only individuals,” PTI quoted the local minister as saying who also added that the present regime’s aim was to raise an annual revenue between Rs 250 million to Rs 3000 million from advertisements in municipal areas.

    Laws are being drafted on outdoor advertising and cable businesses in consultation with experts in order to increase the state’s revenue by 10 times, Sidhu said, adding that his department has submitted a proposal to chief minister Amrinder Singh in which a token tax of Rs 2 to Rs 3 (per cable and DTH connection) could be levied (as entertainment tax) to check malpractices in the cable TV distribution business.

    However, sources in the Punjab government told indiantelevision.com that the chief minister has not taken any decision on the proposed entertainment tax on cable and DTH connections as the levying of an additional tax over and above the recently rolled out federal government-mandated GST (goods and services tax) may complicate the tax structure. India’s finance minister Arun Jaitley, though, has clarified earlier that states can levy entertainment tax if they so wish.

    ALSO READ:

    Probe Punjab ‘cable mafia,’ demands minister, Fastway refutes charges

    Punjab govt. studying Arasu & other regulatory models on distribution 

    Retransmission law contravened: Sidhu, Fastway refutes ‘monopoly’ charge

  • Siti Networks’ operating profit more than doubles in first quarter

    BENGALURU:  The Subhash Chandra led Essel group’s television cable network company Siti Networks Limited (Siti) reported EBIDTA including other income or operating profit of Rs 1,071.65 million (28.9 percent of Total Income) for the quarter ended 30 June 2017 (Q1-18, current quarter). The company’s operating profit for the current quarter was more than double (up 2.26 times) the Rs 474.09 million (16.5 percent of Total Income) the company had reported for the corresponding year ago quarter (y-o-y) and 54.2 percent higher than the Rs 694.88 million (20.6 percent of Total Income) reported for the immediate trailing quarter Q4-17 (q-o-q).

    Consequently, the company reported a lower total comprehensible loss in the current quarter at Rs 151.32 million, which was a little less than one third (1/2.87 times) the total comprehensible loss of Rs 435.26 million in Q1-17 and less than a fourth (1/4.26 times) the total comprehensible loss of Rs 647.16 million in Q4-17.

    Siti’s total income for Q1-18 was 29.4 percent higher y-o-y at Rs 3,711.13 million as compared to Rs 2,868.82 and 10.1 percent higher q-o-q as compared to Rs 3,370.46 million. Revenue from operations increased 29.4 percent y-o-y to Rs 3,649.57 million from Rs 2,819.67 million and increased 12.1 percent q-o-q from Rs 3,255.18 million.

    Breakup of revenue

    Siti’s subscription revenue in the current quarter increased 34.6 percent y-o-y to Rs 1,700 million from Rs 1,263 million and increased 6.3 percent q-o-q from Rs 1,600 million. Carriage revenue in the current quarter increased 6.3 percent y-o-y to Rs 765 million from Rs 720 million, but declined 4.1 percent q-o-q from Rs 798 million. Activation revenue in Q1-18 more than doubled (increased 2.32 times) y-o-y to Rs 849 million from Rs 366 million and was 75.4 percent more q-o-q than Rs 484 million. Broadband internet revenue for Q1-18 increased 32.3 percent y-o-y to Rs 258 million from Rs 195 million, but declined 3 percent q-o-q from Rs 266 million.

    Subscription numbers

    The company says that it deployed more than 1.6 million set top boxes during the quarter in West Bengal, Haryana, Andhra Pradesh and Telengana, primarily in Phase 4 areas. It says that its digital video base was about 11.6 million at the exit of June 2017 and that prepaid migration is on track with 1.16 million subscribers across 134 locations brought under its ambit by August 2017. Siti says that during the year 0.05 million of its customers adopted HD services taking the total HD customer base to 0.22 million by exit Q1-18.

    Siti’s broadband internet subscriber base increased by approximately 12,000 to 0.24 million in Q1-18 from 0.228 million in the immediate trailing quarter. The company says that as a strategy it increased focus on higher ‘Lock-in’ broadband internet plans in Q1-18. About 40 percent of its acquisitions are now coming on longer duration plans. Siti says that it is targeting to take this figure to over 50 percent in Q2-18.

