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  • Higher subscription & activation lead Den’s turnaround in Q2

    Higher subscription & activation lead Den’s turnaround in Q2

    BENGALURU: Indian multi system operator (MSO) Den Network (Den) reported growth in operating revenue, operating profit (EBIDTA) and profit after tax (PAT) for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter. In Q2-17 (the corresponding year ago quarter), the company had reported a loss. The change to black from red in the current quarter was driven by a reported 22.3 percent increase in operating revenue and an operating profit for its cable distribution (cable) business. Den’s cable business performed well due to cost optimisation measures and the company accelerating its subscription collections. The company claims in its earnings release that its subscription collection efficiency in Q2-18 was 93 percent.

    Den’s operating revenue for Q2-18 was Rs 3,277.9 million, 20.3 percent more y-o-y as compared to Rs 2,724.4 million. Total income including other revenue grew 19.6 percent y-o-y to Rs 3,349 million from Rs 2,800.4 million. The company reported 2.84 times the EBIDTA for Q2-18 at Rs 815.5 million as compared to Rs 287.5 million for the corresponding year ago quarter. PAT for the current quarter was Rs 11.1 million as compared to a loss of Rs 439.6 million in Q2-17.

    Cable business revenue in Q2-18 was Rs 3,079.9 million as compared to Rs 2,517.4 million in Q2-17.Cable business operating profit in the current quarter was Rs 277.5 million as compared to a an operating loss of Rs 306.7 million in Q2-17. Cable business subscription revenue increased 24 percent y-o-y to Rs 164 million from Rs 132 million. Activation revenue increased more than 7 times (7.3 times) to Rs 37 million from Rs 5 million. Placement revenue increased 2 percent y-o-y to Rs 88 million from Rs 86 million. Broadband revenue declined 8 percent y-o-y to Rs 19 million from Rs 21 million. Broadband EBIDTA loss was lower at Rs 1 million in Q2-18 as compared to an operating loss of Rs 2 million in Q2-17.

    Den says that it has deployed 0.25 million digital set top boxes in Q2-18 and its digital subscriber base (including associates) stands at 11 million. Broadband subscriber base in the current quarter was 0.205 million as compared to 0.14 million in Q2-17. Broadband ARPU declined in Q2-18 to Rs 664 from Rs 775 in Q2-17.

    Total expenditure in Q2-18 was almost flat (increased 0.6 percent) y-o-y to Rs 3,261.2 million from Rs 3,240.3 million. The company has reduced employee costs in the current quarter by 17.1 percent to Rs 273.8 million from Rs 330.2 million. Placement fees expense in Q2-18 declined 22.5 percent y-o-y to Rs 107 million from Rs 138 million. Other expenses declined 3.7 percent y-o-y to Rs 756.9 million from Rs 786.2 million. Content costs in the current quarter increased 12 percent y-o-y to Rs 1,324.7 million from Rs 1,182.5 million.

  • 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.

  • Den Networks cable operations revenue up; broadband revenue doubles

    BENGALURU: Indian multi system operator (MSO) Den Network reported 21.8 percent increase in operating revenue for its Cable distribution (cable) business  for the year ended 31 March 2017 (FY-17) at Rs 1,075.54 crore as compared to Rs 883.24 crore in the previous year (FY-16). The company’s broadband internet revenue in FY-17 more than doubled to Rs 81.80 crore from Rs 39.80 crore in FY-16.

    The company claims in its earnings release that Cable business EBIDTA increased to Rs 144 crore in FY-17 from Rs 18 crore in the previous year. The company’s EBIDTA in FY-17 doubled to Rs 254 crore from Rs 127 crore in FY-16. Broadband business EBIDTA reduced to a loss of Rs 10 crore versus a loss of Rs 66 crore in the previous year. Pre-activation EBIDTA in FY-17 grew to Rs 135 crore as compared to a loss of Rs 107 crore in FY-16.

    Overall, Den Networks revenue increased 19.1 percent in fiscal 2017 to Rs 1198.26 crore from Rs 1,005.87 crore in the previous fiscal. Cable subscription revenue grew 33 percent to Rs 646 crore in FY-17 from Rs 487 crore in FY-16. Den Networks reported a lower net loss of Rs 189.57 crore in FY-17 as compared to a loss of Rs 431.30 crore in the previous year.

