Cable TV

Tony D’silva draws up wishlist for MIB

Published

12 years ago

July 1, 2014

MUMBAI: The Information and Broadcasting Minister (I&B) Prakash Javadekar wants a happy Media and Entertainment industry. And for the same, he has been meeting the members of the industry personally to understand their concerns and devise a way forward.

The cable TV industry, which is currently undergoing digitisation, is looking up to the Minister for a better tomorrow. While digitisation of the 120 million cable TV homes in phase III and phase IV took a backseat with the general elections, so did the launch of the Headend in the Sky (HITS) by Grant Investrade, a 100 per cent subsidiary of Hinduja Ventures.

Now with the Ministry throwing some clarity on the next two phases of digitisation, Hinduja group on Monday paid the Rs 10 crore licence fee to the Ministry to move things forward. But, this isn’t all, with this, the expectations from the Ministry has also risen.

In a conversation with indiantelevision.com, IMCL MD & group CEO Tony D’silva lists down his wishlist from the new government and especially the I&B Minister.

The I&B must demonstrate its commitment to digitisation by immediately announcing the future dates of the remaining two phases.

According to me, unlike phase I and phase II of digitisation, the government should consider digitising not phases, but complete states. This will also avoid the confusion of neighbouring markets like Hyderabad / Secunderabad, Mumbai and suburbs, Delhi and surrounding markets as well as prevent piracy of signals.

The advantage of doing state-wise digitisation is that if the whole state is involved, the state government can easily estimate its revenues and join forces to ensure implementation. (Similar method was followed in some other countries).

Broadcaster pricing needs to be worked out more meaningfully in states that are not yet digitised. From my understanding for most broadcasters, phase I and II contribute at least 75 per cent or more of their existing revenues that is from approximately 30 million homes. This means that the rest 25 per cent or so of their business comes from the 100 million- 120 million homes that fall in the next two phases. So when you look at the ratios, then what really should be the pricing of the broadcasters? Broadcaster pricing is the key to the success of digitisation in phase III and IV.

The broadcaster pricing has to be different. It has to be territory wise and therefore, digitising a complete state is more feasible. The MSOs, broadcasters and the TRAI can sit and discuss in an environment which is more transparent and also come up with pricing which is more viable for phase III and IV.

The Hinduja group is committed to invest over $100 million, to set up its HITS business, which is a white label backend service provider to support the smaller operators and help them retain their business and livelihood (the industry employs a few million people), hence it’s important to support the LMO. The group has already invested a couple of crores on the project, but needs a confirmed date for digitisation, before its expense meter starts ticking (transponder payments etc).

While we do support the government’s effort to encourage indigenisation of set top boxes (STBs), the government should also ensure that it is offered at comparative or better terms than international suppliers (price, credit facilities, repairs, servicing etc). A roadmap for future high end STBs should also be provided.

One of the key players in the value chain is the LMO. Enough by way of regulation and processes has not been done for them as yet. This needs a complete relook in light of the present situation in phase I and II markets.

I believe that one of the key objectives of digitisation is consumer choice. Government must insist on the prepaid model along with packaging of channels from day one of digitisation in phase III and IV markets, or else we will face the same problems like the ones in phases I and II.

The LMO has been the backbone of the C&S industry. In view of this, the government must find a way to encourage them to grow their business. The current licencing policy is completely against the interest of a small LMO. I fail to understand why an operator who has existed for years in the market is asked to get a fresh licence from the centre? I can’t understand if he is a pan India operator, who already has a licence and has a registered business and is even paying his taxes, then why should digitisation change his status?

If he does not comply with the guidelines, action can be taken by the regulator or the market forces will anyway drive him out of business as there are alternatives to consumers like DTH etc. This needs some immediate intervention.

The industry is heavily burdened with huge investments due to digitisation. Investments have been made in headends, backend services and STBs, among other things. I earnestly request that the C&S business be given an industry status. Also a relief from double tax: service tax and entertainment tax is needed. Reduction in import duties is also a necessity as it directly affects the customer. Also the entertainment tax needs to come down. It should be a percentage of the package the customer chooses, rather than have one set rule for all the households.

Another issue is of TRAI’s current regulation on de-aggregation. While the regulation was supposed to help the MSOs, it has had an adverse effect. So, I would like to appeal to the broadcasters and the authorities to intervene and bring about the reasonable pricing model that facilitates business. The broadcasters need to take a long term view of how they can monetise the content, because the old theory of everyone wanting to be on the basic pack cannot work anymore.

Related Topics:DTH Headend in the Sky (HITS)MIB Prakash Javadekar set top boxes (STBs)Tony D

Up Next

Prasar Bharati plans to enter the European market, says Sircar

Don't Miss

DD Bharati commences daily telecast of short films from FTII

Click to comment

Cable TV

Den Networks Q3 profit steady despite revenue pressure

Published

1 month 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

1 month 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.