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Tag: Den Network

  • Den Network reports 11.5% growth in FY-2015 cable subscription revenue; posts loss

    Den Network reports 11.5% growth in FY-2015 cable subscription revenue; posts loss

    BENGALURU: Den Networks Ltd reported that its cable business subscription revenues net off LCO share grew 11.5 per cent to Rs 966 crore in FY-2015 from Rs 866 core in FY-2014. In the current quarter, cable business subscription revenues net off LCO share grew 13 per cent to Rs 252 crore from Rs 223 crore in Q4-2014.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Including LCO share, Den Networks cable business subscription revenues grew 3.6 per cent to Rs 1093 crore in FY-2015 from Rs 1055 crore in FY-2014. Cable business subscription revenues including LCO share in Q4-2015 declined seven per cent to Rs 265 crore from Rs 285 crore in Q4-2014.

     

    In FY-2015, Den Networks reported loss of Rs 144.01 crore as compared to a profit of Rs 38.40 crore in the previous year. Loss in Q4-2015 was Rs 61.15 crore as compared to a profit of Rs 10.05 crore in the corresponding year ago quarter. Loss in Q3-2015 was slightly higher Rs 62.60 crore

     

    Den Networks says that it added 10 lakh set top boxes (STB) in FY-2015, taking the total STBs deployed to approximately 70 lakh. It says further that its current digital subscriber base in Phase 1 and 2 stood at approximately 51 lakh.

     

    Let us look at the other numbers reported by Den Networks

     

    Den Networks TIO in FY-2015 at Rs 1129.64 crore was 1.2 per cent more than the Rs 1116.69 crore in FY-2014. TIO in Q4-2015 at Rs 270.30 crore was 10.5 per cent lower than the Rs 301.86 crore in Q4-2014, but 0.6 per cent more than the Rs 268.81 crore in Q3-2015.

     

    Total expense (TE) in FY-2015 at Rs 1223.18 crore was 27.2 per cent more than Rs 961.92 crore in FY-2014. TE in Q4-2015 at Rs 323.79 crore was 20.3 per cent more than the Rs 269.18 crore in Q4-2014 and was 2.2 per cent more than the Rs 316.75 crore in Q3-2015. 

     

    The company’s content cost in FY-2015 at Rs 454.52 crore was 22.3 per cent more than the Rs 371.73 crore in FY-2014. Content cost in Q4-2014 at Rs 139.13 crore was 38 per cent more than the Rs 100.85 crore in Q4-2014 and 26.4 per cent more than the Rs 110.06 crore in Q3-2015.

     

    Den’s EBIDTA (without considering other income) in FY-2015 at Rs 92.41 crore was much lower than the Rs 302.17 crore in FY-2014. Q4-2015 EBIDTA was negative Rs 5.97 crore in Q4-2015 as compared to an EBIDTA of Rs 73.18 crore in Q4-2014 and EBIDTA of Rs 0.28 crore in the immediate trailing quarter.

     

    Company Speak

     

    Den Networks CEO Pradeep Parameswaran said, “We are laying the foundation of building a powerful consumer franchise in broadband, cable television and television shopping. Significant investments are being made to bring disruptive consumer offerings to the market. We are augmenting our historical strength in cable operations with high quality talent in all functions. Besides focus on internal changes, I am also hopeful of a stronger collaboration with LCOs’ and other industry partners to take steps for successful execution of digitisation process thus supporting the government push towards digital India. Our excitement in the scale of opportunities and our ability to capture it continues to remain strong.”

     

    “We have seen positive results on subscription revenues and collections in Q4 of the current year. The profitability has been impacted because of the new business initiatives of the company including broadband, TV Shop and Football as we build Den Networks for the future,” added Parameswaran.

  • Q3-2015: Den Network reports 18 per cent y-o-y growth in cable subscription revenue

    Q3-2015: Den Network reports 18 per cent y-o-y growth in cable subscription revenue

    BENGALURU: Den Networks Ltd’s (Den Networks) cable business subscription revenues net off LCO share grew 18 per cent, up 11 per cent y-o-y to Rs 116 crore in the current quarter from Rs 97 crore in Q3-2014 and its cable business operation margin was maintained at 19 per cent q-o-q.