    The company says that it has focused largely on cash collections during the year which has brought down the net debt of the company to Rs. 181 crores as at March 31, 2017, thereby deleveraging its balance sheet.

    Den Networks CEO SN Sharma said, “The cable subscription revenues grew by 33 percent in the current financial year and contributed to the financial turnaround for the company. The EBITDA for DAS I has grown from 23 percent to 30 percent and the EBITDA for DAS II has grown from 11 percent to 18 percent this year. The company continues to focus on core businesses, while preparing for HD Box deployment, cost optimization and technology up gradation to enhance consumer experience and improve operational efficiency.”

    Let us look at the other numbers reported by Den Network

    Den’s total expenses in FY-17 reduced 1.8 percent to Rs 1,321.19 crore from Rs 1,344.83 crore in FY-16. Content Costs in FY-17 was almost flat at Rs 473.28 crore as compared to Rs 473.22 crore in the previous year. Placement fees costs in FY-17 reduced 6.2 percent to Rs 50.20 crore from Rs 53.50 crore in FY-16.

    Employee Benefits Expense in FY-17 was also almost flat (increased 0.3 percent) to Rs 123.37 crore from Rs 123.01 crore in the previous year. Other Expenses in fiscal 2017 declined 19.1 percent to Rs 331.68 crore from Rs 409.91 crore in fiscal 2016.

  • DEN Digital Cable: Den Networks hikes stake to 88.57%

    MUMBAI: Den Networks recently entered into a pact with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN.

    Cable television multi-system operator (MSO) Den Networks has bought an additional 37.57 per cent shares in its subsidiary DEN Digital Cable Network, eventually hiking its stake to 88.57 per cent.

    “Den Networks Ltd has entered into an agreement with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN from 51 percent to 88.57 percent,” Den Networks said in a BSE filing.

    The company has purchased the stake from existing shareholders of DDCN, the company added in the filing. The price of additional share purchase is Rs 4.60 crore.

    DDCN carries its business of cable services in Gurgaon and the additional acquisition would help consolidate the cable business of the company in the state of Haryana.

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

    Den Networks Ltd (Den) Cable business segment consolidated total revenue (pre-activation) increased 18 per cent in in the quarter ended 30 September 2016 (Q2-17, current quarter) to Rs 258 crore from Rs 231 crore in Q2-16. The company reported consolidated EBIDTA of Rs 34 crore in Q2-17 as compared to Rs 1 crore in the corresponding year ago quarter. Consolidated net loss in Q2-17 more than halved to Rs 48 crore as compared to a loss of Rs 99 crore in Q2-16.

    Cable subscription revenue increased 31 percent y-o-y to Rs140 crore in Q2-17 from Rs115 crore in Q2-16. Cable activation revenue increased 17 percent y-o-y to Rs 32 crore from Rs 27 crore. Placement revenue declined 13 per cent y-o-y to Rs86 crore from Rs98 crore.

    The company reported 101 lakh DAS subscribers, of which 51 lakh were from DAS phases III and IV for Q2-17. The company had 76 lakh digital subscribers in Q2-16.Den has a cable subscriber base of 1.3 crore.

  • Q3-17: Den Networks reports higher ARPUs, subscription revenue & operating profits

    Q3-17: Den Networks reports higher ARPUs, subscription revenue & operating profits

    BENGALURU: Following the 26.7 percent year-over-year (y-o-y) increase in the previous quarter, multiple-systems operator (MSO) Den Networks Limited (Den) reported 29.7 percent y-o-y increase in consolidated Total Income from operations (TIO) for the quarter ended December 31, 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter (Q3-16). The company also reported a 75.1 percent quarter-over quarter (q-o-q) increase in consolidated operating profit (EBIDTA) to Rs 50.34 crore (18.7 percent margin) from Rs 28.75 crore (10.6 percent margin) in the current quarter. In the corresponding year ago quarter Den had reported an operating loss (negative EBIDTA) of Rs 39.56 crore. Den’s TIO for the current quarter was Rs 298.83 crore as compared to Rs 230.39 crore in Q3-16. EBIDTA including other income was Rs 62.60 crore (22.3 percent margin of TIO) in Q3-17 as opposed to an operating loss (including other income) of Rs 27.03 crore in Q3-16.

