MUMBAI: Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.
Consolidated Q3 EBITDA (earnings before interests, taxes, depreciation and amortisation) stood at Rs 81 crore, 54 per cent higher than the Rs 53 crore reported a year ago but lower than the Rs 82 crore reported in the previous quarter. This EBITDA does not include the Rs 14 crore pertaining to entities that are not getting consolidated as per INDAS or else the overall consolidated EBITDA is Rs 95 crore.
The MSO has been able to get higher subscriptions from phase III and IV markets with revenue growth from cable subscription 21 per cent higher than Q3 2017 and 6 per cent higher than Q2 2018. This was aided by 10 per cent higher average revenue per user (ARPU) collection from phase III areas on a quarter-on-quarter basis.
Cable revenue stood at Rs 312 crore versus Rs 272 crore in the year ago quarter, up by 15 per cent. Cable EBITDA was Rs 82 crore, up from Rs 53 crore from Q3 2017, led by subscription growth and rationalisation of costs.
Subscription revenue drove up consolidated PAT to Rs 2 crore from negative Rs 37 crore in Q3 FY2017 and Rs 1 crore in Q2 2018.
The company stated that its broadband business was on track and that it managed to add 10,000 new subscribers during the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion. Cost optimisation initiatives have helped the broadband segment to break even which was negative Rs 1 crore in the previous quarter.
Den Networks CEO SN Sharma said, “Den has been able to improve operational performance consistently every quarter with constant focus on increasing the subscription collections on the ground with a much controlled cost base. It is a time of pride and joy as we announce that as per the Trust Research Advisory research, Den has outshone all its competing brands and has emerged as the ‘Most attractive brand of 2017’ in the cable TV segment.”
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