    Company speak

    Siti executive director Sidharth Balakrishna said, ““SITI continues to hold a strong position in the market with record customer additions.We are well positioned to monetize this base from Q2 onwards and maintain a strong growth trajectory. In Broadband, we will selectively expand our offerings and drive increased customer focus. We are also making significant efforts to strengthen processes and optimise costs going forward, while also enhancing customer offerings. This along with a focus on certain revenue streams could potentially provide upsides going forward”

    Let us look at the other numbers reported by Siti

    Consolidated Total Expenditure increased 14.1 percent y-o-y to Rs 3,696.52 million (99.6 percent of Total Income) in Q1-16 from Rs 3,238.75 million (112.9 percent of Total Income) in Q1-18 and increased 0.4 percent q-o-q from Rs 3.680.87 million (109.2 percent of Total Income).

    Consolidated Employee Benefit Expense increased 22.6 percent y-o-y to Rs 234.46 million (6.3 percent of Total Income) in the current quarter from Rs 191.22 million (6.7 percent of Total Income) million but declined 3.9 percent q-o-q from Rs 243.97 million (7.2 percent of Total Income).

    Consolidated Carriage sharing, pay channel and related costs in Q1-18 increased 5.1 percent y-o-y to Rs 1,560.55 million (42.1 percent of Total Income) from Rs 1,484.36.36 million (51.7 percent of Total Income) but declined 3 percent q-o-q from Rs 1,608/94 million (47.7 percent of Total Income).

    Consolidated Finance costs in the current quarter increased 11.6 percent y-o-y to Rs 331.03 million (8.9 percent of Total Income) from Rs 296.71 million (10.3 percent of Total Income), but declined 2.1 percent q-o-q from Rs 338..02 million (10 percent of Total Income).

    Consolidated Other expenses increased 30.7 percent y-o-y to Rs 841.78 million (22.7 percent of Total Income) in Q1-18 from Rs 643.83 million (22.4 percent of Total Income) and increased 11.2 percent q-o-q from Rs 757.12 million (22.5 percent of Total Income).

    Also Read :

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  • Hinduja Ventures PAT rises marginally Q1FY18, Nxt Digital HITS 640 districts

    NEW DELHI: Hinduja Ventures Ltd (HVL)  on Thursday announced  standalone net profit after tax of Rs. 255 million for three months ended 30 June 2017 as against Rs. 242.1 million during the same period a period ago.. The net PAT for the period ended grew by 5.33 per cent.

    The total income for the period under review stood at Rs. 506.6 million as against Rs. 619.1 million for the same period a year ago.

    The board of HVL at its meeting held on 10 August 2017 approved un-audited standalone financial results for the quarter ended 30 June 2017.

    HVL is the holding company of big Indian integrated media entities comprising MSO IndusInd Media & Communications Limited (IMCL) and Grant Investrade Limited (GIL) that has launched the HITS digital platform under brand name NXT Digital.

    The company in a statement claimed the HITS platform is making good progress in its expansion plans in the rural markets. The services, being now provided in all the states of the country and 640 districts, are available in more than 1,000 locations. The company claimed that GIL has also been successful in getting more than 97 per cent of its operators/customers on a pre-paid payment mode.

    According to HVL, IMCL is continuing to consolidate its position in phase I and II markets on its own, while its joint ventures too were progressing well. As part of cost rationalisation and improvement in efficiency, IMCL has outsourced the management of its extensive fibre network so that it gets optimized in a focused way.

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  • GTPL Hathway reports higher numbers and flat q-o-q ARPUs

    BENGALURU: After declaring a maiden 10 percent dividend for the previous fiscal, Indian Multi-System Operator (MSO) and Broadband Internet Services (broadband) provider GTPL Hathway Limited has reported a year-over-year growth in standalone CATV total income of 25 percent for the quarter ended 30 June 2017 (Q1-18, current quarter). Quarter-on-quarter (q-o-q), standalone CATV total income however declined 5 percent on lower other income. The company’s Average Revenue per User (ARPU, net of taxes) was almost flat q-o-q across all the four DAS phases I, II, III and IV at Rs 100, 95, 54 and 40 respectively, except that in Q4-17, DAS phase IV ARPU reported by the company was slightly higher at Rs 41. GTPL Hathway reported CATV total income of Rs 1,782 million, Rs 1,884 million and Rs 1,423 million for Q1-18, Q4-17 and Q1-17 respectively.