    Further the company reported lower losses for the current quarter as compared to the corresponding year ago quarter. Net loss after tax (PAT) reduced to Rs 45.19 crore in Q3-17 as compared to a loss of Rs 87.39 crore in Q3-16. Total Comprehensive Income (TCI) improved to a negative Rs 44.39 crore in Q3-17 as compared a negative Rs 87.18 crore in Q3-16.

    Said DEN Networks CEO SN Sharma: “The company continues to improve on cable subscription billing on a quarter on quarter basis. ARPU (including taxes) for DAS 1, 2 and 3 markets stood at Rs 125, Rs. 95 and Rs. 64 per box respectively which reflects on improvement of 11 per cent , 6 per cent and 23 per cent respectively on Q-o-Q basis , with a strong collection efficiency at 95 per cent .”

    Sharma also announced that DEN has  achieved break even in the company’s broadband business for the full quarter despite telecom launches and freebies offered by the big players.

    Segment numbers

    The company has two operating segments that contribute to revenue for now– Cable Distribution Network (Cable) and Broadband (brand Boomband). Both segments reported improved operating numbers. Its third segment – the soccer segment has no revenue as of now. The segment has neither income nor result for the current quarter. That’s because the company is gradually exiting from the business and has divested almost 80 per cent of its equity in the team.

    Cable segment reported 35.4 percent growth in operating revenue in Q3-17 at Rs 277.36 crore as compared to Rs 204.84 crore in Q3-16. The segment’s operating loss in the current quarter improved significantly to Rs 11.68 crore as compared to higher operating loss of Rs 43.90 core in Q3-16 and an operating loss of Rs 31.22 crore in the immediate trailing quarter.

    Broadband segment revenue increased 82.6 in the current quarter to Rs 21.47 crore as compared to Rs 11.76 crore in Q3-16. The segment reported lower standalone operating loss in Q3-17 of Rs 7.22 crore as compared to an operating loss of Rs 19.77 crore in the corresponding year ago quarter.

    Let us look at the other numbers reported by Den

    Other Income in Q3-17 declined 2.2 percent to Rs 12.26 crore as compared to Rs 12.53 crore in Q3-16

    Total Expenditure in the current quarter was 0.8 percent lower at Rs 317.73 crore (118.2 percent of TIO) as compared Rs 320.17 crore (162.6 percent of TIO) in Q3-16.

    A major cost head for Den is Content Costs which increased 3.5 percent to Rs 119.28 crore (44.4 percent of TIO) in Q3-17 from Rs 115.27 crore (58.5 percent of TIO).

    Other Expenses reduced 26.9 percent in the current quarter to Rs 84.44 crore (31.4 percent of TIO) as compared to Rs 115.49 crore (58.7 percent of TIO) in Q3-16.

    Placement fees increased 2.9 percent in the current quarter to Rs 11.82 crore (4.4 percent of TIO) as compared to Rs 11.49 crore (5.8 percent of TIO) in the corresponding year ago quarter.

    Employee benefits expense in Q3-17 increased 17.3 percent to Rs 32.95 crore (12.3 percent of TIO) as compared to Rs 28.10 crore (14.3 percent of TIO) in Q3-16.

    Finance costs in the current quarter increased 9 percent to Rs 20.44 crore (7.6 percent of TIO) as compared to Rs 18.75 crore (9.5 percent of TIO) in Q3-16.

    Note: (1) All numbers mentioned in this report are standalone unless stated otherwiserigh.

    (2)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.

  • Q3-17: Den Networks reports higher ARPUs, subscription revenue & operating profits

    Q3-17: Den Networks reports higher ARPUs, subscription revenue & operating profits

    BENGALURU: Following the 26.7 percent year-over-year (y-o-y) increase in the previous quarter, multiple-systems operator (MSO) Den Networks Limited (Den) reported 29.7 percent y-o-y increase in consolidated Total Income from operations (TIO) for the quarter ended December 31, 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter (Q3-16). The company also reported a 75.1 percent quarter-over quarter (q-o-q) increase in consolidated operating profit (EBIDTA) to Rs 50.34 crore (18.7 percent margin) from Rs 28.75 crore (10.6 percent margin) in the current quarter. In the corresponding year ago quarter Den had reported an operating loss (negative EBIDTA) of Rs 39.56 crore. Den’s TIO for the current quarter was Rs 298.83 crore as compared to Rs 230.39 crore in Q3-16. EBIDTA including other income was Rs 62.60 crore (22.3 percent margin of TIO) in Q3-17 as opposed to an operating loss (including other income) of Rs 27.03 crore in Q3-16.

