MUMBAI: Sameer Manchanda-promoted Den Networks‘ cable business has posted a whopping 42 per cent jump in its net profit for the three-month period ended 31 March compared to the year-ago period.
The multi-system operator (MSO) with a pan-India footprint has posted a net profit of Rs 40.9 million (before ESOP expenses) compared to Rs 49.9 million in the year-ago period from its cable business. However, after ESOP expenses, the net comes down to Rs 36.5 million.
In the trailing quarter, the net profit was at Rs 65 million.
Total revenue from the cable business during the quarter jumped 18 per cent to Rs 1.89 billion as against Rs 1.6 billion in the corresponding quarter of the previous fiscal. In the three-month period ended 31 December, the revenue was at Rs 1.69 billion.
Den‘s profit from operations before other income, interests and exceptional items (Ebitda) jumped 49 per cent (before one-time expenses) at Rs 392.7 million compared to the earlier year (Rs 263.6 million), while in the trailing quarter Ebitda was at Rs 310.2 million.
Den said that it has fully geared for digitising its subscriber base in the three Phase 1 cities it is present in (Delhi, Mumbai and Kolkata). Supplies for the estimated number of set top boxes have been secured to ensure timely seeding of these set top boxes so that consumers in DEN‘s service areas face no disruption in their television connections after the sunset date.
To further ramp up the digitisation effort, Den has built a sales team which is undertaking direct selling activities through DSAs (direct selling agents) along with the LCO to further augment digital growth in consumer homes.
However, for the full fiscal, Den‘s cable business net profit dropped 60.62 per cent. Den said that it maintained its profitability despite higher cost. Net profit stood at Rs 103.2 million, compared to Rs 262.1 million in the year ago period.
The revenue jumped to 6.78 billion, compared to Rs 5.7 billion in the previous fiscal.
On a consolidated basis, Den has posted a net profit of Rs 47.5 million, down from Rs 78.2 million in the corresponding quarter of the previous fiscal. In the trailing quarter, the net profit was at Rs 35.3 million.
Total revenue was up at Rs 3.25 billion, compared to Rs 2.84 billion in the year -ago period and Rs 2.82 billion in the trailing quarter. Expenses surged to Rs 2.84 billion, from Rs 2.53 billion in the year ago quarter and Rs 2.50 billion in the trailing quarter.
For the full fiscal, Den‘s consolidated net profit stood at Rs 145.7 million, down from Rs 375.3 million in the previous fiscal. Income went up to Rs 11.54 billion (from Rs 10.58 billion), while expenses stood at Rs 10.20 billion, compared to Rs 9.22 billion in the year ago period.
