MUMBAI: Multi system operator (MSO) DEN Networks has acquired 51% stake in Uttar Pradesh-based cable TV operator VBS Digital Distribution for Rs 2.64 crore.
The company said that the acquisition will help expand the cable TV business in its key market UP.
VBS Digital Distribution, which was incorporated in December 2015, had a turnover of Rs 5.82 crore in FY17 and Rs 1.17 crore in FY16.
“DEN Networks has entered into an agreement with VBS Digital Distribution Network for acquiring a majority stake. The acquisition will further strengthen the network of the company in UP,” the company said in a filing to the BSE.
The company said that the expected date of completion is 5 January.
As reported earlier, DEN had turned net positive on a consolidated level in the quarter ended 30 September with a net profit of Rs 1 crore. In the trailing quarter, the company had posted a net loss of Rs 10 crore.
EBITDA had jumped 33% to Rs 82 crore from Rs 61 crore. Revenue had increased by 5% to Rs 328 crore from Rs 313 crore. Expenditure saw a 6% reduction at Rs 114 crore from Rs 121 crore.
The MSO had deployed 250,000 set top boxes (STBs) during the quarter to take its total digital cable TV base to 11 million. On the broadband side, it had added 12,000 gross subscribers to take the total base to 2.05 lakh. Broadband homes passed stood at 879,000 homes.
Recently, ICRA had upgraded the MSO’s credit rating by upgrading its rating for long-term and short-term Line of Credit (LOC) or debt instruments amounting to Rs 649.2 crore.