    Further the company reported lower losses for the current quarter as compared to the corresponding year ago quarter. Net loss after tax (PAT) reduced to Rs 45.19 crore in Q3-17 as compared to a loss of Rs 87.39 crore in Q3-16. Total Comprehensive Income (TCI) improved to a negative Rs 44.39 crore in Q3-17 as compared a negative Rs 87.18 crore in Q3-16.

    Said DEN Networks CEO SN Sharma: “The company continues to improve on cable subscription billing on a quarter on quarter basis. ARPU (including taxes) for DAS 1, 2 and 3 markets stood at Rs 125, Rs. 95 and Rs. 64 per box respectively which reflects on improvement of 11 per cent , 6 per cent and 23 per cent respectively on Q-o-Q basis , with a strong collection efficiency at 95 per cent .”

    Sharma also announced that DEN has  achieved break even in the company’s broadband business for the full quarter despite telecom launches and freebies offered by the big players.

    Segment numbers

    The company has two operating segments that contribute to revenue for now– Cable Distribution Network (Cable) and Broadband (brand Boomband). Both segments reported improved operating numbers. Its third segment – the soccer segment has no revenue as of now. The segment has neither income nor result for the current quarter. That’s because the company is gradually exiting from the business and has divested almost 80 per cent of its equity in the team.

    Cable segment reported 35.4 percent growth in operating revenue in Q3-17 at Rs 277.36 crore as compared to Rs 204.84 crore in Q3-16. The segment’s operating loss in the current quarter improved significantly to Rs 11.68 crore as compared to higher operating loss of Rs 43.90 core in Q3-16 and an operating loss of Rs 31.22 crore in the immediate trailing quarter.

    Broadband segment revenue increased 82.6 in the current quarter to Rs 21.47 crore as compared to Rs 11.76 crore in Q3-16. The segment reported lower standalone operating loss in Q3-17 of Rs 7.22 crore as compared to an operating loss of Rs 19.77 crore in the corresponding year ago quarter.

    Let us look at the other numbers reported by Den

    Other Income in Q3-17 declined 2.2 percent to Rs 12.26 crore as compared to Rs 12.53 crore in Q3-16

    Total Expenditure in the current quarter was 0.8 percent lower at Rs 317.73 crore (118.2 percent of TIO) as compared Rs 320.17 crore (162.6 percent of TIO) in Q3-16.

    A major cost head for Den is Content Costs which increased 3.5 percent to Rs 119.28 crore (44.4 percent of TIO) in Q3-17 from Rs 115.27 crore (58.5 percent of TIO).

    Other Expenses reduced 26.9 percent in the current quarter to Rs 84.44 crore (31.4 percent of TIO) as compared to Rs 115.49 crore (58.7 percent of TIO) in Q3-16.

    Placement fees increased 2.9 percent in the current quarter to Rs 11.82 crore (4.4 percent of TIO) as compared to Rs 11.49 crore (5.8 percent of TIO) in the corresponding year ago quarter.

    Employee benefits expense in Q3-17 increased 17.3 percent to Rs 32.95 crore (12.3 percent of TIO) as compared to Rs 28.10 crore (14.3 percent of TIO) in Q3-16.

    Finance costs in the current quarter increased 9 percent to Rs 20.44 crore (7.6 percent of TIO) as compared to Rs 18.75 crore (9.5 percent of TIO) in Q3-16.

    Note: (1) All numbers mentioned in this report are standalone unless stated otherwiserigh.

    (2)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.

  • Den Networks consolidated numbers grow in Q2-17; tests OTT platform

    Den Networks consolidated numbers grow in Q2-17; tests OTT platform

    BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue (pre-activation) increased 18 percent in in the quarter ended 30 September 2016 (Q2-17, current quarter) to Rs 258 crore from Rs231 crore in Q2-16. The company reported consolidated EBIDTA of Rs 34 crore in Q2-17 as compared to Rs 1 crore in the corresponding year ago quarter.

