Tag: Den Networks Limited

Den Networks disputes Rs 38 crore GST orders, plans legal appeal

MUMBAI: Den Networks Limited has found itself in the middle of a tax showdown, with authorities in Lucknow and Kochi slapping it with two Goods and Services Tax (GST) penalties totalling nearly Rs 38 crore. The company, however, has strongly refuted the allegations, calling the orders erroneous and confirming plans to file appeals against them.

Dismissing both allegations, Den Networks has reiterated that these tax demands do not impact its day-to-day operations, and that the financial exposure is limited to the penalty amounts. The company remains confident of a favourable outcome in the appeals process. With a legal battle looming, the GST dispute is far from settled Den Networks is preparing to make its case, challenging the tax authorities’ interpretation in an attempt to reverse the penalties and clear its name.

The first order, issued by the CGST and Central Excise Commissionerate, Lucknow, on 31 January 2025, imposed a penalty of Rs 4.75 crore under Section 74 of the Central Goods and Services Tax Act, 2017 and the Uttar Pradesh Goods and Services Tax Act, 2017. Tax authorities claimed that Den Networks had wrongfully adjusted deferred revenue for FY 2017-18, allegedly leading to lower GST payments. The company insists this assessment is incorrect.

The second order, passed by the CGST Kochi Commissionerate on 3 February 2025, demanded a staggering Rs 33.25 crore in differential tax, along with an equal penalty amount under Section 122(2)(b) read with Section 74(9) of the Central Goods and Services Tax Act, 2017, and corresponding Sections of the Kerala State Goods and Services Tax Act, 2017, for the period from July 2017 to March 2022. The dispute centres on how GST should be applied—tax authorities argue it should be charged on the total amount collected by local cable operators (LCOs) from subscribers, rather than on the revenue received by Den Networks from LCOs. The company maintains that it has calculated and discharged GST correctly as per regulatory norms.

February 21, 2025
Den Networks reports higher profits despite lower revenue in Q1-2021

BENGALURU: Indian cable TV and broadband services provider Den Networks Ltd (Den) reported 3.8 percent lower consolidated revenue for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) as compared to the corresponding year ago quarter (Q1 2020). Consolidated operating profit (simple EBITDA) for the period under review increased 55.2 percent in Q1 2021 as compared to Q1 2020. The company’s profit after tax (PAT) more than quadrupled (increased by 308 percent) y-o-y in Q1 2021. The company has pared its expenses in Q1 2021 as compared to Q1 2020.

Den reported consolidated operating revenues of Rs 301.31 crore and Rs 313.15 crore for Q1 2021 and Q1 2020 respectively. Consolidated EBITDA for Q1 2021 was Rs 63.93 crore, for Q1 2020 it was Rs 41.19 crore. PAT for the period under review was Rs 58.32 crore as compared to Rs 14.31 crore in the corresponding year ago quarter. Total Income (revenue) for the period was flat at Rs 364.47 crore as compared to Rs 364.40 crore in Q1 2020.

Segment Revenue

Den Networks has two major segments in Cable Business and Broadband Business.

Den reported 3.6 percent decline in total revenue for its Cable Business in Q1 2021 at Rs 284.47 crore as compared to Rs 295.17 crore in Q1 2020. The company reported 6.93 crore operating result for the quarter under review as compared to an operating loss (negative result) of Rs 11.07 crore for Q1 2020.

Den reported 14 percent growth in subscription revenue for its Cable Business for Q1 2021 at Rs 195 crore as compared to Rs 171 crore in the corresponding quarter of the previous year. Placement/Marketing Income declined 37.1 percent y-o-y in Q1 2020 to Rs 61 crore from Rs 97 crore. Activation Income increased 4.3 percent in Q1 2020 to Rs 24 crore from Rs 23 crore in Q1 2020. PAT for the segment more than tripled to Rs 65 crore in Q1 2020 as compared to Rs 20 crore for Q1 2020.

Den reported 6.3 percent lower Broadband Business operating revenue at Rs 16.85 crore in Q1 2021 as compared to Rs 17.98 crore in Q1 2020. The segment’s operating loss (negative result) increased to Rs 6.32 crore in Q1 2020 as compared to operating loss of Rs 5.45 crore in Q1 2020.

Let us look at the other numbers reported by Den for Q1 2021

Total expenditure for Q1 2021 declined 12.8 percent to Rs 302.95 crore from Rs 347.32 crore in Q1 2020. Content costs declined 15.2 percent in the quarter to Rs 135.20 crore from Rs 159.41 crore in the corresponding year ago quarter. Placement fees declined 62.8 percent to Rs 3.59 crore in Q1 2021 as compared to Rs 9.65 crore in Q1 2020. Employee benefits expense for Q1 2021 increased 5.1 percent y-o-y to Rs 23.92 crore from Rs 22.75 crore in Q1 2020. Finance costs in Q1 2021 declined 87.2 percent to Rs 2.26 crore from Rs 17.64 crore. Other expenses declined 12.8 percent in Q1 2021 to Rs 74.69 crore from Rs 80.15 crore in Q1 2020.

