BENGALURU: Indian multi system operator (MSO) Den Networks Ltd (Den) Cable business segment consolidated total revenue (pre-activation) increased 18 percent in in the quarter ended 30 September 2016 (Q2-17, current quarter) to Rs 258 crore from Rs231 crore in Q2-16. The company reported consolidated EBIDTA of Rs 34 crore in Q2-17 as compared to Rs 1 crore in the corresponding year ago quarter.

Consolidated net loss in Q2-17 more than halved to Rs 48 crore as compared to a loss of Rs 99 crore in Q2-16.

Twomain segments currently contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband internet segment (Boomband). It has two other segments - TV Commerce and soccer. Den says that its OTT platform is undergoing tests and will be launched soon. The company says further that it has divested another 25 percent of its soccer business.

Cable segment

Cable subscription revenue increased 31 percent y-o-y to Rs140 crore in Q2-17 from Rs115 crore in Q2-16. Cable activation revenue increased 17 percent y-o-y to Rs 32 crore from Rs 27 crore. Placement revenue declined 13 percent y-o-y to Rs86 crore from Rs98 crore.

The company reported 101 lakh DAS subscribers, of which 51 lakh were from DAS phases III and IV for Q2-17. The company had 76 lakh digital subscribers in Q2-16.Den has a cable subscriber base of 1.3 crore.

Broadband segment

Den’s Broadband segment revenue more than doubled (2.6 times) in Q2-17 to Rs 21 crore from Rs 8 crore in Q2-16. Please refer to the figure below for Den’s revenue break-up for Q2-17 and Q2-16.

The company says that it has added about 25,000 subscribers in the current quarter, hence bringing its broadband internet subscriber base to 140,000.

Broadband segment’s operating loss (EBIDTA) in Q2-17 was lower at Rs 2 crore as compared to an operating loss of Rs 11 crore in Q2-16 and an operating loss of Rs 9 crore in the immediate trailing quarter.

Other numbers for Q2-17

Den’s consolidated total expenditure in the current quarter declined 4 percent to Rs 244 crore from Rs 256 crore in Q2-16.

Content costs are a major component of Den’s expenditure- Content costs in the current quarter declined 8 percent in the current quarter to Rs 118 crore from Rs 128 crore in the corresponding year ago quarter.

Employee(Personnel) costs increased2 percent in the current quarter to Rs33 crore from Rs 34 crore in Q2-16. Other operating expenses in Q2-17 declined4 percent to Rs 84 crore from Rs88 crore.

Note: (1.1) The above report is based on Den’s investor presentation for Q2-17.
(1.2) All numbers mentioned are consolidated unless stated otherwise.
(1.3)    The figures mentioned above have been rounded off and based on the numbers presented by Den in the public domain.
(2) The numbers in this paper are as per Indian Accounting System. (Ind AS)
(3) The unit of currency in this report is the Indian rupee - Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.