Category: Cable TV

Comcast to launch wireless service using Verizon

MUMBAI: Here is good news for all Comcast subscribers. The US cable giant’s chief executive Brian Roberts has announced the launch of a wireless service by mid-2017. It plans to create a service that would run on its 15 million WiFi hotspots and use Verizon’s wireless network through a deal struck in 2011. Under that deal, a consortium of cable companies led by Comcast sold nationwide spectrum licenses to Verizon for $3.6 billion and secured wireless-resale rights.

This new business line will in-turn help the company to better retain its cable customers in the pay-TV market.

Roberts said that they believed there would be a big payback with reduced churn, more stickiness and better satisfaction. Comcast would market the wireless service inside their footprint, to existing and potential Comcast cable customers, as opposed to nationwide. The company was interested in up-selling customers to a bigger bundle of services.

Roberts also introduced Comcast’s newly integrated Netflix experience on its next-generation X1 set-top box and guide. It is in discussions with several other video streaming providers to integrate their services into the X1 box.

Over the past several years, Comcast has been replacing its cable customers’ routers with new ones doubling as public Wi-Fi hotspots. It is also among the potential bidders for wireless airwaves in a current federal auction. With this move, Comcast is trying to be the first successful cable mobile virtual network operator (MVNO), a concept pioneered by Virgin Mobile UK in 1999.

September 22, 2016
Comcast to launch wireless service using Verizon

MUMBAI: Here is good news for all Comcast subscribers. The US cable giant’s chief executive Brian Roberts has announced the launch of a wireless service by mid-2017. It plans to create a service that would run on its 15 million WiFi hotspots and use Verizon’s wireless network through a deal struck in 2011. Under that deal, a consortium of cable companies led by Comcast sold nationwide spectrum licenses to Verizon for $3.6 billion and secured wireless-resale rights.

This new business line will in-turn help the company to better retain its cable customers in the pay-TV market.

Roberts said that they believed there would be a big payback with reduced churn, more stickiness and better satisfaction. Comcast would market the wireless service inside their footprint, to existing and potential Comcast cable customers, as opposed to nationwide. The company was interested in up-selling customers to a bigger bundle of services.

Roberts also introduced Comcast’s newly integrated Netflix experience on its next-generation X1 set-top box and guide. It is in discussions with several other video streaming providers to integrate their services into the X1 box.

Over the past several years, Comcast has been replacing its cable customers’ routers with new ones doubling as public Wi-Fi hotspots. It is also among the potential bidders for wireless airwaves in a current federal auction. With this move, Comcast is trying to be the first successful cable mobile virtual network operator (MVNO), a concept pioneered by Virgin Mobile UK in 1999.

September 22, 2016
Hathway Bhawani CEO Samson Jesudas quits

MUMBAI: Hathway Bhawani Cabletel & Datacom managing director and chief executive officer Samson Jesudas has resigned. The company today informed the Bombay Stock Exchange (BSE) that Jesudas has tendered his resignation with effect from 21 September. Hathway Bhawani is a joint venture between Hathway and Bhawani Cable.

Earlier, he worked as the chief marketing and distribution officer at Indusind Media & Communication Ltd for two years. Then, Jesudas was appointed as the head of operations at Hathway Cable and Datacom, before joining as the CEO of Hathway Bhawani Cable and Datacom.

September 21, 2016
Hathway Bhawani CEO Samson Jesudas quits

MUMBAI: Hathway Bhawani Cabletel & Datacom managing director and chief executive officer Samson Jesudas has resigned. The company today informed the Bombay Stock Exchange (BSE) that Jesudas has tendered his resignation with effect from 21 September. Hathway Bhawani is a joint venture between Hathway and Bhawani Cable.

Earlier, he worked as the chief marketing and distribution officer at Indusind Media & Communication Ltd for two years. Then, Jesudas was appointed as the head of operations at Hathway Cable and Datacom, before joining as the CEO of Hathway Bhawani Cable and Datacom.

September 21, 2016
Den Networks consolidated cable, broadband numbers up in Q1-17

BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue post activation increased 9 percent in in the quarter ended 30 June 2016 (Q1-17, current quarter) to Rs 251 crore from Rs 230 crore in Q1-16. Pre-activation revenue in the current quarter increased 3 percent to Rs 215 crore from Rs 209 crore in the corresponding year ago quarter.

Two segments contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband segment (Boomband).

Den’s Broadband segment revenue more than tripled (3.55 times) in Q1-17 to Rs 18 crore from Rs 5 crore in Q1-16.

Cable segment

Cable subscription revenue increased 13.3 percent y-o-y to Rs 111 crore in Q1-17 from Rs 98 crore in Q1-16. Cable activation revenue increased 69 percent y-o-y to Rs 36 crore from Rs 21 crore. Placement revenue declined 15 percent y-o-y to Rs 87 crore from Rs 102 crore.

