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DEN’s cable TV biz reports operating profit in Q3
MUMBAI: DEN Networks’ cable TV business has reported operating profit compared to a loss in the year-ago period.
The multi-system operator (MSO) has narrowed its consolidated net loss in the fiscal third quarter to Rs 48.37 crore (Rs 483.7 million) compared to Rs 75.23 crore (Rs 752.3 million) in the preceding quarter. In the same period a year ago, the MSO had reported a net loss of Rs 62.60 crore (Rs 626 million).
Total income for the three-month period ended 31 December 2015 grew 29.8% to Rs 352.18 crore (Rs 3.52 billion), from Rs 271.29 crore (Rs 2.71 billion) in the trailing quarter. On a year-on-year (YoY) basis, this marked a 31.01% growth.
DEN said that the digital addressable system (DAS) subscription fee has not yet been finalised and the revenue on account of the same has been recognised based on certain estimates which in the management’s view are reasonable.
Expenses grew 9% quarter-on-quarter (QoQ) to Rs 365.23 crore (Rs 3.65 billion) from Rs 335.04 crore (Rs 3.35 billion) and 15.3% year-on-year (YoY) from Rs 316.74 crore (Rs 3.17 billion).
The company’s cable TV business turned an operating profit of Rs 32.64 crore (Rs 326.4 million) for the quarter compared to a loss of Rs 32.11 crore (Rs 321.1 million) in the preceding quarter. In the year-ago period, operating loss was Rs 3.5 million.
The MSO’s cable TV revenue grew 24% to Rs 326.43 crore (Rs 3.26 billion) from Rs 263.06 crore (Rs 2.63 billion) in the preceding quarter. The YoY growth was 26.3% from Rs 258.55 crore (Rs 2.58 billion).
Content cost saw a 3.5% per cent dip to Rs 131.94 crore (Rs 1.32 billion) from Rs 136.77 crore (Rs 1.37 billion) in the previous quarter. In the year-ago period, it was at Rs 110.06 crore (Rs 1.10 billion), thus reflecting a 19.9% increase in the quarter under review.
Placement fees increased 43% to Rs 10.52 crore (Rs 105.2 million) from Rs 7.34 crore (Rs 73.4 million). In the earlier year, it was at Rs 8.86 crore (Rs 88.6 million).
DEN Networks pumped Rs 1,467.39 crore (Rs 14.67 billion) into the cable TV business.
The company’s operating loss from the broadband business decreased 15.17% to Rs 19.57 crore (Rs 195.7 million) from Rs 23.07 crore (Rs 230.7 million) in the previous quarter. Loss a year ago was Rs 12.37 crore (Rs 123.7 million).
Revenue from the segment increased 45.32% to Rs 11.96 crore (Rs 119.6 million) from Rs 8.23 crore (Rs 82.3 million) in the preceding quarter. It was at Rs 2.17 crore (Rs 21.7 million) in the earlier year.
The company incurred an operating loss of Rs 26.11 crore (Rs 261.1 million) from its football club Delhi Dynamos. This is almost three times the loss it had incurred in the previous quarter. In the year-ago period, operating loss was at Rs 35.21 crore (Rs 352.1 million).
DEN Networks posted revenue of Rs 13.79 crore (Rs 137.9 million) during the quarter from the soccer business. There was no revenue from the soccer business in the previous quarter since the Indian Super League (ISL) takes place once in a year during the third quarter. In the same period of the previous fiscal, revenue was at Rs 8.09 crore (Rs 80.9 million).
The company said that it had invested Rs 591.04 crore (Rs 5.91 billion) in subsidiary and joint venture companies. Out of this amount, the company investment of Rs 66.07 crore (Rs 660.7 million) and had balances of loans/advances of Rs 3.76 crore (Rs 37.6 million) in various subsidiaries whose net worth had fully/substantially eroded.