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Tag: MSO

  • Q1-2016: Hathway YoY revenue up 6%; Broadband subscription revenue up 56%

    Q1-2016: Hathway YoY revenue up 6%; Broadband subscription revenue up 56%

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 5.7 per cent growth in standalone Total Income from Operations (TIO) in Q1-2016 (quarter ended 30 June, 2015, current quarter) to Rs 264,41 from Rs 250.11 crore in Q1-2015 and was 2.1 per cent lower than the Rs 270.03 crore in Q4-2015.

     

    The company’s EBIDTA in the current quarter declined 25.4 per cent to Rs 32.73 crore (12.8 per cent margin) as compared to the Rs 43.87 crore (17.5 per cent margin) in the corresponding year ago quarter but was 5.7 per cent more than the Rs 30.98 crore (11.5 per cent margin) in the immediate trailing quarter.

     

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

     

    Hathway’s loss in the current quarter widened to Rs 43.91 crore as compared to the Rs 0.93 crore in Q1-2015, but was considerably lower than the Rs 76.99 crore in Q4-2015.

     

    Subscription numbers

     

    Hathway’s television subscription revenue in Q1-2016 declined five per cent to Rs 105.5 crore as compared to the Rs 111 crore in Q1-2015 and declined 12.7 per cent as compared to the Rs 120.9 crore in Q4-2015. The company says that it has deployed one lakh set top boxes, taking its digital subscriber base to 86 lakh or 72.9 per cent of its total cable TV subscriber base of 118 lakh in the current quarter.

     

    Broadband subscription revenue in Q1-2016 at Rs 65.1 crore improved sharply by 56.5 per cent as compared to the Rs 41.6 crore in Q1-2015 and increased 12.8 per cent as compared to the Rs 57.7 crore in Q4-2015. The company says that it has added 50,000 broadband subscribers in Q1-2016, and claims a broadband subscriber base of 4.6 lakh, of which 1.7 lakh are under Docsis 3.0. Broadband ARPUs increased from Rs 530 to Rs 577 (exit Q1FY16) says Hathway.

     

    Hathway reported Phase I ARPU at Rs 100 (net of tax) and Phase II ARPU at Rs 76 (net of tax) in the current quarter as compared to Rs 67 (net of tax) in Q4 FY15.

     

    Let us look at the other numbers reported by Hathway

     

    Hathway’s standalone Total Expenditure in Q1-2016 increased 14.5 per cent to Rs 290.87 crore (110 per cent of TIO) as compared to the Rs 254.10 crore (101.6 per cent of TIO) in Q1-2015 but was 5.5 per cent lower than the Rs 307.66 crore (113.9 per cent of TIO) in Q4-2015.

     

    Standalone Pay Channel cost in Q1-2016 increased 8.8 per cent to Rs 93.32 crore (35.3 per cent of TIO) as compared to the Rs 85.81 crore (34.3 per cent of TIO) in Q1-2015 but was 13.1 per cent lower than the Rs 107.34 crore (39.8 per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in Q1-2016 increased 18.3 per cent at Rs 17.21 crore as compared to the Rs 14.55 crore in Q1-2015, and increased 1.2 per cent as compared to the Rs 17.01 crore in Q4-2015.

  • Den denies pirating Sun TV signals in Gurgaon & Ghaziabad

    Den denies pirating Sun TV signals in Gurgaon & Ghaziabad

    NEW DELHI: Den Networks has denied that it is distributing the signals of Sun Distribution Services Pvt. Ltd. (Sun) meant for Delhi, in Gurgaon and Ghaziabad as well.

     

    This assertion was made by Den counsel Gaurav Kaushik in the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) in response to an application filed by Sun.

     

    Listing the matter for 13 August, TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava gave Den the option to file a reply to the application.

     

    The miscellaneous application was filed by Sun, which is the respondent in the pending case by Den.

     

    Sun alleged that the petitioner Den was indulging in piracy of its signals in as much as though under the interconnect agreement, it is authorised to transmit the signals only within the territory of Delhi, but it was transmitting Sun’s signals in Gurgaon and Ghaziabad, that is beyond the area under the interconnect agreement.

