DEN reports strong operational performance in FY18; EBITDA grows 55%

DEN Networks Ltd has reported 13 per cent growth in its consolidated revenues for FY18 at Rs 1,287 crore, as against Rs 1,142 crore in FY17. The consolidated EBITDA for FY18 stood at Rs 283 crore (Vs Rs 183 crore in FY17, an increase of 55 per cent Y-o-Y). This, however, does not include Rs 43 crore of EBITDA pertaining to the entities which are not getting consolidated as per INDAS. On an overall business basis, the consolidated EBITDA for FY18 is Rs 326 crore. 

Consolidated EBITDA margin improved to 22 per cent, an increase of ~600 basis points over last year primarily due to growth in subscription revenue and cost rationalisation. 

The company was able to reduce the operational costs to 36 per cent of revenue in FY18 Vs 43 per cent in FY17 driven by concerted efforts. As a result, FY18 profit after tax (PAT) showed a positive movement of Rs 166 crore during FY18 at Rs (-) 17 crore Vs a loss of Rs (-) 183 croe in FY17. 

Cable subscription revenues registered a growth of 22 per cent in FY18 Vs FY17, led mainly by growth in phase 3 ARPU by ~30 per cent. Cable EBITDA for FY18 stood at Rs 284 crore vs Rs 194 crore in FY17. 

During the quarter, the company has undertaken successful field trials of new generation android boxes by providing high quality 4K services, graphic rich interactive games, voice search using mobile app and content sharing. 

Broadband EBITDA loss has reduced to Rs 1 crpre for FY18 vs Rs 9 crore loss in FY17 primarily due to focused efforts on cost optimisation. 

DEN intends to tap the high-potential broadband market by capitalising on its existing cable TV infrastructure and providing hi-speed fixed broadband internet. DEN announced expansion of its high-speed internet services to 100 cities across India. After an encouraging response to the pilot project in five cities, DEN has already started its first phase of expansion in 15 cities. 

The Net debt for the company as of March 31, 2018 stood at Rs 157 crore. Net debt to EBITDA has also reduced from 0.92 as of March 31, 2017 to 0.55 as of March 31, 2018. 

Commenting on the results, SN Sharma, CEO, DEN Networks, said, “We have been able to deliver consistent improvement in our financial performance. All efforts are being pursued for further improving the subscription revenues across all phases to improve the margins.” 

He further said, “We continue to focus on data analytics for better customer experience by tying up with BARC, increasing HD penetration and new generation Android boxes will help improve the future performance as well. The 100 cities fixed line broadband plan is being rolled out which should help us improve our broadband footprint across our existing cable markets.” 

FY18 Operational Highlights: 

Consolidated Results – Full year Comparison – FY18 Vs. FY17 (INDAS) 

• Revenues for FY18 are Rs 1,287 crore vs. Rs 1,142 crore in FY17, up by 13%.
• Total cost for FY18 are Rs 1,003 crore vs. Rs 958 crore in FY17, up by 5%.
• EBITDA for FY18 is Rs 283 crore vs. Rs 183 crore in FY17, up by 55%.
• PAT in FY18 is Rs (-)17 crore vs Rs (-)183 crore in FY17.

Consolidated Results – Y-o-Y Comparison – Q4 FY 18 Vs. Q4 FY 17 (INDAS) 

• Revenues for Q4 FY18 are Rs 316 crore vs. Rs 315 crore in Q4 FY17.
• Total cost for Q4 FY18 are Rs 257 crore vs. Rs 256 crore in Q4 FY17, up by 1%.
• EBITDA for Q4 FY18 is Rs 59 crore vs. Rs 59 crore in Q4 FY17.
• PAT for Q4 FY18 is Rs (-) 10 crore from Rs (-) 59 crore in Q4 FY17.