Den Networks , a leading cable TV distribution company, has announced its financial results for the first quarter, showcasing a notable increase in profitability despite a slight dip in revenue.

Profit Soars, Revenue Edges Down

The company reported a consolidated net profit of ₹542.00 crore for Q1, marking a significant 19% increase from ₹455.00 crore in the same quarter last year. This robust profit growth comes even as the company's revenue experienced a marginal decline, decreasing to ₹2,413.00 crore from ₹2,475.00 crore year-over-year.

EBITDA and Margin Contraction

Den Networks saw its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fall to ₹211.00 crore in Q1, down from ₹265.00 crore in the comparable period. Consequently, the EBITDA margin contracted to 8.74% from 10.71% year-on-year.

Segment Performance

The company's financial results reveal insights into its two primary business segments:

1. Cable Distribution Network: This segment generated revenue of ₹2,353.00 crore but reported a segment loss of ₹21.00 crore.
2. Broadband: The broadband segment contributed ₹105.00 crore to the revenue but incurred a loss of ₹13.00 crore.

Financial Position

Den Networks maintains a strong financial position with zero gross debt and healthy cash balances of ₹3,215.00 crore. The company's balance sheet shows a robust net worth of ₹3,674.00 crore as of the end of the quarter.

Other Highlights

• The company reported other income of ₹707.00 crore, significantly contributing to the overall profitability.
• Den Networks achieved a 96% online collection rate, including its subsidiaries.
• The total comprehensive income attributable to owners of the company stood at ₹543.00 crore.

Management Commentary

S.N. Sharma, Chief Executive Officer of Den Networks, stated, "Our Q1 results demonstrate our ability to enhance profitability despite challenging market conditions. We remain committed to operational efficiency and delivering value to our stakeholders."

Den Networks continues to be a significant player in the cable TV distribution market, covering over 450 cities across 13 key states in India. The company's focus on financial prudence and strategic growth initiatives positions it well for the future in the evolving digital entertainment landscape.

Note: All figures are in Indian rupees. 1 crore = 10 million.

Den Networks , a prominent player in the cable distribution and broadband services sector, has released its financial results for the first quarter, showcasing a mixed performance with increased profitability despite a slight dip in revenue.

Financial Highlights

The company reported a consolidated net profit of ₹542.00 million for Q1, marking a significant increase from ₹455.00 million in the same period last year. This 19.1% year-over-year growth in net profit comes despite a marginal decline in revenue.

Revenue for the quarter stood at ₹2,412.73 million, down from ₹2,475.28 million in the corresponding quarter of the previous year, representing a 2.5% decrease.

Segment Performance

Den Networks operates in two primary segments: cable distribution network and broadband services. The financial results reveal:

The cable distribution network, which forms the bulk of the company's revenue, saw a slight decline of 1.9% compared to the same quarter last year. The broadband segment experienced a more substantial decrease of 13.7% in revenue.

Profitability Metrics

Despite the revenue decline, Den Networks managed to improve its bottom line:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter was ₹211.00 million, compared to ₹265.00 million in the same period last year.
• The EBITDA margin decreased to 8.74% from 10.71% year-over-year.
• Other income increased to ₹706.74 million from ₹551.99 million in the corresponding quarter, contributing significantly to the profit growth.

Operational Performance

The company's operational expenses saw some changes:

• Content cost increased to ₹1,500.73 million from ₹1,422.64 million in the same quarter last year.
• Employee benefits expense rose slightly to ₹193.18 million from ₹188.24 million.
• Finance costs decreased to ₹3.51 million from ₹5.57 million.

Management Commentary

S.N. Sharma, Chief Executive Officer of Den Networks, stated, "The Board of Directors has approved the Unaudited Financial Results for the quarter ended June 30, as recommended by the Audit Committee. Despite challenging market conditions, we have managed to improve our profitability, which reflects our operational efficiency and strategic financial management."

Looking Ahead

While Den Networks faces challenges in revenue growth, particularly in its broadband segment, the company's ability to increase profitability in a competitive market environment demonstrates resilience. The company's focus on operational efficiency and cost management will be crucial in maintaining this positive trend in the coming quarters.

Investors and stakeholders will be watching closely to see how Den Networks navigates the evolving landscape of cable distribution and broadband services, especially in light of changing consumer preferences and technological advancements in the digital entertainment space.