  • Q1-2016: Den Networks revenue down 11%, posts net loss of Rs 52 crore

    Q1-2016: Den Networks revenue down 11%, posts net loss of Rs 52 crore

    BENGALURU: Den Networks Ltd (Den Networks) reported lower Total Income from operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) at Rs 265.60 crore, 11.1 per cent less than the Rs 298.81 crore in Q1-2015 and 1.7 per cent lower than the Rs 270.30 crore in Q4-2015. 

     

    The company’s loss in the current quarter at Rs 51.89 crore was lower than the Rs 61.15 crore reported in the immediate trailing quarter Q4-2015. The company had posted a profit of Rs 1.12 crore (0.4 per cent margin) in the corresponding year ago quarter – Q1-2015.

     

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

     

    However, there were a few silver linings in the in the gloomy financial picture. Den’s Broadband revenue increased sharply to Rs 5.21 crore against Rs 1.06 crore in Q1-2015. Den, through a wholly owned subsidiary has participated in India Soccer League through the Delhi Dynamos FC. The company says that the response to the ISL is unprecedented and has given a huge advantage to the Den brand. Soccer revenue flow has started in current quarter at Rs 93 lakh, reveals Den.

     

    Some of Den Networks operational highlights in the current quarter include the fact that Den says that it has seeded 20 lakh boxes in phase III markets ahead of December 2015 deadline. It claims a 21 per cent market share in India’s digital cable subscribers (25 per cent in Phases 1 and 2). Further, the company’s Cable EBITDA improved by 26 per cent from Rs 14 crore in Q4-2015 to Rs 18 crore in the current quarter.

     

    Den Networks’ Broadband reach has increased 50 per cent in terms of number of homes passed and subscribed and broad band ARPU is Rs 760. Also, the company reports a strong growth in Den-Snapdeal clocking with the venture clocking an annualised GMV of Rs 144 crore in the current quarter as compared to the Rs 117 crore in previous quarter.

     

    Den Network’s operating loss (EBIDTA) in the current quarter was lower at Rs 4.67 crore as compared to the Rs 5.97 crore in Q4-2015. The company had reported a positive EBIDTA of Rs 57.16 crore (19.1 per cent margin) in the corresponding year ago quarter.

     

    The company’s Total Expenses in Q1-2016 at Rs 320.33 crore (120.6 per cent of TIO) was 12.4 per cent higher than the Rs 284.93 crore (95.4 per cent of TIO) in Q1-2015, but was one per cent lower than the Rs 323.70 crore (119.8 per cent of TIO) in Q4-2015. 

     

    Content cost in Q1-2016 at Rs 136.06 crore (51.2 per cent of TIO) was 27.9 per cent more than the Rs 106.42 crore (35.6 per cent of TIO) in Q1-2015, but was 2.2 per cent lower than the Rs 139.13 crore (51.5 per cent of TIO) in the immediate trailing quarter.

     

    The company’s finance costs in Q1-2016 declined 7.8 per cent to Rs 18.27 crore (6.9 per cent of TIO) as compared to the Rs 19.82 crore (6.6 per cent of TIO) in Q1-2015, but was 11.6 per cent more than the Rs 16.37 crore (6.1 per cent of TIO) in the immediate trailing quarter.

     

    Employee Benefit Expense at Rs 34.15 crore (12.9 per cent of TIO) in Q1-2016 was 20 per cent more than the Rs 28.46 crore (9.5 per cent of TIO) in Q1-2015 and was 13.4 per cent more than the Rs 30.12 crore (11.1 per cent of TIO) in Q4-2015.

     

  • Despite roadblocks, India attains 48% digital pay-TV penetration in 8 years: MPA

    Despite roadblocks, India attains 48% digital pay-TV penetration in 8 years: MPA

    MUMBAI: Following a blitzkrieg of cable set-top box (STB) deployment, the digitisation process is taking a breather as operators shift focus from deployment to monetisation in order to ensure growth with profitability. 

