DEN posts consolidated EBITDA of Rs 50 cr in Q2
MUMBAI: Multi system operator (MSO) DEN Networks has posted a consolidated operating profit (EBITDA) of Rs 50 in Q2 FY19 compared to Rs 47 crore in the Q1 FY19.
On an overall basis, the consolidated EBITDA including associates (the entities which are not getting consolidated as per IND-AS) for Q2 FY19 stood at Rs 55 crore.
Consolidated revenues for Q2 FY19 is almost flat at Rs. 310 crore compared to Rs 314 crore in Q1 FY19. Cable subscription increased to Rs. 172 crore during the quarter while the average revenue per user (ARPU) registered a growth of 3% in Q2 FY19 compared to Q1 FY19.
The company said that concerted efforts on costs continue as other opex costs excluding content cost as % of revenue reduced to 36% in Q22 FY19 vs 37% in Q1 FY19.
DEN Networks CEO SN Sharma CEO commented, ”Cable subscription rates are Witnessing a positive traction across markets to offset the impact of the increased content costs. Average ARPU for the quarter (22 FY19 stood at Rs 96 per box (including tax) Vs. ARPU for (22 FY18 of Rs 87 per box
Broadband revenues for the quarter were marginally higher at Rs 17 crore. ARPU and subscriber base remains intact in the existing markets.
On the 100 city expansion plan, DEN was able to add another 18 cities taking the total coverage to 46 cities by the Q2 FY19 end. Of the total subscriber base of 112,000, the 100 city plan contributed an active subscriber base of +12,500.
The company said that its net debt improved to Rs 147 crore as of 30th September 2018 vs. Rs 190 crore as of 30th June 2018.
With the Supreme court dismissing Star India’s appeal, the decks have been cleared for the implementation of the tariff order notified by Telecom Regulatory Authority of India (TRAI) on 3rd July 2018.
DEN said that the content cost will become a pass through once the order gets implemented.
“TRAI Tariff order will give the industry the much-needed respite with Broadcasters declaring the MRP for every channel for the first time, thereby bringing in better transparency. Content will become a pass-through While giving sufficient choice to the consumer to pay for what he wants to watch along with the complete visibility of pricing,” Sharma added.