    Consolidated net loss in Q2-17 more than halved to Rs 48 crore as compared to a loss of Rs 99 crore in Q2-16.

    Twomain segments currently contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband internet segment (Boomband). It has two other segments – TV Commerce and soccer. Den says that its OTT platform is undergoing tests and will be launched soon. The company says further that it has divested another 25 percent of its soccer business.

    Cable segment

    Cable subscription revenue increased 31 percent y-o-y to Rs140 crore in Q2-17 from Rs115 crore in Q2-16. Cable activation revenue increased 17 percent y-o-y to Rs 32 crore from Rs 27 crore. Placement revenue declined 13 percent y-o-y to Rs86 crore from Rs98 crore.

    The company reported 101 lakh DAS subscribers, of which 51 lakh were from DAS phases III and IV for Q2-17. The company had 76 lakh digital subscribers in Q2-16.Den has a cable subscriber base of 1.3 crore.

    Broadband segment

    Den’s Broadband segment revenue more than doubled (2.6 times) in Q2-17 to Rs 21 crore from Rs 8 crore in Q2-16. Please refer to the figure below for Den’s revenue break-up for Q2-17 and Q2-16.

    The company says that it has added about 25,000 subscribers in the current quarter, hence bringing its broadband internet subscriber base to 140,000.

    Broadband segment’s operating loss (EBIDTA) in Q2-17 was lower at Rs 2 crore as compared to an operating loss of Rs 11 crore in Q2-16 and an operating loss of Rs 9 crore in the immediate trailing quarter.

    public://DEN.jpg

    Other numbers for Q2-17

    Den’s consolidated total expenditure in the current quarter declined 4 percent to Rs 244 crore from Rs 256 crore in Q2-16.

    Content costs are a major component of Den’s expenditure- Content costs in the current quarter declined 8 percent in the current quarter to Rs 118 crore from Rs 128 crore in the corresponding year ago quarter.

    Employee(Personnel) costs increased2 percent in the current quarter to Rs33 crore from Rs 34 crore in Q2-16. Other operating expenses in Q2-17 declined4 percent to Rs 84 crore from Rs88 crore.

    Note: (1.1) The above report is based on Den’s investor presentation for Q2-17.
    (1.2) All numbers mentioned are consolidated unless stated otherwise.
    (1.3)    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.

     

  • Den Networks consolidated numbers grow in Q2-17; tests OTT platform

    Den Networks consolidated numbers grow in Q2-17; tests OTT platform

    BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue (pre-activation) increased 18 percent in in the quarter ended 30 September 2016 (Q2-17, current quarter) to Rs 258 crore from Rs231 crore in Q2-16. The company reported consolidated EBIDTA of Rs 34 crore in Q2-17 as compared to Rs 1 crore in the corresponding year ago quarter.

    Consolidated net loss in Q2-17 more than halved to Rs 48 crore as compared to a loss of Rs 99 crore in Q2-16.

    Twomain segments currently contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband internet segment (Boomband). It has two other segments – TV Commerce and soccer. Den says that its OTT platform is undergoing tests and will be launched soon. The company says further that it has divested another 25 percent of its soccer business.

    Cable segment

    Cable subscription revenue increased 31 percent y-o-y to Rs140 crore in Q2-17 from Rs115 crore in Q2-16. Cable activation revenue increased 17 percent y-o-y to Rs 32 crore from Rs 27 crore. Placement revenue declined 13 percent y-o-y to Rs86 crore from Rs98 crore.

    The company reported 101 lakh DAS subscribers, of which 51 lakh were from DAS phases III and IV for Q2-17. The company had 76 lakh digital subscribers in Q2-16.Den has a cable subscriber base of 1.3 crore.

    Broadband segment

    Den’s Broadband segment revenue more than doubled (2.6 times) in Q2-17 to Rs 21 crore from Rs 8 crore in Q2-16. Please refer to the figure below for Den’s revenue break-up for Q2-17 and Q2-16.

    The company says that it has added about 25,000 subscribers in the current quarter, hence bringing its broadband internet subscriber base to 140,000.

    Broadband segment’s operating loss (EBIDTA) in Q2-17 was lower at Rs 2 crore as compared to an operating loss of Rs 11 crore in Q2-16 and an operating loss of Rs 9 crore in the immediate trailing quarter.

    public://DEN.jpg

    Other numbers for Q2-17

    Den’s consolidated total expenditure in the current quarter declined 4 percent to Rs 244 crore from Rs 256 crore in Q2-16.