    The company’s has two subsidiaries – GTPL Broadband Private Limited a 100 percent subsidiary of GTPL Hathway and GTPL Kolkata      Cable and Broadband Pariseva Limited (KCBPL) in which GTPL Hathway has a 51 percent stake.

    Both the subsidiaries along with GTPL Hathway (standalone)     contributed approximately 90 percent of revenue in consolidated accounts of financial year 2016-2017. The two subsidiaries also reported a healthy growth in numbers.

    GTPL Hathway managing director Anirudhasinhji Jadeja said, “After posting 33 percent growth in CATV subscription revenue and 77 percent growth in broadband subscription revenue, GTPL Hathway continued the growth momentum well into the first quarter of fiscal 2018. The monetisation of phase III and phase IV kicked off. Further, at GTPL we are continuously upgrading our technology to offer the best in class output to our subscribers. We have deployed the next generation video headend system Harmonic Inc., USA which will enable us to offer up to 650 cable TV channels and 50 OTT channels.”

    GTPL standalone EBIDTA for the current quarter increased 29 percent y-o-y to Rs 570 million (32 percent margin) from Rs 443 million (31 percent margin), but declined 10 percent q-o-q from Rs 637 million (34 percent margin). Standalone profit after tax (PAT) increased 86 percent y-o-y to Rs 148 million from Rs 79,4 million, but declined 26 percent q-o-q from Rs 201 million.

    GTPL standalone subscription revenue increased 19 percent y-o-y in Q1-18 to Rs 903 million from Rs 757 million and increased 7 percent q-o-q from Rs 842 million. Standalone placement revenue in the current quarter increased 17 percent y-o-y to Rs 578 million from Rs 493 million and increased 2 percent q-o-q from Rs 567 million. Activation revenue in Q1-18 increased 34 percent y-o-y to Rs 176 million from Rs 136 million and increased 3 percent q-o-q from Rs 171 million. Other income in the current quarter almost tripled (2.98 times) y-o-y to Rs 125 million from Rs 42 million, but was less than half (declined 59 percent) q-o-q as compared to Rs 304 million in Q4-17.

    GTPL standalone total expenditure increased 24 percent y-o-y in Q1-18 to Rs 1,211 million from Rs 980 million, but declined 3 percent q-o-q from Rs 1,247 million. Pay channel cost in Q1-18 increased 28 percent y-o-y to Rs 798 million from Rs 622 million, but declined 2 percent q-o-q from Rs 815 million.

    GTPL standalone employee cost in the current quarter increased 15 percent y-o-y to Rs 116 million from Rs 101 million and declined 11 percent q-o-q from Rs 130 million.  Standalone administrative expense in Q1-18 increased 17 percent y-o-y to Rs 174 million from Rs 149 million but declined 2 percent q-o-q from Rs 177 million. Standalone other operating expense in the current quarter increased 14 percent y-o-y to Rs 123 million from Rs 108 million and was almost flat q-o-q as compared to Rs 124 million.

    The company says that it has seeded 0.86 million set top boxes in the current quarter and increased its active digital subscribers by 0.71 million. So far until 30 June it has seeded 7.76 million STBs’ and it has 6.69 million active STBs’. Phase-wise, GTPL Hathway says that it has completed seeding of 0.72 million, 2.23 million, 2.53 million and 2.28 million STBs’ in DAS phases I, II, III and IV respectively until 30 June 2017.

    KCBPL total income in the current quarter increased 12 percent y-o-y to Rs 325 million from Rs 290 million and increased 5 percent q-o-q from Rs 310 million. KCBPL EBIDTA in Q1-18 declined 23 percent y-o-y to Rs 63 million from Rs 81 million and increased 7 percent q-o-q from Rs 59 million. KCBPL reported loss of Rs 13 million as compared to a profit of Rs 8 million in the corresponding year ago quarter and a lower loss of Rs 7 million in the immediate trailing quarter Q4-17.

    GTPL Broadband total income increased 25 percent y-o-y to Rs 318 million from Rs 254 million and increased 4 percent q-o-q from Rs 304 million. GTPL Broadband EBITDA in Q1-18 increased 65 percent y-o-y to Rs 84 million from Rs 51 million and increased 9 percent q-o-q from Rs 77 million. GTPL Broadband PAT almost doubled (went up by 95 percent) to Rs 37 million from Rs 19 million and increased 10 percent q-o-q from Rs 34 million.