     

    As per a recent Media Partners Asia (MPA) report, the pace of India’s pay-TV growth story may appear to be in trouble. However, the report also points out that the process of profitable digitisation typically takes 15-20 years. “In this context, for a market characterised by low average revenue per user (ARPUs), absence of tiering and fragmented last mile cable distribution, India has done well to attain 48 per cent digital pay-TV penetration in eight years,” the report highlights. 

     

    As the industry consolidates and regroups, the current phase of India’s pay-TV industry offers significant opportunities for value creation across various business segments. The key opportunities and levers, according to MPA are as follows:

     

    Cable

     

    Initial STB seeding by cable operators has improved subscriber declarations. Accordingly, with the transition from analog to digital, net ARPUs to multi system operators (MSOs) have grown 10x, to Rs 100 per subscriber per month. However, the current balance sheet position of most MSOs does not justify market expansion. MSOs are therefore compelled to drive operational efficiencies through prepaid services and packages. This helps improve yields from existing digital subscribers. Operators successful in executing such moves will attract refinancing (of existing debt) to expand their consumer offerings with bundled broadband and HD services. Over time, MSOs will also gain more operational control of their networks through majority ownership of joint ventures, and eventually acquire primary points at affordable prices.

     

    At each stage of cable’s evolution, the operating margin for MSOs will grow multifold. The business will remain capital-intensive but as operators grow to become full-service providers, they hold the potential to generate significant returns on capital employed (RoCE). Cable assets should not just be evaluated on reach and the digital subs base but also on their ability to cross-sell high value services such as HD and broadband. Also important is their effective economic interest in the last mile business. As the approach for MSOs shifts from width to depth, structurally, cable platforms will remain concentrated in the top 50 cities. This could change dramatically, however, with the entry of deep-pocketed players such as Reliance Jio and the growth of Headend-in-the-Sky (HITS) platforms, which seek to digitise rural markets.

     

    Several international and long-term financial strategics have also been eyeing partnerships with India’s cable and broadband players. This would help expedite capital as well as technical, operational expertise.

     

    DTH

     

    Since its inception, the DTH sector has made cumulative investments of Rs 275 billion and has been primarily responsible for driving penetration of digital pay-TV. With a base of more than 41 million active subscribers, DTH is poised to benefit from greater economies of scale. In 2014, the DTH industry reported an average EBITDA of Rs 38 per sub per month, with margins at 16 per cent. Moreover, two of the leading operators, Dish TV and Airtel Digital, have already started generating positive free cash flow (FCF). 

     

    Over time, MPA expects the DTH industry at large to generate meaningful FCF through: 

     

    (1) EBITDA margin expansion, as operating leverage starts to play out with subscriber acquisitions in Phase III and Phase IV DAS markets; and 

     

    (2) The composition of incremental revenue becoming driven more by ARPU growth rather than subscriber volumes. Leading players will be able to self finance future growth as well as consolidate the market, creating significant value in the process.

     

    Broadcasting

     

    India’s $3.5 billion broadcast industry remains in a sweet spot. The dual revenue stream of advertising and subscription is expected to benefit from a resurgent economy as well as improved structural dynamics anchored to steady growth in the number of TV households (TVHH) and higher digital pay-TV penetration.

     

    At 60 per cent TVHH penetration, India continues to add seven million new TV homes each year. In other words, at an average family size of 4.5 members, TV is gaining more than 30 million potential viewers each year. Television will continue to offer the highest reach to advertisers, relative to other media. As a result, advertisements will remain the major revenue stream for broadcasters, while an increase in affiliate sales will help stabilise the business and drive profitability.

     

    As of end-2014, total affiliate sales for broadcasters reached $1.1 billion, according to MPA. Significantly, 80 per cent of affiliate revenues were derived from digital subscribers (cable DAS + DTH), while India’s digital pay-TV penetration stood at 48 per cent for the same period. Digitisation has therefore improved subscription yields for broadcasters.

     

    In 2014, an average broadcaster’s yield from digital subscribers stood at Rs 74 per sub per month, against Rs 18 per sub per month from analog. There is therefore upside on affiliate sales, as analog subscribers in Phases III and IV convert to digital.