    Content costs are a major component of Den’s expenditure- Content costs in the current quarter declined 8 percent in the current quarter to Rs 118 crore from Rs 128 crore in the corresponding year ago quarter.

    Employee(Personnel) costs increased2 percent in the current quarter to Rs33 crore from Rs 34 crore in Q2-16. Other operating expenses in Q2-17 declined4 percent to Rs 84 crore from Rs88 crore.

    Note: (1.1) The above report is based on Den’s investor presentation for Q2-17.
    (1.2) All numbers mentioned are consolidated unless stated otherwise.
    (1.3)    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.

     

  • Q2-17: Den Networks reports higher revenue, operating profits

    Q2-17: Den Networks reports higher revenue, operating profits

    BENGALURU: Multiple-systems operator Den Networks Limited (Den) reported 26.7 percent increase in Total Income from operations (TIO) for the quarter ended September 30, 2016 (Q2-17, current quarter) as compared to the corresponding year ago quarter (Q2-16). The company also reported a consolidated operating profit (EBIDTA) of Rs 28.75 crore (10.6 percent margin) in the current quarter as opposed to an operating loss (negative EBIDTA) of Rs 39.80 crore. Den’s TIO for the current quarter was Rs 272.44 crore as compared to Rs 214.99 crore. EBIDTA including other income was Rs 36.24 crore (13.3 percent margin of IO) in Q2-17 as opposed to an operating loss (including other income) of Rs 27.14 crore in Q2-16.

    Further the company reported lower losses for the current quarter as compared to the corresponding year ago quarter. Net loss after tax (PAT) reduced to Rs 47.87 crore in Q2-17 as compared to a loss of Rs 83.11 crore in Q2-16. Total Comprehensive Income (TCI) improved to a negative Rs 48.43 crore in Q2-17 as compared a negative Rs 97.66 crore in Q2-16.

    Segment numbers

    The company has two operating segments that contribute to revenue for now– Cable Distribution Network (Cable) and Broadband (brand Boomband). Both segments reported improved operating numbers. Its third segment – the soccer segment has no revenue as of now, but is an expense head and had reported an operating loss of Rs 8.57 crore for Q2-16. The segment has neither income nor result for the current quarter,

    Cable segment reported 21.7 percent growth in operating revenue in Q2-17 at Rs 251.74 crore as compared to Rs 206.84 crore in Q2-16. The segment’s operating loss in the current quarter improved to Rs 31.22 crore as compared to higher operating loss of Rs 54.88 core in Q2-16.

    Broadband segment standalone revenue more than doubled (over 2.6 times) in the current quarter to Rs 20.70 crore as compared to Rs 8.05 crore in Q2-16. The segment reported lower standalone operating loss in Q2-17 of Rs 8 crore as compared to an operating loss of Rs 23.23 crore in the corresponding year ago quarter.

    The company’s soccer segment reported a net loss of Rs

    Let us look at the other numbers reported by Den

    Total Expenditure in the current quarter was 3.3 percent higher at Rs 311.66 crore (114.4 percent of TIO) as compared Rs 301.67 crore (140.3 percent of TIO) in Q2-16. As percentage of TIO, Total expenditure in the current quarter was lower as compared to Q2-16.

    A major cost head for Den is Content Costs which reduced by 7.7 percent to Rs 118.25 crore (43.4 percent of TIO) in Q2-17 from Rs 128.13 crore (59.6 percent of TIO).

    Other Expenses reduced 8 percent in the current quarter to Rs 78.62 crore (28.9 percent of TIO) as compared to Rs 85.46 crore (39.8 percent of TIO) in Q2-16.

    Placement fees more than doubled (increased 59.2 percent) in the current quarter to Rs 13.8 crore (5.1 percent of TIO) as compared to Rs 8.67 crore (4 percent of TIO) in the corresponding year ago quarter.

    Employee benefits expense in Q2-17 declined 1.5 percent to Rs 33.02 crore (12.1 percent of TIO) as compared to Rs 32.53 crore (15.1 percent of TIO) in Q2-16.