     

    Den added 1,97,000 set top boxes (STB) in Q3-2015, taking the total STBs deployed to approximately 68 lakh. The company said that its current digital subscriber base in phase 1 and 2 is approximately 50 lakh. Digital subscribers are expected to increase significantly with acceleration in non-DAS market informs the company. 

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Den Networks TIO at Rs 269.82 crore in Q3-2015 fell two per cent from Rs 274.26 in Q3-2014 and fell 7.9 per cent from Rs 291.72 crore in the preceding quarter. However, TIO in 9M-2015 at Rs 859.34 crore was 5.5 per cent more than the Rs 814.83 crore in HY-2014.

     

    Den Networks recently launched its high speed broadband service, which is gaining great traction having achieved an average ARPU of Rs 740 per month in Q2-2015. This quarter, Den says that ARPU has improved to Rs 748 per month.

     

    The company also says that its joint venture (JV) with Snapdeal.com has been received extremely well. Within the first month, Den Network claimed in Q2-2015 that the company has clocked an annualised Gross Merchandise Value (GMV) in excess of Rs 50 crore based on the annualised latest daily run rate and was expected to scale significantly as the channel gets distributed across networks. For Q3-2015, the company says that the market place based model now reaches 1.9 crore homes clocking Gross Merchandise Value (GMV) of Rs 100 crore.

     

    Let us look at the other numbers reported by Den Networks:

     

    Total expense (TE) in Q3-2015 at Rs 316.75 crore (117.8 per cent of TIO) was 32.7 per cent more than the Rs 238.63 crore (87 per cent of TIO) in Q3-2014 and was 6.4 per cent more than the Rs 297.81 crore (102.1 per cent of TIO) in Q2-2015. In 9M-2015, TE at Rs 899.48 crore (104.7 per cent of TIO) was 29.8 per cent more than the Rs 692.75 crore (85 per cent of TIO) in 9M-2014.

     

    The company’s content cost in Q3-2015 at Rs 1100.96 crore (40.9 per cent of TIO) was 15.5 per cent more than the Rs 95.33 crore (34.8 per cent of TIO) in Q3-2014 and was 1.1 per cent more than the Rs 108.91 crore (37.3 per cent of TIO) in the immediate trailing quarter. For 9M-2015, content cost at Rs 325.39 crore (37.9 per cent of TIO) was 20.1 per cent more than the Rs 270.88 crore (33.2 per cent of TIO) in 9M-2014.

     

    Den’s placement fee in Q3-2015 at Rs 8.86 crore was 76.1 per cent more than the Rs 5.03 crore in Q3-2014 and 57.4 per cent more than the Rs 5.63 crore in Q2-2015. 9M-2015 placement fee at Rs 19.81 crore was 19.1 per cent more than the Rs 16.64 crore in 9M-2014.

     

    Den’s other expense in Q3-2015 increased 68.6 per cent to Rs 123.32 crore (45.9 per cent of TIO) from Rs 73.15 crore (26.7 per cent of TIO) in the corresponding year ago quarter and was 45.9 per cent more than the Rs 78.61 crore (26.9 per cent of TIO) in the preceding quarter. For 9M-2014, other expense at Rs 272.40 crore (31.7 per cent of TIO) was 27.6 per cent more than the Rs 213.51 crore (26.2 per cent of TIO) in 9M-2014.

     

    Den’s EBIDTA (without considering other income) in Q3-2015 fell to just Rs 0.28 crore as compared to the EBIDTA of Rs 72.26 crore (26.3 per cent of TIO) in Q3-2014 and the Q2-2015 EBIDTA of Rs 40.94 crore (14 per cent of TIO). EBIDTA for 9M-2015 fell by 2.33 times to Rs 98.38 crore (11.4 per cent of IO) from Rs 228.98 crore in 9M-2014.

