DEN Networks Ltd
NSE:DEN
DEN Networks Ltd
DEN Networks Ltd. is a holding company, which engages in the distribution and promotion of television channels. The company is headquartered in New Delhi, Delhi. The company went IPO on 2009-11-06. The Company’s segments include Cable and Broadband. The Cable segment consists of the distribution and promotion of television channels. The Broadband segment consists of providing internet services. Its geographical segments include within India and Outside India. The firm offers products and services to its customers through digital cable entertainment (DEN Cable), high-speed broadband services (DEN Broadband) and over-the-top (OTT) entertainment app (DEN TV+). Its Cable and Broadband operations cover over 500 cities/towns across Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand in India. Its subsidiaries include DEN Krishna Cable TV Network Limited, DEN Harsh Mann Cable Network Limited and Den Classic Cable TV Services Limited.
DEN Networks Ltd. is a holding company, which engages in the distribution and promotion of television channels. The company is headquartered in New Delhi, Delhi. The company went IPO on 2009-11-06. The Company’s segments include Cable and Broadband. The Cable segment consists of the distribution and promotion of television channels. The Broadband segment consists of providing internet services. Its geographical segments include within India and Outside India. The firm offers products and services to its customers through digital cable entertainment (DEN Cable), high-speed broadband services (DEN Broadband) and over-the-top (OTT) entertainment app (DEN TV+). Its Cable and Broadband operations cover over 500 cities/towns across Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand in India. Its subsidiaries include DEN Krishna Cable TV Network Limited, DEN Harsh Mann Cable Network Limited and Den Classic Cable TV Services Limited.
Revenue Growth: Cable subscription revenue grew 11% year-on-year to INR 170 crores in Q1 FY'19, supported by higher ARPUs and rate increases.
ARPU Trends: Overall cable ARPU improved 15% YoY to INR 93 per box, and management expects a 12–15% blended ARPU increase for the year due to July price hikes across all phases.
Broadband Expansion: Fixed-line broadband was rolled out in 28 cities by end-Q1, with plans for 100 cities; current broadband ARPU is about INR 562.
Profitability Pressure: EBITDA margin was stable at 16%, but EBITDA fell to INR 47 crores from INR 61 crores YoY, mainly due to increased content costs and lower collection efficiency (86%).
Cost Control: Personnel costs were cut by 25% (INR 8 crores YoY), and net debt stands at INR 190 crores as of June 30, 2018.
Regulatory Impact: Management expects the new TRAI tariff order, once implemented, to make content costs a pass-through and support industry stability.
Guidance: Management confident of restoring profitability and subscriber numbers in coming quarters, with ARPU/revenue gains from price hikes expected to flow through the year.