    Finance costs in the current quarter declined 36.2 percent to Rs 12.92 crore (4.7 percent of TIO) as compared to Rs 20.25 crore (9.4 percent of TIO) in Q2-16.

    Other Income in Q2-17 was less than half (declined 58.5 percent) to Rs 7.49 crore as compared to Rs 18.06 crore in Q2-16.

    Note: (1) All numbers mentioned in this report are standalone unless stated otherwiserigh.

    (2)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.

     

  • Q2-17: Den Networks reports higher revenue, operating profits

    Q2-17: Den Networks reports higher revenue, operating profits

    BENGALURU: Multiple-systems operator Den Networks Limited (Den) reported 26.7 percent increase in Total Income from operations (TIO) for the quarter ended September 30, 2016 (Q2-17, current quarter) as compared to the corresponding year ago quarter (Q2-16). The company also reported a consolidated operating profit (EBIDTA) of Rs 28.75 crore (10.6 percent margin) in the current quarter as opposed to an operating loss (negative EBIDTA) of Rs 39.80 crore. Den’s TIO for the current quarter was Rs 272.44 crore as compared to Rs 214.99 crore. EBIDTA including other income was Rs 36.24 crore (13.3 percent margin of IO) in Q2-17 as opposed to an operating loss (including other income) of Rs 27.14 crore in Q2-16.

    Further the company reported lower losses for the current quarter as compared to the corresponding year ago quarter. Net loss after tax (PAT) reduced to Rs 47.87 crore in Q2-17 as compared to a loss of Rs 83.11 crore in Q2-16. Total Comprehensive Income (TCI) improved to a negative Rs 48.43 crore in Q2-17 as compared a negative Rs 97.66 crore in Q2-16.

    Segment numbers

    The company has two operating segments that contribute to revenue for now– Cable Distribution Network (Cable) and Broadband (brand Boomband). Both segments reported improved operating numbers. Its third segment – the soccer segment has no revenue as of now, but is an expense head and had reported an operating loss of Rs 8.57 crore for Q2-16. The segment has neither income nor result for the current quarter,

    Cable segment reported 21.7 percent growth in operating revenue in Q2-17 at Rs 251.74 crore as compared to Rs 206.84 crore in Q2-16. The segment’s operating loss in the current quarter improved to Rs 31.22 crore as compared to higher operating loss of Rs 54.88 core in Q2-16.

    Broadband segment standalone revenue more than doubled (over 2.6 times) in the current quarter to Rs 20.70 crore as compared to Rs 8.05 crore in Q2-16. The segment reported lower standalone operating loss in Q2-17 of Rs 8 crore as compared to an operating loss of Rs 23.23 crore in the corresponding year ago quarter.

    The company’s soccer segment reported a net loss of Rs

    Let us look at the other numbers reported by Den

    Total Expenditure in the current quarter was 3.3 percent higher at Rs 311.66 crore (114.4 percent of TIO) as compared Rs 301.67 crore (140.3 percent of TIO) in Q2-16. As percentage of TIO, Total expenditure in the current quarter was lower as compared to Q2-16.

    A major cost head for Den is Content Costs which reduced by 7.7 percent to Rs 118.25 crore (43.4 percent of TIO) in Q2-17 from Rs 128.13 crore (59.6 percent of TIO).

    Other Expenses reduced 8 percent in the current quarter to Rs 78.62 crore (28.9 percent of TIO) as compared to Rs 85.46 crore (39.8 percent of TIO) in Q2-16.

    Placement fees more than doubled (increased 59.2 percent) in the current quarter to Rs 13.8 crore (5.1 percent of TIO) as compared to Rs 8.67 crore (4 percent of TIO) in the corresponding year ago quarter.

    Employee benefits expense in Q2-17 declined 1.5 percent to Rs 33.02 crore (12.1 percent of TIO) as compared to Rs 32.53 crore (15.1 percent of TIO) in Q2-16.

    Finance costs in the current quarter declined 36.2 percent to Rs 12.92 crore (4.7 percent of TIO) as compared to Rs 20.25 crore (9.4 percent of TIO) in Q2-16.

    Other Income in Q2-17 was less than half (declined 58.5 percent) to Rs 7.49 crore as compared to Rs 18.06 crore in Q2-16.

    Note: (1) All numbers mentioned in this report are standalone unless stated otherwiserigh.

    (2)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.