Cable segment reported EBIDTA of Rs 53 crore in Q1-17 as against and EBIDTA of Rs 14 crore in the corresponding quarter of the previous year. Please refer to the figure below for Den’s revenue break-up for Q1-7 and Q1-16.

The company reported 98 lakh DAS subscribers for Q1-17, as compared to 72 lakh in the corresponding year ago quarter and 94 lakh in the immediate trailing quarter (Q4-16). Den has a cable subscriber base of 1.3 crore.

Broadband segment

Den reported 329 percent growth in broadband customers in Q1-17 as compared to the corresponding year ago quarter Q1-16. Den reported 1,15,000 broadband customers in the current quarter as compared to 35,000 in Q1-16.

In Q4-16 Den had a broadband subscriber base of about 95,000, hence quarter-over-quarter (q-o-q) broadband subscriber base growth in Q1-17 was 21 percent. Q-o-q broadband revenue increased 20 percent in the current quarter from Rs 15 crore in Q4-16.

Broadband segment’s operating loss (EBIDTA) in Q1-17 was lower at Rs 9 crore as compared to an operating loss of Rs 18 crore in Q1-16.

Consolidated numbers

Den’s consolidated revenue increased 14 percent year-over-year (y-o-y) in the current quarter to Rs 269 crore from Rs 236 crore in Q1-16.

Consolidated loss before tax in Q1-17 was lower at Rs 35 crore as compared to a loss of Rs 48 crore in Q1-16. Net loss in Q1-17 was slightly higher at Rs 52 crore as compared to a net loss of Rs 50 crore in Q1-16.

The company reported positive post activation consolidated EBIDTA of Rs 44 crore for the current quarter as against a negative (operating loss) of Rs 4 crore in Q1-16.

Den’s consolidated total expenditure in the current quarter declined 6.3 percent to Rs 225 crore from Rs 240 crore in Q1-16.

Content costs are a major component of Den’s expenditure – Content costs in the current quarter declined 7.4 percent in the current quarter to Rs 112 crore from Rs 121 crore in the corresponding year ago quarter.

Employee (Personnel) costs declined 19.4 percent in the current quarter to Rs 25 crore from Rs 31 crore in Q1-16. Other operating expenses in Q1-17 increased 2.5 percent to Rs 81 crore from Rs 79 crore.

Goldman Sachs to pick up 1.58 crore Den equity shares

As reported, the company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore.

Note: (1) All numbers mentioned are consolidated unless stated otherwise.

(1.1) The figures mentioned above have been rounded off and based on the numbers presented by Den in the public domain.

(2) The numbers in this paper are as per Indian Accounting System. (Ind AS)

(3) The unit of currency in this report is the Indian rupee – Rs (also conventionally

represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

September 21, 2016
Den Networks consolidated cable, broadband numbers up in Q1-17

BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue post activation increased 9 percent in in the quarter ended 30 June 2016 (Q1-17, current quarter) to Rs 251 crore from Rs 230 crore in Q1-16. Pre-activation revenue in the current quarter increased 3 percent to Rs 215 crore from Rs 209 crore in the corresponding year ago quarter.

Two segments contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband segment (Boomband).

Den’s Broadband segment revenue more than tripled (3.55 times) in Q1-17 to Rs 18 crore from Rs 5 crore in Q1-16.

Cable segment

Cable subscription revenue increased 13.3 percent y-o-y to Rs 111 crore in Q1-17 from Rs 98 crore in Q1-16. Cable activation revenue increased 69 percent y-o-y to Rs 36 crore from Rs 21 crore. Placement revenue declined 15 percent y-o-y to Rs 87 crore from Rs 102 crore.

Cable segment reported EBIDTA of Rs 53 crore in Q1-17 as against and EBIDTA of Rs 14 crore in the corresponding quarter of the previous year. Please refer to the figure below for Den’s revenue break-up for Q1-7 and Q1-16.

The company reported 98 lakh DAS subscribers for Q1-17, as compared to 72 lakh in the corresponding year ago quarter and 94 lakh in the immediate trailing quarter (Q4-16). Den has a cable subscriber base of 1.3 crore.

Broadband segment

Den reported 329 percent growth in broadband customers in Q1-17 as compared to the corresponding year ago quarter Q1-16. Den reported 1,15,000 broadband customers in the current quarter as compared to 35,000 in Q1-16.

In Q4-16 Den had a broadband subscriber base of about 95,000, hence quarter-over-quarter (q-o-q) broadband subscriber base growth in Q1-17 was 21 percent. Q-o-q broadband revenue increased 20 percent in the current quarter from Rs 15 crore in Q4-16.

Broadband segment’s operating loss (EBIDTA) in Q1-17 was lower at Rs 9 crore as compared to an operating loss of Rs 18 crore in Q1-16.