     

    Other Income for the periods under consideration is as follows: Q3-2015 – Rs 23.94 crore; Q2-2015 – Rs 22.47 crore; Q3-2014 – Rs 22.98 crore; 9M-2015 Rs 64.96 crore; 9M-2014 – Rs 34.42 crore.

     

    The company reported a loss of Rs 62.60 crore in Q3-2015 as against a profit after tax (PAT) of Rs 16.08 crore. The loss in the current quarter was more than thrice the loss of Rs 20.45 crore reported for Q2-2015. The company reported loss of Rs 81.93 crore in 9M-2015 as compared to a PAT of Rs 28.35 crore in 9M-2014.

  • MSOs to put Star’s popular channels in base pack, regional in a-la-carte

    MSOs to put Star’s popular channels in base pack, regional in a-la-carte

    MUMBAI: As the deadline for signing deals with Star India for its channels on reference interconnect offer (RIO) ended on 10 November, MSOs are preparing various options to deal with the altered business plans.

     

    While the network is providing all its channels only on RIO, MSOs are finding out different ways to package the channels. India’s leading MSO Hathway is currently creating new packages that it will roll out soon. Says a source, “We will be redefining our packs and giving revised rates soon. Marketing on the same will commence as well. It will be something new for the trade.”

     

    While the base pack could include the popular channels from its bouquet, the regional channels will only be on a-la-carte. English, sports and others will be categorised in different packs. The channel had initially disconnected signals in October, but now the channels are switched on again.

     

    IMCL’s InCable on the other hand has also followed a similar pattern. The base pack will consist of Star Plus, Life OK and Star Pravah, the latter due to its large presence in the state of Maharashtra. The regional channels such as Star Jalsha, Star Vijay, Asianet, Suvarna etc will be on a-la-carte.

     

    “We have decided to put the popular channels on the base pack for three months to avoid unnecessary system overload due to people calling for it. Slowly, they will also be moved out into a-la-carte once we educate consumers. Soon we will also have proper EPRS, CAS and also net billing,” says IMCL group MD and CEO Tony D’silva. The MSO has taken Star’s incentives for channel penetration by putting three in its base pack.

     

    According to an official from Den Networks, the MSO has not yet signed the deal and is yet negotiating. Advance Multisystem Broadband Communciation (AMBC) in Kolkata will ensure all 26 channels will be given to consumers while another Kolkata based MSO said that the agreement with Star has been signed but it is evaluating the incentive schemes.

  • Over 100 additional MSOs get 10 year licences, 16 fail to get clearance

    Over 100 additional MSOs get 10 year licences, 16 fail to get clearance

    NEW DELHI: A total of 104 multi-system operators (MSOs) all over the country have been granted permanent registration for 10 years to operate the digital addressable system while the licences of 16 MSOs have been cancelled.

     

    The MSOs in both the approved and the cancelled list had been given provisional permission earlier.

     

    Those who have got permission include IndusInd Media and Communications, Hathway Cable & Datacom, Manthan Broadband, Den Network, Home Cable, Digicable Network, Delhi Distribution Company and Asianet Satellite Communications.

     

    Kolkata based MSO Digicable Communications has been denied permission after the break-up of the joint venture with Mumbai based Digicable Networks, which has received permission for Greater Mumbai, National Capital Territory of Delhi and Greater Kolkata.

     

    Digicable Network India managing director & CEO Jagjit Singh Kohli said that they would ask for a stay on MIB’s decision to cancel the licence in the court. 

     

    Other cancelled permissions include Skynet Digital Services, Jai Maa Vaishno Entertainment, Intermedia Cable Communications, Supersonic Networks and Godfather Communications.

       

    Industry sources said that the approved list was in addition to the 140 whose names had been approved in March last year.

     

    The Ministry website mib.nic.in has added information about the approved MSOs, listing the areas for which they have been given permission.

     

    The website also contains the reasons in brief for the denial of permission to those which have failed to get the licences. In most cases, it is due to failure to get clearance from the Home Ministry.

