Cable TV

Cable cos ahead, telcos catching up: US Survey

Published

21 years ago

April 18, 2005

MUMBAI: In the US, the entertainment environment is rapidly evolving to be one where there will be intense competition among cable and telecom companies to offer triple play – phone, cable TV and Internet services.

American cable ops have fast taken the lead as the bundled service provider. Most operators expect a double-digit topline and cash flow growth, primarily driven by their bundled service offerings.

The phone companies are right on their heels and will soon be evaluating their return on investment for triple and quadruple play bundles. But how will all of this net out?

A significant minority of American consumers are ready to switch to a bundled package offered by a single provider, according to a Ipsos-Insight study that looked at a number of price and service scenarios.

The motivation for consumers

This comes in the form of cheaper bills and the convenience of one consolidated payment per month. The good news for consumers is that the triple play strategy, promoted for many years, is now a reality.

Cable TV companies already offer phone service and Internet service, while phone companies will soon be offering cable TV service, along with their high-speed Internet and phone services.

There’s a lot at stake for the bundling strategies to succeed. The cable TV industry collectively has invested about $85 billion to upgrade networks and to support bundled strategies as well as services such as video-on demand, according to the study.

Not far behind are the telecom giants: SBC, Verizon, and Bell South are pouring $10 billion into fibre optic cable so they can offer TV signals over their phone lines.

Telecom leader SBC plans to roll out its TV service in November of this year and expects to attract between 2 and 3 million households by the end of 2005.

Who will win this high stakes game?

This will depend on the package. According to the Ipsos study, in one scenario where consumers evaluated a bundled Internet, television, and telephone service package at $119 a month, an estimated seven per cent of American households say they will switch to a bundled package offered by a phone company.

Seven per cent say that they will switch to the same package offered by a cable TV company. Satellite companies can expect less then half of that, about three per cent of the market.

Explains Ipsos-Insight senior VP and head cable, media and entertainment practice Lynne Bartos, “Clearly, consumers see the phone and cable companies as equals in this triple play scenario. Not surprising, there’s a segment of the population still unfamiliar with satellite companies’ offerings and may be skeptical about their ability to provide high-speed Internet and phone services.”

Data for the survey was gathered among 601 adults above 18 years, using the Ipsos US Online Panel. The study was conducted between 4-15 February, 2005.

Phone companies look strong in Quadruple Play market

In the quadruple play market which includes wireless phone service, the telcos, however, stand at an advantage. By adding 1,000 wireless minutes for a total bundle price of about $149 a month, the research shows that phone companies can potentially expect to acquire around 16 per cent of the switchers.

This will leave cable TV companies with a five per cent share, and satellite providers with a two per cent share. The vast majority of Americans (76 per cent) will remain with their current, unbundled services.

In the basic triple-play scenario tested with cable TV, Internet and phone packages at parity from various providers, it seems consumers are equally likely to give their business to either service provider depending on the package.

Value added features, like video-on-demand, HDTV capabilities, DVRs etc will play an important role at the point of purchase and are likely to tip the scales.

Wireless phone service favours the phone companies initially and it makes sense since cable operators are not known to provide wireless phone as of yet.

“But we expect to see more deals like the recent one between Time Warner Cable and Sprint, indicating that the cable operators are aggressively pursuing the quadruple play,” Bartos said.

Related Topics:cable cable TV game HDTV telcos US Survey

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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.