Consolidated numbers

Den’s consolidated revenue increased 14 percent year-over-year (y-o-y) in the current quarter to Rs 269 crore from Rs 236 crore in Q1-16.

Consolidated loss before tax in Q1-17 was lower at Rs 35 crore as compared to a loss of Rs 48 crore in Q1-16. Net loss in Q1-17 was slightly higher at Rs 52 crore as compared to a net loss of Rs 50 crore in Q1-16.

The company reported positive post activation consolidated EBIDTA of Rs 44 crore for the current quarter as against a negative (operating loss) of Rs 4 crore in Q1-16.

Den’s consolidated total expenditure in the current quarter declined 6.3 percent to Rs 225 crore from Rs 240 crore in Q1-16.

Content costs are a major component of Den’s expenditure – Content costs in the current quarter declined 7.4 percent in the current quarter to Rs 112 crore from Rs 121 crore in the corresponding year ago quarter.

Employee (Personnel) costs declined 19.4 percent in the current quarter to Rs 25 crore from Rs 31 crore in Q1-16. Other operating expenses in Q1-17 increased 2.5 percent to Rs 81 crore from Rs 79 crore.

Goldman Sachs to pick up 1.58 crore Den equity shares

As reported, the company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore.

Note: (1) All numbers mentioned are consolidated unless stated otherwise.

(1.1) The figures mentioned above have been rounded off and based on the numbers presented by Den in the public domain.

(2) The numbers in this paper are as per Indian Accounting System. (Ind AS)

(3) The unit of currency in this report is the Indian rupee – Rs (also conventionally

represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

September 21, 2016
Goldman Sachs to up stake in cable TV MSO DEN Networks; to invest Rs 142.43 crore

MUMBAI: MSO DEN Networks has proved the naysayers – who have been carping that the Indian cable TV sector is as insipid as dry sawdust – wrong. The company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore. The divestment is expected to trim promoter stake in the company to 37 percent.

Board approval for this transaction came through yesterday and the company is seeking its shareholders’ nod through an extraordinary general meeting which is scheduled for 14 October 2016. DEN Networks informed the BSE about its intentions yesterday.

Media observers say that the Indian cable TV ecosystem – including the government, the regulator TRAI, broadcasters, MSOs and cable TV operators – has stumbled in the digitization process which was mandated by the ministry of information and broadcasting four years back. They have also been saying that investor sentiment towards the sector is pretty weak. Shares of most leading Indian cable TV companies have been depressed, and have been parked at lows.

However, DEN Networks has been taking steps to correct the perception. It has brought back its CEO SN Sharma who has since been working on raising revenues and profitability.

The Goldman investment should come as a shot in the arm for DEN Networks as well as the Indian cable TV sector which is grappling with reinventing its business model.

The company’s CFO Manish Dawar told CNBC TV18 that the company will be utilising the funds to invest in the broadband business as well as to reduce its debt. Earlier, this month, it had got board approval to demerge its broadband/internet service provider (ISP) business undertaking into its wholly owned subsidiary Skynet Cable Network . The company’s ISP business had a turnover of around Rs 40 crore in FY-2016.

Dawar told the business news channel that DEN’s performance is on the upswing. “In Q1 we have already turned positive on EBITDA basis and if we were to look at I am talking about pre-activation which is what the investors wanted to kind of look at, so, therefore Q1 on cable business we are already EBITDA positive. Broadband is progressing very well, we have been able to reduce our losses tremendously over the last one year,” he said. “TV-Shop we are very close to break even. So, if you were to look at on a consolidated basis also, in the current quarter and I am talking about on a like-to- like basis, last quarter we were at minus (–) Rs 5 crore and the current quarter is positive Rs 5 crore on consolidated basis.”

Investors greeted the Goldman Sachs announcement with delight. DEN Networks shares hit a high of Rs 85 during day trading yesterday only to close at Rs 80.85 – a rise of 3.5 per cent. The company’s share had hit a 52 week high of Rs 133 (21 September 2015) and it had dropped to a low of Rs 60.50 on 15 February 2016.

The company also made an investor presentation yesterday in which it stated that its digital rollout is progressing well. Of the 13 million subscribers it has, almost 9.8 million of them have upgraded to digital in Q1 2017. Five million of these are in DAS Phase I & II areas with the remainder being in Phase III and phase IV.

September 21, 2016
Goldman Sachs to up stake in cable TV MSO DEN Networks; to invest Rs 142.43 crore

MUMBAI: MSO DEN Networks has proved the naysayers – who have been carping that the Indian cable TV sector is as insipid as dry sawdust – wrong. The company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore. The divestment is expected to trim promoter stake in the company to 37 percent.

