Cable TV

Mumbai cable ops reject compromise formula

Published

23 years ago

July 7, 2003

NEW DELHI/MUMBAI: Even as the Indian government today continued its efforts to convince the media and critics that everything is hunky-dory on the conditional access front, the Mumbai cable operators and cable distributors joined issue with their Delhi counterparts in denouncing a move to price cable services at Rs 72 during an interim period when an area-wise rollout is done.
The government also today clarified that the cable service price of Rs 72 per month for the non-CAS enabled areas in the four metros would continue till the time the metros become fully become CAS-enabled.
According to Sonali Cable proprietor and spokesperson of CODA (Mumbai Cable Operators and Distributors’ Association) Suvarna G Amonkar, “The association of Mumbai cable operators and distributors has rejected the move to price cable services at Rs 72 during the interim period. Mumbai based operators have joined forces with Delhi based cable operators to fight the nexus between broadcasters and MSOs.”
On Saturday, the Delhi-based Cable Operators United Front (COUF) had rejected the so-called truce called by the broadcasters and the MSOs at the instance of the government.
Even as this was happening, Zee Telefilms chairman and managing director Subhash Chandra today told CNBC India-TV 18 business news channel that as per his estimates there would be sizeable demand for the set top boxes in the metros.
Cable fraternity continues to be divided
Though some cable operators in Mumbai and Delhi have protested a government-supported move to go in for area-wise rollout of CAS in the four metros, to be completed by 1 December, another section has supported the move.
In a letter to the Prime Minister’s Office (PMO) and a key official there, Sudheendra Kulkarni, Shiv Sena Vibhag Pramukh and Dattatray Cable proprietor Anil Parab, a CAS taskforce member, has highlighted the following concerns:
1) The price of Rs 72 per month would put financial pressure on cable operators as they will not be able to meet the operational expenses such as network maintenance and salaries of staff. The government must notify that the cable operators can charge at the old rates existing as of 31 December 2002, in sync with the Mumbai high court interim order.
2) This problem will be compounded if the CAS implementation deadline is further extended due to delaying tactics adopted by broadcasters or MSOs.
3) If the government issues a notification on Rs 72 per month, the Mumbai HC that is scheduled to hear the cable case on 23 July might be influenced to pass a judgement on similar lines. Then, cable operators will not be able to properly collect dues for an entire year starting January 2003 and won’t be able to pay MSOs who, in turn, won’t be able to settle dues with broadcasters. Already, broadcasters have threatened to disconnect if all past dues are not settled by end July.
The Delhi-based COUF had, of course, termed the whole truce effort “shocking and disappointing”, especially as there was no complete and true representation of cable operators at the meeting where the compromise formula — with riders from broadcasters — was evolved.
Pointing out that the price of Rs 72 for the basic tier, termed as the service charges, is too low, COUF president Virendra Gaur had warned that “there will be no cable television in these four metro post CAS if the viability of the last mile operator is not taken into consideration.”
Gaur’s poser to the government: “How can a government neglect the interest of lakhs of poor self-employed citizens and help some big houses or foreign companies to grow on the bodies of some poor people?”
But the counterpoint to all these arguments come from the likes of Roop Sharma, Vikki Chowdhry and Rakesh Dutta of the Cable Operators Federation of India, National Cable and Telecom Association and Cable Networks Association, respectively. Most cable ops, aligned to them, have welcomed the compromise formula despite having to take a hit of Rs 500 million per month. This is contrary to the broadcasters’ claims that the cable ops would take a hit of up to Rs 2 billion.
According to them, the compromise formula hammered out by the PMO is a laudable one and should be accepted even if it means some loss of revenue for the cable operators in the short term
The worrying factor
It is indiantelevision.com’s understanding that the price of Rs 72 for the debatable interim period — the government insists it’s till 1 December, while the broadcasters say it’s till 31 August — is not the real issue that is worrying the cable fraternity.
The worrisome issue is the riders put in by the broadcasters — and not opposed by the government also till today. The proposed riders state that the broadcasters would waive off subscription fee for the pay channels for the month of August if the MSOs clear all their past dues by 31 July and come clean with their subscriber base with the help of the cable operators.
If the dues were not cleared by July end, the broadcasters would reserve the right to switch off any errant MSO.
Though this is not being spelt out in public and formally by the MSOs and the cable ops, in private they do admit that clearing of dues, some of them disputed, and declaring the subscriber base may give rise to another round of face-off.
The government stand
Meanwhile, the confused government continued to meander on the CAS issue. Today senior officials of the information and broadcasting ministry tried to impress upon the media that area-wise rollout of CAS, starting from 1 September, is the best formula that could have been evolved.
Late last week, the government had also tried to gloss over the mismanagement of CAS implementation affair by stating that a section of the media had carried “misleading” reports on CAS suggesting implementation of CAS has been postponed to September.
An official statement from the ministry had stated that the twin objectives of CAS, based on the principle that consumers can choose what they wish to watch and pay only for what they watch are (i) the cable operator shall charge only Rs 72 per month plus taxes for the basic tier of FTA channels and (ii) pay channel viewers shall pay, additionally, only for the pay channels of their choice using a set-top-box.
The statement had further pointed out that MSOs and pay broadcasters “stand committed to the implementation of CAS in the interest of the consumer and for ensuring regulated growth of the cable TV industry.”

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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.