     

    Besides leading to greater addressability, digitisation has also improved channel distribution economics by lowering the cost of distribution and allowing multiple modes on content delivery (SD, HD SVoD, TVE etc). Although cable continues to account for more than 80 per cent of the carriage and placement (C&P) market in India, since the roll-out of DAS in 2012, the cable net distribution income (or NDI, which is essentially subscription income minus C&P costs) for broadcasters has grown by 137 per cent, to $218 million. 

     

    Going forward, the growth of the broadcasting industry will be driven by:

     

    (1) Expansion in advertising through sub-segmentation and identifying new genres

     

    (2) An increase in the addressable subscriber base with more digital homes

     

    (3) Growth in subscription yields: MPA projects total pay-TV channel revenues for broadcasters to grow from $3.5 billion in 2014 to $6.1 billion by 2019, and to $7.9 billion by 2023.

     

    Based on the relative growth for other markets in Asia- Pacific (ex-China), India is expected to contribute more than one-third of the total channel revenue business in the region by 2023. India’s strategic importance in the region cannot be ignored. For major international networks,

    India already contributes a significant part of their overall APAC business.

     

    Broadband to sow seeds for new digital assets

     

    Significant investments are also being made in India’s fixed and wireless broadband infrastructure. This will help boost internet penetration and improve average broadband download speeds. To address the challenge of last mile connectivity, the Department of Telecom (DoT) is considering joining forces with cable MSOs and local cable operators to help boost broadband penetration in smaller cities and towns. The above proposal, if implemented, can open new avenues for cable broadband.

     

    MSOs have already increased their investments in broadband. As of end-2014, cable broadband subscribers stood at one million, or only 0.3 per cent penetration of total households in the country. However, the entry of new players such as Reliance Jio could dramatically change the fixed broadband landscape. Having recently secured a pan-India MSO license, the company claims to have built the capacity to serve 20 million fiber-to-the-home (FTTH) customers.

     

    Traditional broadcasters are looking to capitalise on the emerging digital opportunity by investing to create long-term assets. For instance, incumbent broadcasters Zee, Star and Sony have started to aggressively invest in delivering branded OTT services. The belief is that online video consumption will complement the existing linear pay-TV business. Eventually, subscription OTT services will take off as bandwidth costs become more affordable and compelling exclusive content is made available for online audiences. Nonetheless, revenue monetisation will require more scalability, as online video revenues are projected to account for not more than 10 per cent of total video industry revenues over the next decade.

  • AIDCF submits recommendations to I&B; asks for removal of 8% AGR on cable broadband

    AIDCF submits recommendations to I&B; asks for removal of 8% AGR on cable broadband

    MUMBAI: Broadband is the way forward for multi system operators (MSOs) who are looking at improving their average revenue per user (ARPU). Understanding the pain areas of the operators who are looking at expanding their broadband base, the newly formed MSO association- All India Digital Cable Federation (AIDCF), recently met the Information and Broadcasting Ministry (I&B) on the issue of 8 per cent AGR being charged on MSOs offering broadband services.

     

    During the meeting a five point recommendation was submitted to the Ministry, which later will be submitted to the Department of Telecommunications (DoT). The recommendation reads:

     

    1)      Remove the 8 per cent AGR applicable for MSOs who are offering broadband services.

     

    2)      It has requested the Government to support MSOs for right of way and protection of infrastructure laid on ground. MSOs offering broadband services feel that the pole charges levied by some states are huge. Also, to set up the broadband service, expensive equipment needs to be installed on streets and poles. According to AIDCF, as of now, there are no rules per se, to protect the equipment which costs anywhere between Rs 7000 to Rs 10,000. The association, through the recommendation, is asking the Government to protect the expensive equipment, so that the MSOs can start installing the infrastructure.

     

    3)      The association has asked the Government to rationalise import duties on network equipment. While the Government has plans for ‘Digital India’ and ‘Make in India’, there are still certain infrastructure related products which are not being manufactured in the country, and hence have to be imported. The association has thus asked the Government to rationalise the import duties being charged on these goods, until someone from the country starts manufacturing them.