Board approval for this transaction came through yesterday and the company is seeking its shareholders’ nod through an extraordinary general meeting which is scheduled for 14 October 2016. DEN Networks informed the BSE about its intentions yesterday.

Media observers say that the Indian cable TV ecosystem – including the government, the regulator TRAI, broadcasters, MSOs and cable TV operators – has stumbled in the digitization process which was mandated by the ministry of information and broadcasting four years back. They have also been saying that investor sentiment towards the sector is pretty weak. Shares of most leading Indian cable TV companies have been depressed, and have been parked at lows.

However, DEN Networks has been taking steps to correct the perception. It has brought back its CEO SN Sharma who has since been working on raising revenues and profitability.

The Goldman investment should come as a shot in the arm for DEN Networks as well as the Indian cable TV sector which is grappling with reinventing its business model.

The company’s CFO Manish Dawar told CNBC TV18 that the company will be utilising the funds to invest in the broadband business as well as to reduce its debt. Earlier, this month, it had got board approval to demerge its broadband/internet service provider (ISP) business undertaking into its wholly owned subsidiary Skynet Cable Network . The company’s ISP business had a turnover of around Rs 40 crore in FY-2016.

Dawar told the business news channel that DEN’s performance is on the upswing. “In Q1 we have already turned positive on EBITDA basis and if we were to look at I am talking about pre-activation which is what the investors wanted to kind of look at, so, therefore Q1 on cable business we are already EBITDA positive. Broadband is progressing very well, we have been able to reduce our losses tremendously over the last one year,” he said. “TV-Shop we are very close to break even. So, if you were to look at on a consolidated basis also, in the current quarter and I am talking about on a like-to- like basis, last quarter we were at minus (–) Rs 5 crore and the current quarter is positive Rs 5 crore on consolidated basis.”

Investors greeted the Goldman Sachs announcement with delight. DEN Networks shares hit a high of Rs 85 during day trading yesterday only to close at Rs 80.85 – a rise of 3.5 per cent. The company’s share had hit a 52 week high of Rs 133 (21 September 2015) and it had dropped to a low of Rs 60.50 on 15 February 2016.

The company also made an investor presentation yesterday in which it stated that its digital rollout is progressing well. Of the 13 million subscribers it has, almost 9.8 million of them have upgraded to digital in Q1 2017. Five million of these are in DAS Phase I & II areas with the remainder being in Phase III and phase IV.

September 21, 2016
Newsy expands to Cable via Fioptics

MUMBAI: Scripps’ subsidiary Newsy is now available to the cable television audiences through a partnership with Cincinnati Bell’s Fioptics. The over-the-top news network will feature news live.

Newsy offers analysis and perspective on the day’s top stories, spanning world and national news, policy, culture, science and technology.

“Cable is still the most powerful television viewing platform in the world,” said Newsy GM Blake Sabatinelli. “Partnering with Cincinnati Bell allows us to deliver our award-winning news coverage to an
audience hungry for a new perspective.”

“As we continue to expand the Fioptics channel lineup, we’re committed to providing our subscribers with the best content. Newsy provides a fresh take on news coverage that our customers will embrace,” added Cincinnati Bell director of content and consumer product marketing strategy Michael Morrison.

The partnership marks Newsy’s first carriage with a cable TV network. In the last 18 months, Newsy has added distribution on services including Sling TV, Roku, Watchable from Comcast and Apple TV.

E.W. Scripps, the storied owner of 19 local television stations and daily newspapers in 13 markets across the U.S., announced that it has acquired Newsy, a digital video news platform, for $35 million in
cash. Newsy will become a subsidiary of Scripps

September 20, 2016
Newsy expands to Cable via Fioptics

MUMBAI: Scripps’ subsidiary Newsy is now available to the cable television audiences through a partnership with Cincinnati Bell’s Fioptics. The over-the-top news network will feature news live.

Newsy offers analysis and perspective on the day’s top stories, spanning world and national news, policy, culture, science and technology.

“Cable is still the most powerful television viewing platform in the world,” said Newsy GM Blake Sabatinelli. “Partnering with Cincinnati Bell allows us to deliver our award-winning news coverage to an
audience hungry for a new perspective.”

“As we continue to expand the Fioptics channel lineup, we’re committed to providing our subscribers with the best content. Newsy provides a fresh take on news coverage that our customers will embrace,” added Cincinnati Bell director of content and consumer product marketing strategy Michael Morrison.

The partnership marks Newsy’s first carriage with a cable TV network. In the last 18 months, Newsy has added distribution on services including Sling TV, Roku, Watchable from Comcast and Apple TV.

E.W. Scripps, the storied owner of 19 local television stations and daily newspapers in 13 markets across the U.S., announced that it has acquired Newsy, a digital video news platform, for $35 million in
cash. Newsy will become a subsidiary of Scripps

September 20, 2016