DEN posts consolidated EBITDA of Rs 38 cr in Q4

MUMBAI: Multi system operator (MSO) DEN Networks has posted consolidated EBITDA of Rs 38 crore for the quarter ended 31st March as against Rs 47 crore in the trailing quarter. In the corresponding quarter of the previous fiscal, the EBITDA stood at Rs 59 crore.

The company posted consolidated revenue of Rs 275 crore in Q4 as against Rs 308 crore. The cable subscription revenue stood at Rs 159 crore as against Rs 172 crore a quarter ago. Placement revenue came in at Rs 66 crore as against Rs 81 crore. The broadband subscription income remained flat at Rs 17 crore.

Total expenditure declined to Rs 237 crore from Rs 260 crore. Content costs fell to Rs 126 crore from Rs 149 crore.

On a full-year basis, the company posted an EBITDA of Rs 183 crore compared to Rs 284 crore in the previous fiscal. Income stood at Rs 1207 crore from Rs 1286 crore. Expenditure was up marginally at Rs 1024 crore from Rs 1003 crore.

Cable subscription registered a jump at Rs 673 crore from Rs 667 crore. Broadband subscription revenue stood Rs 66 crore as against Rs 73 crore. Placement revenue for fiscal was Rs 313 crore compared to Rs 345 crore. The content cost was Rs 543 as against Rs 540 crore.

The company stated that it has recognised provision for impairment of trade receivables and Property Plant & Equipment including Set-top boxes (STBs) amounting to Rs. 184.6 crore due to the implementation of the new tariff order of the Telecom Regulatory Authority of India (TRAI).

It further stated that one-time exceptional provision has also been recognised for certain tax-related matters and other assets amounting to Rs. 26.5 crore. These adjustments, having a one-time, non-routine material impact on financial statements, hence been disclosed as “Exceptional Item” in Financial Results, the company noted.

DEN also stated that it has successfully migrated all the consumers to either packs chosen by consumers or best fit packs of DEN. The company also said it has created competitive packages keeping in mind consumer preferences, affordability, and competition from DTH/MSOs.

The company also said that the benefits of the New Tariff Order will start flowing from 1st April onwards. The NTO will allow customers the freedom of selection of channels. It is also expected to result in better transparency with respect to revenue share and fair competition among stakeholders in the value chain.

The new pricing mechanism is being evolved including long tail channels which will optimise the consumer pricing. DEN also said that cable distribution industry has become a choice driven subscription model which will provide consumer access to better content as competitive prices making consumer theKing.

During the quarter, the company has allotted on preferential basis 28,14,48,000 equity shares of Rs. 72.66 each at a premium of Rs. 62.66 per share to the following entities Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings, and Jio Television Distribution Holdings aggregating to Rs. 2,045 crore representing 58.98% of post-preferential allotment equity share capital of the company.