July 21, 2020
Den Networks reports profitable Q3 2020

BENGALURU: Indian cable network and broadband company Den Networks Ltd (Den) reported consolidated profit after tax (PAT) of Rs 12.28 crore for the quarter ended 31 December 2019 (Q3 2020, quarter or period under review) as compared to a loss of Rs 31.21 crore for the corresponding year ago quarter (Q3 2019, y-o-y) and 28.9 per cent higher than the Rs 9.53 crore for the immediate trailing quarter (Q2 2020, q-o-q). Consolidated EBITDA for the quarter at Rs 58.28 crore was 21.2 per cent higher y-o-y than Rs 48.1 crore and was 20.1 per cent higher q-o-q than Rs 48.51 crore.

Den reported consolidated operating revenue of Rs 318.08 crore, which was 3.1 per cent higher y-o-y, but was 4.3 per cent lower q-o-q than Rs 332.42 crore.

Segment revenue

The company has two segments – Cable Distribution Network (Cable) and Broadband.

Cable revenue increased 3 per cent y-o-y in the quarter under review to Rs 300.46 crore from Rs 291.59 crore, but declined 4.6 per cent q-o-q from Rs 314.92 crore. Cable segment operating result for Q3 2020 was 6.23 crore as compared to a loss of Rs 8.95 crore for Q3 2019 and a loss of Rs 21.14 crore for the immediate trailing quarter.

Major revenue heads for the Cable business are Subscription, Placement, Other operating income and Activation. Cable Subscription revenue in Q3 2020 increased 10 per cent y-o-y to Rs 189 crore from Rs 172 crore and increased 6 per cent q-o-q from Rs 178 crore. Placement revenue increased 8 per cent y-o-y to Rs 87 crore from Rs 81 crore but declined 1 per cent q-o-q to Rs 88 crore. Other operating income in Q3 2020 declined 52 per cent y-o-y to Rs 6 crore from Rs 13 crore and declined 68 per cent q-o-q from Rs 19 crore. Activation revenue declined 29 per cent y-o-y to Rs 18 crore from Rs 25 crore and declined 39 per cent q-o-q from Rs 29 crore.

Broadband revenue increased 4.7 per cent y-o-y in Q3 2020 to Rs 17.62 crore from Rs 16.82 crore and increased 0.7 per cent q-o-q from Rs 17.50 crore. The segment reported a lower operating loss result for Q3 2020 at Rs 5.4 crore and a loss of Rs 6.6 crore for Q3 2019 and a loss of Rs 5.1 crore for Q2 2020.

Let us look at the other results posted by Den for Q3 2020

Consolidated total expenses for Q3 2020 at Rs 321.63 crore was 4.8 per cent lower y-o-y than Rs 337.84 crore and was 11.9 per cent q-o-q lower than Rs 365.27 crore. Consolidated content costs in Q3 2020 declined 4.7 per cent y-o-y to Rs 141.60 crore from Rs 148.65 crore and was 11.2 per cent lower q-o-q than Rs 159.45 crore.

Consolidated placement fees at Rs 1.08 crore during the quarter under review was 89.2 per cent lower y-o-y than Rs 9.99 crore and was 76.2 per cent lower q-o-q than Rs 4.54 crore. Consolidated employee benefits expense for Q3 2020 at Rs 23.72 crore was almost flat (down 0.3 per cent y-o-y and down 0.2 per cent q-o-q) than Rs 23.8 crore in Q3 2019 and Rs 23.8 crore in Q2 2020.

Consolidated finance costs during the quarter decreased 9.7 per cent y-o-y to Rs 4.38 crore from Rs 13.88 crore and declined 30.6 per cent q-o-q from Rs 6.31 crore. Consolidated other expenses in Q3 2020 increased 19.9 per cent y-o-y to Rs 93.39 crore from Rs 77.87 crore but declined 2.9 per cent q-o-q from Rs 96.15 crore.

January 16, 2020
Den Networks CEO SN Sharma takes over from Hathway’s Rajan Gupta as AIDCF president

New Delhi: All India Digital Cable Federation (AIDCF), the apex body of digital cable television players, announces the appointment of Mr. S N Sharma (CEO – Den Networks Limited) as the new President of the Federation with effect from 1st April 2019 post expiration of term of Mr. Rajan Gupta – current President.

Mr. Gupta commented that, “I am delighted to handover the presidency to Mr. Sharma. It had been an event filled last couple of years at AIDCF, where we successfully migrated into the digital regime and ensured that New Tariff Regime becomes a reality, thereby empowering the consumers. I would like to thank all the members of AIDCF, without whose support this journey would not have been possible” Commenting on his appointment as the new AIDCF President, Mr. S.N. SHARMA said, “It is an honour for me to take the baton of leading AIDCF from Mr. Gupta and carrying it forward in the direction of realizing ‘The dream of Digital India’. All the esteemed members and I will continue to work as a team to resolve the issues and enhance the overall growth of Cable Television. Our priority will be making the new Tariff Regime hassle free so that that there is no inconvenience to the consumers. We will encourage and value the constructive suggestions and feedbacks.

