DEN Q1 PBT turns around; HD STBs enabled with broadband connectivity
MUMBAI: DEN Networks has reported a consolidated profit before tax (PBT) of Rs 6 crore versus a loss of Rs 35 crore in the previous quarter and a loss of Rs 38 crore in Q1 of 2016-17. After launching OTT and gaming services, the multi-system operator has taken another initiative to enable its high-definition (HD) set-top boxes (STBs) with broadband connectivity by using a Wi-Fi USB dongle. This will convert any normal TV to a smart TV and consumers will be able to use their mobile handsets as a remote control for the TV. This will also enable the customer to watch different apps like YouTube on TV.
DEN is also working on a pipeline of technology initiatives that will be announced during the year. The MSO has been making continuous efforts to improve its subscription collections from the local cable operators (LCOs) based on a combination of the consumer ARPU going up and Den increasing its share of the consumer ARPU. As a result, cable subscription revenues registered a growth of 34% in Q117-18 compared to the same quarter in the previous financial year.
Consolidated EBITDA for the quarter grew 70% at Rs 85 crore from Rs 50 crore in Q1 FY17. DEN continues to make significant progress on its cable and broadband operations. The MSO said that the broadband business continues to achieve breakeven EBITDA performance despite stiff competition from the country’s leading telecom operators. Den has seen its average network consumption climb to almost 75GB per month per subscriber.
The company’s net debt has come down to Rs 134 crore as of 30 June from Rs 181 crore as of 31 March.
DEN Networks CEO SN Sharma said, “Den turned another quarter of impressive results by registering a stupendous performance on cable business. We remain focused on consumer needs and continue to take technology initiatives that will help our consumers to make their lives convenient and connected. On the basis of IGAAP numbers, Den has broken even at the PBT level and the cable business has turned positive at the PAT level. We continue to add subscribers in our broadband business. The average data consumption for broadband business has already crossed 75GB per month.
We are very hopeful to continue with this performance and are eagerly awaiting the final verdict on the new TRAI tariff order from the industry stand point.”
FY18 Q1 operational highlights:
Consolidated EBITDA* at Rs 85 crore vs Rs 50 crore in FY17 Q1
Strong turnaround at PBT* level during the quarter
Consolidated PBT at Rs 6 crore for the quarter vs Rs (-) 35 crore in FY 17 Q4
Cable PBT at Rs 15 crore vs Rs (-) 25 crore in FY 17 Q4
Broadband revenue growth of 19% with revenues at Rs 21 crore vs 18 crore in FY17 Q1