    GTPL Broadband subscriber base increased to 0.25 million in Q1-18 as compared to 0.19 million in Q1-17 and 0.24 million in Q4-17. Broadband ARPU increased to Rs 486 in Q1-18 as compared to Rs 455 in the corresponding year ago quarter Rs 480 in the immediate trailing quarter.

    Also Read:

    GTPL Hathway declares maiden dividend on higher numbers for FY-17

    GTPL boosts channels & OTT with Harmonic, can deliver to 8 mn homes

    GTPL Hathway allots Rs. 1450 mn to anchor investors, IPO opens today

  • Godfather, Kal, Digi Cable & Intermedia licence cancellation stayed, 50 ‘pan-India’ MSOs’ op area changed

    NEW DELHI: After a spurt till mid-June, the rise in the number of multi-system operators has shown a mild increase of 34 registrations taking the total of registered MSOs to 1455. Early this year, the government had said all provisional multi-system operators will be deemed as having regular licence.

    A separate list has been issued mentioning the Tamil Nadu Arasu TV Corporation whose area will be confined to Tamil Nadu, and Godfather Communication where it states the areas of operation is Punjab, Haryana, Jammu & Kashmir, Rajasthan, Chandigarh and Himachal Pradesh. However, the registration shall be subject to the final court order in a writ filed in Punjab and Haryana High Court against the ministry’s order of 29 September 2013.

    There is a third list of 63 MSOs licences of which were cancelled or cases closed. This includes Godfather and Kal Cable of Chennai, Digi Cable Network (India) and Intermedia Cable Communication of Delhi where cancellation of registration was stayed by respective high courts.

    The area of operation of around 50 MSOs has been changed despite an order earlier this year that all MSOs were free to operate pan-India  to speed up digital addressable system.

    Faced with just less than a month before total switch-off of analogue signals, the government had, on 6 March 2017, decided to treat all MSOs as permanent but with the condition that the period of 10 years commences from the date they got registered as provisional MSOs.

    However, if the continuation of registration of any MSO at any time is found to be or considered detrimental to the security of the state, then the registration so granted is liable to be cancelled/suspended, the order placed on the ministry’s website specified. All other terms and conditions shown in the provisional registration letters will continue to apply.

    Earlier, on 27 January 2017, it had been decided that all registered MSOs are free to operate in any part of the country, irrespective of registration for specified DAS notified areas granted by this ministry. However, they have to submit the details of the headend, SMS, subscribers’ list and a self-certificate that they are carrying all the mandatory TV channels, within six months from the date of issuance of MSO registration, to the ministry, failing which the MSO registration is liable to cancelled/suspended.

    Hence, all deemed regular registered MSOs also are required to submit the details to the ministry within six months.

    The Tamil Nadu-Government-run TACTV was granted provisional licence on 18 April 2017 to operate as an MSO in the state on the condition that it switches off analogue signals in the entire state within three months, which has now been extended to 17 August 2017.

    The Ministry had then told indiantelevision.com that it had been made clear that the provisional licence was subject to the Centre taking a final decision on the recommendation of the Telecom Regulatory Authority of India that no government owned body should be permitted in the field of running or distributing television channels.  TRAI had in 2008, 2012 and 2014 held that state governments and political parties should not be permitted to own TV channels or distribution channels.

    In Tamil Nadu where there is a court stay in operation since Phase I, TACTV had warned MSOs and LCOs against switching off analogue signals anywhere in the state after 31 March 2017.

    Sources said that Arasu had been granted provisional licence in 2006 at the time of the Conditional Access System on certain conditions based on the TRAI report but this had not been renewed when Digital Addressable System came into force.

    Also read:

    37 new MSOs in 45 days takes total to 1421, seven among 59 cases sub-judice

    Arasu gets provisional MSO licence subject to analogue switch-off in three months

    Including Arasu, total number of MSOs goes up to 1376, to ensure DAS implementation

    Punjab govt. studying Arasu & other regulatory models on distribution 

  • Retransmission law contravened: Sidhu, Fastway refutes ‘monopoly’ charge

    MUMBAI Punjab minister Navjot Singh Sidhu intends to bring an ordinance for auditing the tax the previous government collected from cable operators. Putting the chief minister Capt Amarinder Singh in a fix, Sidhu has asked him to decide on recovering the ‘tax evaded’ by the MSO — Fastway Cable Network.

