DEN NETWORKS Reports Mixed Q1 Results: Profit Up, Revenue Down
Den Networks reported a consolidated net profit of ₹542.00 million for Q1, up 19.1% year-over-year, despite a 2.5% decrease in revenue to ₹2,412.73 million. The cable distribution segment saw a 1.9% revenue decline, while broadband revenue fell 13.7%. EBITDA decreased to ₹211.00 million, with the margin dropping to 8.74%. Other income rose to ₹706.74 million, significantly contributing to profit growth. Content costs increased, while finance costs decreased. CEO S.N. Sharma attributed the improved profitability to operational efficiency and strategic financial management.
*this image is generated using AI for illustrative purposes only.
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:
| Segment | Revenue (in million rupees) | Year-on-Year Change |
|---|---|---|
| Cable Distribution Network | 2,353.09 | -1.9% |
| Broadband | 104.64 | -13.7% |
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.
Historical Stock Returns for Den Networks
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.70% | +0.65% | -4.71% | +12.83% | -33.12% | -58.22% |
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