     

    The new list is the outcome of Open Houses held by the Ministry with various MSOs, while some have come as a result of court cases. 

  • Q3: Digitisation pushes up MSOs’ subscription revenue

    Q3: Digitisation pushes up MSOs’ subscription revenue

    MUMBAI: Transparency in subscriber numbers with the digitisation of cable TV services in 42 cities is translating into higher subscription revenues for multi-system operators.

     

    The benefit of digitisation is still to fully reflect in revenues of MSOs as billing to cable TV subscribers is still to be completed in the 38 cities that were digitised in Phase II.

     

    Digitisation has had an added impact on the MSOs financials. Their carriage or placement revenue earned from broadcasters is decreasing.

    MSOs expect carriage revenue to rise as new channels get launched.

     

    Carriage Revenue

    Hathway Cable & Datacom’s income from placement of channels fell 14 per cent to Rs 73.6 crore in the third quarter ended 31 December, 2014. The share of placement revenue in Hathway Cable’s total revenues fell to 31 per cent in the third quarter from 41 per cent a year ago.

     

    Den Networks too saw softening of its placement revenues to Rs 117.8 crore, down nearly 2 per cent from Rs 119.90 crore a quarter earlier. Den Network’s placement revenues a year ago are not available.

     

    Subscription Revenues

    Digitisation gains led Den Networks revenues to rise to Rs 105 crore in the third quarter, up 6 per cent from Rs 99.11 crore a quarter earlier.

     

    The quarter-on-quarter increase in subscription revenues for Hathway Cable was sharper. Its subscription revenues rose to 74 per cent to Rs 119.1 crore in the third quarter from Rs 68.5 crore a quarter earlier.

     

    Hathway Cable’s subscription revenues rose as it completed billing for a substantial percentage of its cable TV customers in the cities covered under the Phase II of digitisation. As a result, its average revenue per month per subscriber too has increased substantially, an analyst said.

     

    Hathway Cable says with its focus on collections, the company has witnessed continued traction in the pace of subscription collections into January 2014.

     

    SITI Cable Network saw its total revenues in the third quarter rise 42 per cent to Rs 177.3 crore from Rs 124.7 crore a year ago.

    SITI Cable CEO V D Wadhwa says, “We gained further momentum in the third quarter of fiscal 2014.”

     

    Direct-To-Home TV

    Dish TV’s revenues rose 3% quarter on quarter to Rs 6,128 mn in the third quarter but its EBITDA fell 1.6% quarter on quarter to Rs 135.50 crore. The company’s operating profit was down as its content cost rose and selling, general and administrative expenses increased as it tapped benefits flowing from digitisation.

    Dish TV added net 2,20,000 households in the third quarter taking its subscriber base to 11.2 million.

    Analysts expect Dish TV to reap higher benefits of digitisation in Phase III and IV starting 1 October, 2014.

     

    In the case of Bharti Airtel’s DTH business, the multiplier impact of increased customer additions and higher realisations during the quarter, pushed up revenues by 25.8 per cent to Rs 538.4 crore from Rs 428 crore a quarter earlier.

     

    Leveraging economies of scale, EBITDA for the quarter increased to Rs 97 crore from Rs 14.7 crore a year earlier. Consequently, Airtel Digital TV’s EBIDTA margin improved significantly to 18.0 per cent in the third quarter from 3.4 per cent a year earlier.

     

    During the current quarter, the company incurred a capital expenditure of Rs 110.90 crore in DTH services. The cash burn during the quarter at Rs 13.9 million was significantly lower Rs 120.40 crore a year ago.

     

    Airtel DTH added 2,35,000 net subscribers in the third quarter to take its total subscriber base to 88,07,000. Its average revenue per user in the third quarter was Rs 207. 

  • Silverline Television Network to seed 25 lakh DEN STBs in WB

    Silverline Television Network to seed 25 lakh DEN STBs in WB

    KOLKATA: West Bengal is embracing the digitisation process open heartedly. So while earlier the MSOs from the state got together to speed up the gross billing in the city, now Silverline Television Network (STN), which distributes the services of DEN Cable TV in West Bengal, plans to seed close to 25 lakh set top boxes (STBs) in the state by December, 2014 in Digital Addressable System (DAS) phase III and IV areas.