     

    4)      It has requested the Government, like in the case of Telecom, to provide infrastructure status to the cable broadband network. With the infrastructure status, MSOs will become eligible for easy bank financing, in addition to overseas fund raising to expand their broadband base.

               

    5)      Allow use of Universal Service Obligation (USO) fund for wireline network rollout in the country.

     

  • Come December, Reliance Jio sojourn set to begin

    Come December, Reliance Jio sojourn set to begin

    MUMBAI: Come December and Mukesh Ambani’s ambitious 4G project – Reliance Jio is all set to sail on its commercial juggernaut.

     

    After expending money to the tune of Rs 10,000 crore in acquiring spectrum rights across the country, the company is targeting to provide 4G services across India with an investment of more than Rs 70,000 crore.

     

    Addressing shareholders in its annual general meeting, Reliance Industries chairman and managing director Mukesh D Ambani said that 2016-17 would be the first full year of commercial operations for Jio.

     

    Ambani also highlighted the path travelled and the roadmap ahead for Reliance Jio.

     

    Read on:  

     

    Current Jio Scenario

     

    Jio is now present in all of the 29 states of India, with a direct physical presence in nearly 18,000 Indian cities and towns. Jio’s wireless footprint extends even further and covers over one lakh villages. The company is expanding this footprint to cover nearly 80 per cent of India’s population by the end of this year.

     

    “Our roadmap is to have 100 per cent national coverage within the next three years. In rural areas, we are prioritizing connectivity to thousands of schools. This is to ensure that the benefit of our broadband initiative is first and foremost felt by students who stand to gain the most by accessing the information highway,” said Ambani.

     

    Jio Progress

      

    Jio has deployed a network of nearly 250,000 route kilometres of fibre optics, thereby creating a future-proof digital backbone across India. Over the next three years, Jio will gather more than double this fibre footprint by deploying fibre optics in the last mile.

    “We are using this deep fibre network also to ramp-up our fibre-to-the-home deployment. By April of next year, we would have connected over one million homes via fibre with a capability of rapidly scaling up in the top 50 cities of India,” he informed.

     

    To support India’s prominent participation in this revolution, Jio has operationalized nearly half a million square feet of its own next-generation Cloud data centers. Work is underway to double this capacity over the next year. The Jio team now comprises 17,500 full-time employees, who have successfully managed dozens of world-class technology partners and more than 150,000 people on the ground to achieve this rollout.

     

    Jio Technical Achievements

     

    “Even as Jio undertakes this mammoth rollout, we continue to take steps to further strengthen its competitive position. Our acquisition of wireless spectrum during the spectrum auctions conducted in March of this year is a case in point,” said Ambani.

     

    In addition to the existing Pan India 2300 MHz spectrum and 1800 MHz in 14 circles, Jio invested over Rs 10,000 crore during this year’s auction to acquire 800 MHz spectrum in 10 circles and 1800 MHz spectrum in six circles.

     

    Total Jio Investment

     

    Having invested a war chest of Rs 34,000 crore in spectrum assets, Jio now has the largest footprint of liberalized spectrum in the country, acquired in an extremely cost effective manner.

     

    “We have an end-to-end initial capacity to serve in excess of 100 million wireless broadband and 20 million fibre-to-the-home customers, with capability to easily expand further as the business scales up. We are currently in the pre-launch testing and stabilization phase of this large and complex network. Over the next few months, we will initiate an extensive beta launch involving millions of friendly customers across all our markets. This beta program will be upgraded into commercial operations around December of this year,” Ambani asserted.

     

    Full Fledged Jio Launch

     

    Ambani said that the financial year 2016-17 will be the first full year of commercial operations for Jio.

     

    It is interesting to note that in China 4G LTE devices as a percentage of overall device shipment has increased from 10 per cent to over 84 per cent in just the past year and Ambani expects a similar trend to emerge in India.

     

    “The combination of Jio’s strong initiatives and a supportive global environment, gives me the confidence that we will see 4G LTE smartphones in India at prices below Rs 4,000 by December of this year,” he said.

