ITV

Tag: cable business

  • Q2-2014 Den Networks reports 35 per cent higher y-o-y cable revenues

    Q2-2014 Den Networks reports 35 per cent higher y-o-y cable revenues

    BENGALURU: Indian cable TV distribution company Den Networks Limited (Den Networks) continues to rake in the moolah with 32.4 per cent higher total revenue of Rs 271.88 crore for Q2-2014 as compared to the Rs 205.26 crore for Q2-2013 and almost flat (1.8 per cent higher) as compared to the Rs 268.69 crore for Q1-2014. The company reported a 35 per cent y-o-y jump in cable revenue for Q2-2014 at Rs 258.93 crore as compared to the Rs 192.51 crore in the corresponding quarter of last year (Q2-2013).

     

    Note:  
    Den Network claims that on account of a reporting policy change, w.e.f. Q2-2014, all revenue figures exclude ‘Other Income’ which is reported separately after EBITDA, and that past period figures have also been adjusted to this effect to make it comparable. Variance/s has/have been observed between the company’s investor updates of Q1-2014 and Q2-2014 and the statements filed by the company with the stock exchanges. The differences, if any between the financial analysis for Q1-2014 and Q2-2014 must be attributed to the varied accounting methodology/communications by the company. The current analysis is being done based on the updates for Q2-2014 received.

     

    The company reported a 35 per cent y-o-y jump in cable revenue for Q2-2014 at Rs 258.93 crore as compared to the Rs 192.51 crore in the corresponding quarter of last year (Q2-2013) on the back of strong growth in subscription revenues and higher placement revenues despite lower activation revenues in the current quarter.

     

    Q-o-q, the company’s investor update for Q2-2014 says that its cable business revenue was almost the same as the Rs 256.41 crore for Q1-2014, a figure that is Rs 6.44 crore (about 2.45 per cent) lower than the Rs 262.85 crore the company had reported in its Q1-2014 investor update (ref Note above).

     

    The company says that it has deployed about four lakh set top boxes (STBs) during Q2-2014 and claims a digital subscriber base of around five million in DAS phase I and II cities and about eight million analogue subscribers in DAS phase III and IV markets.

     

    Further, Den Networks believes that the next big opportunity after full digitisation of cable TV is offering high speed broadband services to its subscribers. The company announced plans to launch its broadband service offering by late Q4, FY 2013-14 (February 2014).

     

    Let us look at the other Q2-2014 figures announced by Den Networks

     

    The company has reported breakup of its cable revenue as Rs 99.11 crore as subscription revenue, Rs 119.90 crore as placement revenue and Rs 29.43 crore as digital activation revenue.

     

    Den Network’s consolidated EBITDA for Q2 -2014 was Rs 87.70 crore vs. Rs 38.73 crore in Q2-2013, a 126 per cent leap y-o-y, and eight per cent higher than the Rs 80.94 crore for Q1-2014.

     

    Correspondingly, its cable business EDITDA for Q2-2014 at Rs 85.05 crore was 134 per cent higher than the Rs 36.36 crore for Q2-2013 and seven per cent higher than the Rs 79.39 crore for Q1-2014.

     

    Consolidated PAT at Rs 11.18 crore for Q2-2014 was up by about 10 per cent higher as compared to the PAT of Rs 10.15 crore for Q1-2014. The company says that its cable business PAT stood at Rs 9.64 crore for Q2-2014.

     

    Consolidated expense at Rs 224.13 crore for Q2-2014 was 21.54 per cent higher than the Rs 184.66 crore for Q2-2013, and 2.3 per cent lower than the Rs 229.69 crore for Q1-2014. Den Network paid 18.4 per cent more towards content cost at Rs 90.54 crore for Q2-2014 as compared to the Rs 76.5 crore in Q2-2013 and the 6.5 per cent higher than the Rs 85.01 crore in Q1-2014.

     

    Depreciation and amortisation cost at Rs 37.04 crore for Q2-2013 was more than double (2.14 times) the Rs 17.29 crore for Q2-2013 and 11.47 per cent higher than the Rs 33.23 crore for Q1-2014. Den Networks has reported a foreign exchange loss of Rs 5.96 crore in its cable business for 2-2014.
    Den Networks claims that there is a significant demand for its digital cable services in its existing Phase III and IV markets. The pace of seeding is expected to pick up in the next few months. It also says that it is witnessing a lot of interest from smaller players (MSOs and LCOs) from Phases III and IV areas looking to align themselves with it and is receiving several such requests on a regular basis.

  • DEN doubles borrowing cap to Rs 20 bn; Q3 consolidated up 10% QoQ

    DEN doubles borrowing cap to Rs 20 bn; Q3 consolidated up 10% QoQ

    MUMBAI: With digitisation firm on the government‘s agenda, DEN Networks Ltd, a leading multi-system operator (MSO), has got the board approval to double its borrowing power from existing Rs 10 billion to Rs 20 billion.

    The company also said on Tuesday that its consolidated net profit for the third quarter ended 31 December rose 10 per cent to Rs 171.7 million from Rs 155.9 million in the previous quarter, in line with revenue growth.

    Incidentally, this quarter saw the rollout of the first phase of digitisation in the four metros. The government stuck to the deadline of 1 November, though digitisation got disrupted in Chennai due to a Madras High Court order.

    DEN’s consolidated Ebidta for the three-month period beginning 1 September jumped 22 per cent to Rs 603.9 million from Rs 308.4 million in the trailing quarter.

    The company’s consolidated net revenue grew 12 per cent to Rs 2.41 billion from Rs 2.16 billion in the previous quarter. Its expenditure during the quarter increased to Rs 1.81 billion from Rs 1.66 billion due to rise in operation expenses.

    DEN’s net profit from cable business was up 19 per cent to Rs 159.5 million from Rs 133.9 million in the previous quarter. Its operating profit rose 26 per cent to Rs 585.3 million from Rs 463 million.

    Its revenues from the cable business grew 13 per cent to Rs 2.29 billion from Rs 2.02 billion in the previous quarter.

    DEN’s net profit from distribution business was Rs 12.4 million on income of Rs 123.3 million and expenditure of Rs 104.7 million.

    On the first phase of digitisation, the MSO said it along with its affiliates seeded over 1.8 million set-top boxes (STBs) in Delhi, Mumbai and Kolkata. About half of these STBs were deployed in the third quarter.

    DEN has presence in 23 of the 38 cities where digitisation will happen in phase 2, including all the seven cities of Uttar Pradeh, five towns in Maharashtra, 3 in Gujarat, two each in Rajasthan and Karnataka, and 1 each in Bihar, Jharkhand, West Bengal and Haryana. Den said it has already seeded over 600,000 STBs in these markets.

    The company said it was also gearing to build a high speed broadband internet service and offer bundled double play and triple play services to consumers in fully digitised markets over the next few quarters.