DEN posts consolidated operating profit of Rs 47 cr in Q3
MUMBAI: Cable TV & broadband service provider DEN Networks has posted a consolidated operating profit of Rs 47 crore for the quarter ended 31st December as against Rs 51 crore in the trailing quarter.
The company’s consolidated revenue stood at Rs 308 crore against Rs 310 crore a quarter ago. The expenditure incurred during the quarter was Rs 260 crore compared to Rs 259 crore. Net loss for the quarter was Rs 32 crore as against Rs 28 crore.
Cable subscription income remained flat at Rs 172 crore. Broadband subscription income increased to Rs 17 crore from Rs 16 crore. Placement revenue remained unchanged at Rs 81 crore. Activation income was the same as the previous quarter at Rs 25 crore.
The cable business EBITDA was Rs 48 crore compared to Rs 50 crore in Q2 FY19. Revenue was Rs 266 crore versus Rs 269 crore. Expenditure remained unchanged at Rs 243 crore including the content cost of Rs 149 crore.
The broadband business EBITDA was nil with both revenue and expenditure coming in at Rs 17 crore respectively.
The cable TV and broadband average revenue per user (ARPU) stood at Rs 82 and Rs 559 respectively. The total billed cable TV customers excluding associates stood at 7 million while the broadband subscriber was 112,000.
The company has rolled out broadband in 46 of the 100 cities identified for broadband expansion. DEN has 16,190 subscribers in these cities with ARPU of Rs 591. The speed offered is 10-100 Mbps with average data consumption of 100 GB.
The company’s net debt stood at Rs 168 crore as of 31st December 2018.
The Telecom Regulatory Authority of India’s (TRAI) tariff order got implemented with effect from 29th December 2018. DEN is aggressively obtaining consumer choices to migrate to the new regime by 31st January 2019.
DEN Networks CEO SN Sharma, commenting on the results, added, “Cable subscription ARPU is consistent with respect to the previous quarter which stood at Rs. 96 per box (including tax). TRAI Tariff order implementation, a potential gamechanger in the cable industry, is underway wherein we have taken a host of initiatives and strengthened our internal processes including IT systems. In order to migrate to the new Tariff order, the consumer has various options to exercise his choice of channels through our consumer / LCO mobile applications and web portal.
“Extensive LCO/distributor awareness programme is under progress wherein the partners are explained in clear terms the benefits they would get in the overall value chain. Prepaid system for cable subscription partners, the most preferred billing option under the new tariff order, has been successfully rolled out during the quarter in select markets.”