Den Networks , a leading cable TV distribution company, has released its investor presentation for the quarter ended December 31, 2019, showcasing significant growth in key financial metrics.

Financial Highlights

The company reported a robust performance in the third quarter of FY2020:

Den Networks demonstrated strong growth in its EBITDA, which reached ₹58.00 crore, marking a significant increase of 20% quarter-over-quarter and 22% year-over-year. The EBITDA margin expanded to 18%, indicating improved operational efficiency.

Segment Performance

The company's performance was driven by its two main business segments:

Cable Business

• Revenue: ₹300.50 crore
• EBITDA: ₹57.30 crore

Broadband Segment

• Revenue: ₹17.60 crore
• EBITDA: ₹0.80 crore

Turnaround in Profitability

In a notable turnaround, Den Networks reported a consolidated profit after tax of ₹12.20 crore, compared to a loss of ₹31.50 crore in the same quarter of the previous year. This shift to profitability underscores the company's improved financial health and operational efficiency.

Market Presence and Recognition

Den Networks continues to maintain a strong presence in the cable TV and broadband services market, operating across more than 500 cities in 13 states. The company's commitment to quality service was recognized in 2019 when it was named the most trusted brand in the cable TV industry by TRA Research.

Conclusion

Despite a slight dip in total consolidated revenue compared to the previous quarter, Den Networks has shown resilience with year-over-year growth and significant improvements in profitability and EBITDA. The company's focus on subscription revenue growth and operational efficiency appears to be yielding positive results, positioning it well in the competitive cable TV and broadband services market.

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.