     

    Reliance Jio’s Stand

     

    Touting Jio as much more than just telecom services, Ambani said that it is well positioned to emerge as a global Tier-1 telecom operator.

     

    “The three-pronged combination of broadband networks, affordable smartphones and the availability of rich content and applications has created a global information tsunami,” Ambani said.

     

    In April this year, Reliance launched first mobile application, Jio Chat, which is a communication application that integrates chat, voice, video calling, conferencing, file sharing, photo sharing and much more in a single application. In just the first few weeks of operations, Jio Chat acquired over a million active users, without any paid promotions or paid advertisements whatsoever.

     

    Upcoming Jio Apps

     

    Switch-and-Walk app: Allows customers to seamlessly copy everything from their old phone to a new phone. The app will help to sync all contacts, messages, photos, music, media and applications from one phone to another, wirelessly, with a few easy clicks.

     

    Jio Drive: It is an application that will bring powerful cloud capabilities to every smartphone. Using Jio Drive, anyone can store, sync and share any content between their own devices and also with their friends. This is the type of capabilities that only large enterprises are able to provide to their employees. With Jio Drive, every consumer and small business owner will have this ability.

      

    Jio News and Entertainment Innovations

     

    Network 18 has 17 news channels, 14 entertainment channels, in eight languages and a strong set of internet businesses that will be transited to the Jio platform.

     

    “We are working to transform all of these to build and sustain leadership in each of these areas. By 2017-18 it will be the most integrated TV mobile set of content in India. I am privileged- to have Adil Zainulbhai from the Board to guide this initiative,” added Ambani

     

    Jio MSO License

     

    Earlier this year, Jio also applied for a pan-India cable television multi-system operator (MSO) license and has plans to enter the broadcast TV distribution. Ambani told shareholders that he would apprise them of further progress in the forthcoming AGM.

     

    “We have created a legacy free, next-generation voice and broadband network, which can be seamlessly upgraded even to 5G and beyond. We will deliver the gold standard for coverage and capacity, and push to raise the bar even further with small cells. In everything that we have done at Jio, we have lived by the three mantras of ‘Simple, Smart and Secure.’ However, I believe that Jio’s role is much larger than just offering its own services,” Ambani concluded.

  • TDSAT asks Taj TV to restore UCN Cable signals subject to dues payment

    TDSAT asks Taj TV to restore UCN Cable signals subject to dues payment

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) today directed Taj Television to restore signals to UCN Cable Network by tomorrow (10 June, 2015) provided the multi-satellite operator (MSO) pays to it a sum of Rs 1.5 crore within a week from today and another sum of Rs 1.5 crore within four weeks from the date of the first payment.

     

    The vacation bench of TDSAT chairman Aftab Alam and member B B Srivastava made it clear that this on account payment “shall be without prejudice to the rights and contentions of the parties.”

     

    This admitted petition was filed against the disconnection notices and according to the notices, Taj TV’s dues against UCN Cable for Digital Addressable System (DAS) and non-DAS areas amounts to Rs 4.4 crore as on 20 April, 2015. In pursuance of the notices, the respondent has disconnected the supply of its signals to the petitioner on 27 May, 2015.

     

    Apart from the aforesaid on account payment, UCN Cable will also pay Taj TV a monthly subscription fees as per the invoices raised by the respondent. In case of default in payment of the installments and / or monthly subscription fees as per the invoices of Taj TV, it will be open to it to disconnect the supply of its signals without any further orders from the Tribunal.

     

    The matter has been listed on 17 July for further directions. Meanwhile, Taj TV was asked to file its reply within three weeks and UCN Cable to file its rejoinder if any within two weeks of that.

  • 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.

  • I&B slots MSOs & broadcasters’ open house meet on 20th of each month

    I&B slots MSOs & broadcasters’ open house meet on 20th of each month

    MUMBAI: The Information and Broadcasting Ministry (I&B) is taking all steps possible to ensure that the sector prospers and any issue, which hampers the growth is addressed well in time.