April 1, 2019
Reliance Jio acquires another 12% of Den Networks

BENGALURU: Under disclosures of SEBI Regulations for Substantial Acquisitions of Shares and Takeovers (SAST), three Reliance Jio companies have informed the stock exchanges that they have increased their holdings in Indian multi system operator (MSO) Den Networks from 66.57 percent to 78.62 percent or increased their holdings by 12.05 percent which translates to roughly 5.75 crore shares. The three Jio companies are Jio Futuristic Digital Holdings Pvt Ltd, Jio Digital Distribution Holdings Pvt Ltd and Jio Television Distribution Holdings Pvt Ltd.

As mentioned by us in October 2018 (http://www.indiantelevision.com/iworld/telecom/ril-close-to-buying-majority-stakes-in-den-hathway-181016) , Reliance Industries Limited (RIL) had announced the following strategic investments through a preferential issue under SEBI regulations and a secondary purchase to acquire a 66 per cent stake in Den Networks Ltd. Reliance Jio Infocomm Limited (Jio) is a mobile network operator owned by Reliance Industries Limited. Besides Den Networks, RIL had also announced strategic investments in the Rajan Raheja-controlled Hathway Cable and Datacom Ltd at that time RIL said that these strategic investments are in furtherance of Reliance’s mission of connecting everyone and everything, everywhere – always at the highest quality and the most affordable price and transforming India’s digital landscape.

March 9, 2019
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.

August 2, 2017
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.

May 23, 2017
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.

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.

December 15, 2016
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.

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.

December 15, 2016
Den Networks consolidated cable, broadband numbers up in Q1-17

BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue post activation increased 9 percent in in the quarter ended 30 June 2016 (Q1-17, current quarter) to Rs 251 crore from Rs 230 crore in Q1-16. Pre-activation revenue in the current quarter increased 3 percent to Rs 215 crore from Rs 209 crore in the corresponding year ago quarter.

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

Den’s Broadband segment revenue more than tripled (3.55 times) in Q1-17 to Rs 18 crore from Rs 5 crore in Q1-16.

Cable segment

Cable subscription revenue increased 13.3 percent y-o-y to Rs 111 crore in Q1-17 from Rs 98 crore in Q1-16. Cable activation revenue increased 69 percent y-o-y to Rs 36 crore from Rs 21 crore. Placement revenue declined 15 percent y-o-y to Rs 87 crore from Rs 102 crore.

Cable segment reported EBIDTA of Rs 53 crore in Q1-17 as against and EBIDTA of Rs 14 crore in the corresponding quarter of the previous year. Please refer to the figure below for Den’s revenue break-up for Q1-7 and Q1-16.

The company reported 98 lakh DAS subscribers for Q1-17, as compared to 72 lakh in the corresponding year ago quarter and 94 lakh in the immediate trailing quarter (Q4-16). Den has a cable subscriber base of 1.3 crore.

Broadband segment

Den reported 329 percent growth in broadband customers in Q1-17 as compared to the corresponding year ago quarter Q1-16. Den reported 1,15,000 broadband customers in the current quarter as compared to 35,000 in Q1-16.

In Q4-16 Den had a broadband subscriber base of about 95,000, hence quarter-over-quarter (q-o-q) broadband subscriber base growth in Q1-17 was 21 percent. Q-o-q broadband revenue increased 20 percent in the current quarter from Rs 15 crore in Q4-16.

Broadband segment’s operating loss (EBIDTA) in Q1-17 was lower at Rs 9 crore as compared to an operating loss of Rs 18 crore in Q1-16.

Consolidated numbers

Den’s consolidated revenue increased 14 percent year-over-year (y-o-y) in the current quarter to Rs 269 crore from Rs 236 crore in Q1-16.

Consolidated loss before tax in Q1-17 was lower at Rs 35 crore as compared to a loss of Rs 48 crore in Q1-16. Net loss in Q1-17 was slightly higher at Rs 52 crore as compared to a net loss of Rs 50 crore in Q1-16.

The company reported positive post activation consolidated EBIDTA of Rs 44 crore for the current quarter as against a negative (operating loss) of Rs 4 crore in Q1-16.

Den’s consolidated total expenditure in the current quarter declined 6.3 percent to Rs 225 crore from Rs 240 crore in Q1-16.

Content costs are a major component of Den’s expenditure – Content costs in the current quarter declined 7.4 percent in the current quarter to Rs 112 crore from Rs 121 crore in the corresponding year ago quarter.

Employee (Personnel) costs declined 19.4 percent in the current quarter to Rs 25 crore from Rs 31 crore in Q1-16. Other operating expenses in Q1-17 increased 2.5 percent to Rs 81 crore from Rs 79 crore.

Goldman Sachs to pick up 1.58 crore Den equity shares

As reported, the company’s existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in DEN up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore.

Note: (1) All numbers mentioned are consolidated unless stated otherwise.

(1.1) 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.

September 21, 2016