    The Punjab Government, he said, was committed to break the monopoly situation and to have a level playing field in cable TV industry.

    In the Indian states where there is competition among MSOs, Sidhu said, rates being charged from LCOs (local cable operators) are Rs 75 in Rajasthan, Rs 60 in UP, and a whopping Rs 130 in Punjab. It was being done without any legal agreement and without raising any invoices, whereby LCOs had no option but deposit the same — which is in contravention of the law of retransmission of cable TV signals. By creating the monopoly, Sidhu said, MSOs have an unequal bargaining power with the broadcasters but extracting huge carriage/placement revenue from the broadcasters.

    Sidhu said that he would procure a GPR (ground penetrating radar) to assess where cabled had been laid and whether the operator had paid due taxes. Since the subject related to excise and taxation is under the CM, he said, the matter would have to be taken to Singh and the cabinet.

    In 1995, Sidhu said, the entertainment tax in Punjab was Rs 50 per television set. But, the Badal government amended the provisions to keep Fastway out of tax net and imposed a tiny tax of Rs 15,000 per annum. A Fastway release later stated that the Supreme Court lawyer Vineet Bhagat (Sidhu’s advisor) was defeated by Fastway in several cases, and hence he had twisted the facts and presented figures to show the MSO in a poor light.

    Calculating the impact of the loss to the state exchequer by taking into account a conservative figure of 40 lakh Fastway connections (as stated in 2012 Competition Commission of India report, it would come to (40 lakh x 50 x 12 x 6) Rs 14.4 billion, the minister alleged. Sidhu said the actual figure could go up to Rs 200 billion. Despite having over 80 lakh connections today, Sidhu said, Fastway had grossly under-declared its connections at around 24 lakh to TRAI, continuing to short-change the regulator and the government.

    Refuting, Fastway CEO Peeush Mahajan said his company had no monopoly as Godfather Cable, Hinduja and MC Transmissions were operating in the state. Punjab had six DTH companies as well, he said.  Fastway, he said, had a tamper-proof system and it has been audited by broadcasters and the central government agency BECL (Broadcasting Engineering Corporation of India Limited).

    ALSO READ :

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  • GTPL Hathway declares maiden dividend on higher numbers for FY-17

    BENGALURU: Indian multi-system operator GTPL Hathway declared a maiden dividend of ten percent for the year ended 31 March 2017 (FY-17, current year) per equity share of face value of Rs 10. The company was listed on the bourses on 4 July 2017 after the conclusion of a Rs 4,850 initial public offering (IPO) that was oversubscribed by 1.53 times in the third week of June 2017.

    GTPL reported 26.5 percent growth in Total Income to Rs 9,417.40 million in FY-17 from Rs 7,442.84 million in FY-16. Net Profit after tax (PAT) increased by more than seven times to Rs 262.42 million in the current fiscal from Rs 36.93 million in the previous year. Total comprehensive income also increased almost seven-fold to Rs 259.79 million from Rs 38.58 million. EBIDTA including other income in FY-17 increased 50.7 percent to Rs 2,077.33 million from Rs 1,595.93 million in the previous fiscal. Earnings per share increased by about 5.5 times in fiscal 2017 to Rs 4.10 from Rs 0.75 in the previous year.

    The company in its investor presentation says that cable TV subscription revenue grew 33 percent to Rs 4,494 million in FY-17 as compared to the Rs 3378 million during the previous fiscal. Cable TV Average Revenue per User (ARPU, net of taxes) in phases I, II, III and IV was Rs 100, 95, 54 and 41 respectively. Active set top boxes in FY-17 went up to 5.98 million, while the number of set top boxes seeded until 31 March 2017 was 6.90 million.

    Broadband revenue grew 77 percent to Rs 1,288 million from Rs 730 million during the same period. Broadband revenue’s contribution to overall revenue increased 4 percent, and the company says that broadband Broadband revenue grew 77 percent to Rs 1,288 million from Rs 730 million during the same period. Broadband ARPU increased 5.5 percent in FY-17 to Rs 480 from Rs 455 in the previous fiscal. GTPL Hathway claims to have seeded 1.48 million set top boxes in fiscal 2017.