     

    Silverline Television Network, a joint venture between DEN (51 per cent) and Silverline Broadband Services (49 per cent) was formed in 2011. STN has already installed four lakh STBs in the state in DAS Phase I and II with an investment of 150 crore. For the next installment, it has earmarked an investment of Rs 300 crore, which alongside the cost of the STBs, will also be used in increasing its network and fibre connectivity in the state.

     

    “We have seeded 3.60 lakh STBs in the Kolkata Municipal Area area and another 40,000 in the rest of West Bengal including 24 North Parganas and Hooghly. In phase III and IV of digitisation, we plan to install approximately 25 lakh more set top boxes in the state. By December 2014, we want to reach the target of 30 lakh STB,” remarked STN director Apurba Banerjee optimistically as he spoke about strengthening its presence within the state. “Our connectivity has already reached Siliguri, Bankura, Raichak, Bangaon and a part of Diamond Harbour,” he added.

     

    The company has one digital headend at present and offers 280 channels. When quizzed about the most popular package in phase I area, that is the KMC area, he said, the monthly subscription available at Rs 180 was quite popular initially. However, since TEN Sports wasn’t available in that, many switched to the Rs 230 monthly package.

     

    The cable TV analysts say the Phase III and IV of DAS is going to be smoother and easier as consumers in smaller towns have already started enquiring about the STB. “Going forward, it will be a smooth journey for DEN to install 30 lakh STBs in West Bengal,” remarks an analyst.

     

    DEN, a cable TV distribution company, reaches an estimated 13 million households in over 200 cities across 13 key states in India, like in Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, Madhya Pradesh and Uttarakhand among other markets. DEN Networks has seeded around 5 million set top boxes.

  • TRAI extends CAF deadline to 15 December

    TRAI extends CAF deadline to 15 December

    MUMBAI: The multi system operators (MSOs) have time till 15 December to submit Consumer Application Forms (CAFs). The Telecom Regulatory Authority of India (TRAI) principal advisor N Parameswaran has shown forbearance and given the MSOs another 15 days to submit 100 per cent CAFs. The earlier deadline to submit CAFs was today, 20 November.

     

    The extension comes after Parameswaran’s meeting with the national MSOs held today in New Delhi. Though the MSOs had their concerns to address, in the meeting that lasted for one and a half hours, TRAI concentrated on two key issues — one, meeting the deadline for submitting CAFs for phase II by 15 December, and another, implementing gross billing from December for phase I.

     

    The meeting was attended by Hathway Cable and Datacom, Siti Cable, InCable, DEN Network, Digicable and GTPL.

     

    “We spoke at length on the issues that each MSO faces in order to comply with the deadline,” says a MSO on request of anonymity. “With LCOs not cooperating with us for submitting duly filled CAFs, and also the ongoing court cases that LCOs have filed to ensure the consumer stays under them, achieving the deadline is difficult,” he says.

     

    “The regulator will show leniency in states like Hyderabad, Madhya Pradesh and Gujarat that face problems, but in others it will not act as a Santa Claus if the deadline is not met,” says IndusInd Media and Communications Limited MD Ravi Mansukhani.

    According to Mansukhani, the bills are being generated by the MSOs, but the LCOs are not delivering them to the subscribers. “The TRAI has asked us to ensure that the bills should reach the subscribers by December. The regulator has asked us to either convince the LCO to deliver the bills to subscribers or to send them directly to each subscriber,” says Mansukhani.

     

    About 30 to 90 per cent CAFs have been collected so far. “The regulator has taken an average of this figure, which is around 50 per cent, and has said it is not enough. We have been asked to comply with this final deadline,” he mentions.

     

    The MSOs spoke at length on improving their relations with LCOs. “We want each party to realise and reap the benefits of digitisation,” states a MSO.

