DEN Networks Q2 FY17 revenues up 18%; gears up to launch OTT service

DEN Networks, one of the largest cable MSOs in India, has announced its financial results for the second quarter and half year ended September 30, 2016. 

Consolidated revenues increased to Rs 287 crore from Rs 244 crore in Q2 FY16, an increase of 18 per cent Y-o-Y and 12 per cent on Q-o-Q basis. Cable subscription revenues were up at Rs 150 crore from Rs 115 crore on Y-o-Y basis (growth of 31 per cent). 

Consolidated EBITDA for Q2 FY17 stood at Rs 34 crore, compared to Rs 15 crore in Q1 FY17 (growth of 120 per cent) and a loss of Rs (-) 39 crore in Q2 FY16. With regards to half yearly results, EBITDA stood at 49 crore vis-a-vis loss of Rs (-) 58 crore in H1 FY16. 

270,000 set top boxes were seeded during the quarter, making digital subscriber base at 10.1 million. 

Soccer stake reduced to 20 per cent from 45 per cent. 

Commenting on the business and results, SN Sharma, CEO, DEN Networks, said, “There has been a significant improvement in the subscription income during the second quarter for the cable business of DEN at Rs 176 crore (inclusive of taxes). ARPU (including taxes) for DAS 1/ 2 and 3 markets stood at Rs 113, Rs 90 and Rs 51 per box, respectively. Phase 3 ARPU has grown almost 35 per cent on a quarter on quarter basis from Rs 38 per box in Q1 with collection efficiency at 95 per cent.” 

Continuing further, Sharma said, “As of November 2016, these ARPUs have further improved to Rs 123, Rs 92 and Rs 58 per box for the three DAS areas, respectively. This is in line with the guidance given by DEN earlier. DEN has seen its highest ever collections in the month of November 2016. The collection efficiency continues to be strong at 95+ per cent. We are hopeful to achieve an ARPU of Rs 70 per box in DAS Phase 3 areas by January 17.” 

He said that DEN was planning to launch its OTT application very shortly, which is currently under test within a closed user group. “The results and feedback so far have been very encouraging and this is a pioneer initiative in the MSO industry,” he claimed. 

Talking about the industry developments, Sharma remarked, “Most of the High Court cases with respect to the Phase 3 digitisation are behind us now. There is a draft tariff order from TRAI with respect to the broadcasters and MSOs. This goes very well for the industry and sets a positive future tone for the MSOs.”