    Let us look at the other numbers reported by GTPL Hathway

    Total expenses increased 20 percent to Rs 7,013 million in FY-17 from Rs 5,847 million in FY-16. Pay channel cost increased 17 percent to Rs 3,821 million from Rs 3,277 million in the previous fiscal. Bandwidth expense increased 78 percent in FY-17 to Rs 422 million from Rs 237 million in Fy-16.

    Employee cost increased 34 percent to Rs 1,084 million from Rs 808 million. Other operating expense reduced 23 percent to Rs 471 million from Rs 612 million. Administrative expense in FY-17 increased 33 percent to Rs 1,215 million from Rs 913 million.

    Also Read:

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  • Den improves Q1-18 numbers, betters ARPB, net loss down

    BENGALURU / NEW DELHI: Indian multi-system operator (MSO) Den Network Limited (DEN) reported 38 per cent year-over-year increase in cable revenue at Rs 1,540 million for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to Rs 1,110 million for the corresponding quarter of the previous fiscal (Q1-17).

    Cable business reported post activation operating profit (EBIDTA) of Rs 850 million and pre-activation operating profit of Rs 490 million for the current quarter. Corresponding IND-AS EBIDTA numbers for the year ago quarter were Rs 500 million and Rs 150 million respectively. (Some numbers in this report have been rounded off).

    The company reported an overall higher y-o-y Average Revenue Per Box (ARPB) at Rs 74 in the current quarter as compared to Rs 52 in the corresponding year ago quarter. ARPB across all the four DAS phases was up, with DAS IV ARPB more than tripling to Rs 38 in the current quarter as compared to Rs 12 in Q1-17. DAS phase III ARPB increased to Rs 59 in Q1-18 as compared to Rs 36, DAS II ARPB increased from Rs 73 in Q-17 to Rs 91 in Q1-18, while DAS IV ARPB increased to Rs 110 in Q1-18 from Rs 101 in Q1-17

    Quarter-over-quarter APRB however was slightly lower. For the quarter ended 31 March 2017 (Q4-17) DEN had reported ARPB of Rs 76, with ARPB of Rs 117, Rs 85, Rs 62 and Rs 46 for DAS phases I, II, III and IV respectivley. Only DAS Phase II ARPB has increased in Q1-18 as compared to the immediate trailing quarter.

    Den Networks CEO SN Sharma said, “Den turned another quarter of impressive results by registering a stupendous performance on cable business. We remain focused on consumer needs and continue to take technology initiatives that will help our consumers make their lives convenient and connected. On the basis of IGAAP numbers, Den has broken even at the PNT level and the cable business has turned positive at the PAT level. We continue to add subscribers to our broadband business. The average data consumption for broadband business has already crossed 75 GB per month. We are very hopeful to continue this performance and are eagerly awaiting the the final verdict on the new TRAI tarriff order from the industry standpoint.”

    Overall, Den has reported y-o-y growth across all its revenue streams – whether considereed on the basis of cable business, broadband business, other income, or considered on the basis of subscription income, placement revenue and other income.

    The company says that it has deployed about 0.3 million boxes in the first quarter of fiscal 2018 in DAS phase III and IV areas and claims a digital subscriber base of about 10.7 million as on 30 June 2017.

    Broadband business revenue in the current quarter increased to Rs 211.9 million from Rs 177.9 million. Broadband business EBIDTA reduced to a loss of Rs 82.6 million versus a loss of Rs 142.6 million in the corresponding quarter of the previous year.

    Overall, Den Networks total income increased 15.75 per cent in Q1-18 to Rs 3,224.2 million from Rs 2,785.5 million in the corresponding quarter of the previous fiscal. Overall consolidated EBIDTA increased 31.2 per cent y-o-y in Q-16 to Rs 694 million as compared to Rs 52.9 million. The company narrowed consolidated net loss to Rs 101.1 million for the quarter led by a good performance from the cable segment.

    In the immediate trailing quarter, the company had said that it had focused largely on cash collections during the year which had brought down the net debt of the company to Rs. 1810 million as at March 31, 2017, thereby deleveraging its balance sheet. The net debt of the company has been further reduced to Rs 1340 million as on 30 June 2017.

    Let us look at the other numbers reported by Den Network

    Den’s total expenses in Q1-18 increased 5.2 per cent y-o-y to Rs 3,305.1 million from Rs 3,142.3 million in Q1-17. Content Costs in Q1-18 increased 16.3 per cent y-o-y Rs 1,307.7 million from Rs 1,124.7 million. Placement fees costs in Q1-18 reduced 5.8 per cent y-o-y to Rs 101.3 million from Rs 107.5 million in Q1-17.