     

    The MSOs also raised logistic issues they were facing for collecting CAFs. “Unlike phase I which involved the big five players, phase II has several small players involved as well. And this is creating hindrance,” opines Mansukhani.

     

    The MSOs only have a few days to convince the LCOs to get ahead with both CAFs and billing. “It is a tough task, but we will have to give our best,” concludes Mansukhani.

     

    Seems like a difficult Christmas for the MSOs if they fail to meet deadlines.

  • Channel UFX signs on Aidem Ventures for its ad sales

    Channel UFX signs on Aidem Ventures for its ad sales

    MUMBAI: Channel UFX, the youth entertainment and music channel catering to the South market with its edgy, across-the-board programming mix, has commissioned its ad sales duties to Aidem Ventures.

    Usman Faheed feels with a large team of people who are media as well as genre specialists Aidem Ventures will help them become a stronger brand

    Channel UFX offers a mélange of meticulously crafted programming from international to Bollywood and South Indian music. It maintains competitive standards with a dash of Indian flavour. VJ Paloma, Sherif, Rochelle and Craig hosting talk shows, reality shows, game shows, celebrity interviews, gossip segments, automobile, technology, food and fitness features, exciting contests, trivia, laugh out loud segments and voyages into the lives of the rich and famous, is what Channel UFX is all about. It is a whole new world of boundless entertainment and spectacular visual extravaganza. It is a one-stop-channel for all things Youth.

    The 2013 line-up consists of four fresh, new shows over and above the regular line-up. There’s a show called Tech In. Mobiles, gaming consoles, software, mp3 players, notebooks is what this show is all about. It features new arrivals; tips on how to care for gadgets and an exclusive gaming segment featuring a variety of games that are currently in vogue.

    Vikas Khanchandani believes the channel is going to reconstruct market boundaries to create and capture an enormous new segment

    Another new show Voices allows people to record their video requests, ask questions to celebrities using the cameras on their cell phones or computers. The channel then plays these videos along with the names of those participating, followed by video clips of the celebrities responding to those questions. On Ground features different colleges, their structure and geography, moves onto student achievers and talents and lastly identifies the current celebrities and personalities who passed out of the same college. The Boss is another exciting new show about successful businessmen, entrepreneurs and professionals discussing their vision, obstacles faced, future plans etc.

    As of today, the channel reaches out to 95 per cent of Tamil Nadu. It is available on four out of the six key DAS operators in Chennai. Outside of Chennai, Channel UFX is available on Arasu Cable. In Kerala, it is available on KCCL which covers 60 per cent of the market. In Karnataka, the channel is available to two major networks i.e. DEN Network & All Digital. As for Andhra Pradesh, the channel is currently available in Vishakhapatnam and will soon be distributed across the state.

    Internationally, Channel UFX has been made available on E-Vision starting today. E-Vision covers all of the Middle East. Our channel has been recording a good amount of online viewership by viewers in US and UK as well.

    Channel UFX is an exciting and vibrant option for brands looking at targeting the 15-34 age groups says Nikhil Sheth

    Announcing the association, Channel UFX MD Usman Faheed said, “The Aidem team possesses a great amount of expertise in every business facet be it developing the right positioning & pricing strategies for the media, developing sponsorship packages, identifying all possible revenue streams to going out and generating revenues. From news and infotainment to movies, general entertainment and music, they are a large team of people who are media as well as genre specialists. We are glad to be associated with them.”

    Aidem Ventures director Vikas Khanchandani added, “Channel UFX is a very interesting channel that not just entertains the youth but also encourages them to be informed, global citizens. Its broad appeal taps into the tastes and interests of every young adult.This channel is going to reconstruct market boundaries to create and capture an enormous new segment.The team is very excited about the channel.”

    “UFX is unparalleled youth destination that is all set to disrupt the status quo of marketing to the youth in South India. There isn’t a similar option available in South India. Considering South India is the most literate zone in the country, Channel UFX is an exciting and vibrant option for brands looking at targeting the 15-34 age groups,” said Aidem Ventures business head Hindi Entertainment & Niche channels Nikhil Sheth.