     

    The Ministry, over the past several months, has taken active measures to ensure that the various stakeholders of the ecosystem meet from time to time. The meeting is aimed at becoming a forum for the stakeholders to voice their concerns and come up with solutions.

     

    In its latest notice, the Ministry has informed both the broadcasters and MSOs, that the open house meetings, which were earlier held on the 5th of every month, will now take place on the 20th of every month. In case, of the day being a holiday, the meeting will be held on the next day.

     

    The meeting will be held from 11 am to 12 pm, in two different rooms of Shastri Bhawan, New Delhi involving broadcasters and MSOs.

     

    The notice clearly states that only regular employees of the company, well versed with the issue, would be allowed to participate in the open house meeting. “Therefore, the participant shall have to bring authorisation letter from the top executive of the company in his/her name to participate in the open house meeting, along with photo identity card issued by the employer company,” reads the notice.

     

    Companies, which desire to participate in the open house have been asked to send the request of participation detailing out the issues to be discussed latest by 10th of the month to director (BC) through email at dirbc-moib@nic.in

     

    However, for the meeting scheduled on 20 April, issues to be discussed may be sent latest by 13 April.

  • Siti Cable denies fraud as Delhi govt levies penalty for entertainment tax evasion

    Siti Cable denies fraud as Delhi govt levies penalty for entertainment tax evasion

    NEW DELHI: While ‘vehemently’ denying any allegation of tax evasion, multi system operator (MSO) Siti Cable late on Tuesday evening said that in any case the matter was sub judice because it had challenged the levy of entertainment tax and vires of the Delhi Entertainment and Betting Tax Act 1996 in the Delhi High Court.

     

    Noting that it had been depositing the entertainment tax regularly on the basis of collections, Siti Cable also said in an official statement that “the company had not yet received any official communication/ notice about any such order being passed by the Entertainment Tax Department, Government of Delhi.”

     

    The matter is pending vide its Writ Petition of 2014, Siti Cable said. 

     

    The statement said, “The company has come to know from public sources regarding the alleged ex-parte order issued by the Delhi Government, directing Siti Cable Network Ltd. to deposit Rs 33.12 crore as outstanding entertainment tax including interest and penalty. In this context, the company vehemently denies the allegation of tax evasion and would like to clarify that it has been depositing the entertainment tax regularly on the basis of collections. It has already challenged the vires of the Delhi Entertainment and Betting Tax Act, 1996 vide its Writ Petition being No. 427 of 2014, which is subjudice before the Hon’ble Delhi High Court.”

     

    Earlier in the day, sources in the Delhi government revealed that Siti Cable Network, an Essel Group Company, with Subhash Chandra as its chairman of board of directors and CEO, had been directed to deposit Rs 33.12 crore as its outstanding entertainment tax for two years along with interest and penalty within 15 days, by 22 April.

     

    Sources said that the MSO had defaulted in payment of entertainment tax since April 2013.

     

    The company was learnt to have committed a serious illegal act of tax evasion by duping the government despite having collected the amount in the name of taxes from its innocent customers. 

     

    This company has been collecting entertainment tax from 5,36,616 customers at the rate of Rs 20 per month through local cable operators.

     

    In the financial year, 2013-14, Siti Cable was found to have collected around Rs 13 crore as entertainment tax from its customers but only deposited Rs 4.63 crore as entertainment tax for this financial year. The allegation therefore was that it had defaulted by not depositing the remaining Rs 8.32 crore, which should have been deposited on a monthly basis in the government exchequer.

     

    Taking cognizance of the fraud, the Delhi government levied a 100 per cent penalty of Rs 8.32 crore and an interest of Rs 3.06 crore under the relevant provisions of the Delhi Entertainments and Betting Tax Act 1996, sources said.

     

    The complete assessment including additional tax, penalty and interest for the financial year 2013-14 is Rs 19.71 crore.

     

    The Delhi Government alleged that the MSO had defaulted during the next financial year of 2014-15 as well. The government has assessed the tax, interest and penalty for 2014-15 at Rs 13.41 crore.