    Employee Benefits Expense in Q1-18 increased 25.5 per cent to Rs 317.4 million from Rs 253 million in the corresponding quarter of the previous year. Other Expenses in the first quarter of fiscal 2018 increased 4.2 per cent to Rs 803.8 million from Rs 771.2 million in Q1-17.

  • Punjab Govt falters in first leg of breaking cable monopoly

    MUMBAI: Even as the Punjab government recently vowed to break the cable monopoly, the Municipal Corporation Bathinda (MCB) has been unsuccessful in completing its door-to-door cable survey in the city. As per the orders of the Local Bodies Department, the MCB was scheduled to complete its survey by 31 July, and submit its report to the department.

    After receiving instructions from the local bodies minister Navjot Singh Sidhu to start a grassroots-level investigation against Fastway Cable, the MCB had sent officials of the rank of JE and SDO to conduct a door-to-door survey in the Bathinda, Tribune reported.

    Even though the Congress government in Punjab made it clear it would not tolerate monopoly in information and news distribution via cable TV, the state government clarified no particular MSO company or TV channel would be targeted and action would be taken if found guilty of tax law violations.

    Sidhu had alleged that Fastway had caused a loss of around Rs 6840 million to the state exchequer. The state government had ordered a tax evasion notice to be slapped on Fastway. Sidhu also demanded a separate investigation into the alleged under-reporting of TV connections and cable operators engaged by Fastway. Of over 8,000 cable operators in the state, 6,500 were working for Fastway, he alleged.

    MSO Fastway, which holds sway in Punjab resulting virtually in a monopoly, is allegedly owned and operated by close aides of former Punjab chief minister’s family — the Badals. The decade-old MSO company also has sizable presence in neighbouring states of Himachal Pradesh, Haryana and Union territory of Chandigarh. In an official statement, the present CM Captain Amarinder Singh made it clear that action would be taken against media companies if charges of tax violations are proved to be correct.

    Around 70 Bathinda officials were deputed for the survey. In the city, these officials were to collect information of cable network from around 70,000 households. After this survey, Sidhu planned to impose entertainment tax on cable network because, as per the Municipal Act, 1976, his department had the right to collect the tax. The Union Government had kept the cable business out of the GST. As per MCB record of the last 10 years, Fastway had not paid requisite charges for using poles. After the earlier record, many new connections and areas had increased manifold.

    MCB commissioner Sanyam Aggarwal admitted that he did not know how much survey work had been completed.

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  • Rajan Gupta replaces T S Panesar as new AIDCF President

    NEW DELHI: Hathway Cable & Datacom Limited MD and chairman & non-ED of GTPL Hathway Limited Rajan Gupta has been appointed president of the All India Digital Cable Federation (AIDCF), the apex body of digital cable television companies..

    This change has been made as Hathway Digital Pvt. Ltd CEO video business TS Panesar, the former AIDCF president, resigned from his post at Hathway some time back.

    While giving his exit statement, Panesar said, “I am resigning from the board and president’s role at AIDCF as I have put in my papers at Hathway. During my short stint at AIDCF, the federation has added new members, all of whom are regional leaders in their respective markets. Their presence will certainly help the federation in raising regional issues. I also hope that TRAI’s new regulations will become a reality soon.”

    Gupta, in a statement, said, “I am delighted to accept the president’s role at AIDCF. Digitalization journey for cable TV is almost over and focus will now shift to monetizing STBs seeded in the last few years. The Next phase of growth in the cable TV industry will come through convergence and innovative value-added services. I look forward to collaborating with all national and regional MSOs for maximizing industry revenue and profitability.”

    AIDCF secretary-general Saharsh Damani said, “With digitization almost over, I am certain that under Mr Gupta’s leadership AIDCF members will chalk-out a robust path in giving dual and triple play services to the end consumers.”

    Gupta, an engineering graduate and an MBA from IIM Bangalore, has 20 years of diverse experience across various aspects of management, sales, marketing, P&L management, revenue growth management, go-to-market strategy, business turn around and manufacturing operations across different regions of India.

    Prior to joining Hathway, he has held various leadership positions with Tata Teleservices, Hindustan Coca Cola and Asian Paints.

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