DEN posts consolidated PBT, at Rs 6 cr in Q1FY18

Cable operator Den Networks recorded turnaround at the profit before tax (PBT) level on a consolidated basis at Rs 6 crore as against a loss of Rs 38 crore in Q1FY17. In the preceding quarter (Q4FY17), the company posted a loss of Rs 35 crore. The cable business registered PBT of Rs 15 crore in Q1FY18. 

Total income grew from Rs 278 crore in Q1FY17 to Rs 322 crore this year. Revenue from cable business grew to Rs 293 crore in Q1FY18 as compared to Rs 251 crore in the same quarter last fiscal. The company said that the increase in subscription revenue is a result of increasing average revenue per user (ARPU) and Den’s managing to get a greater share of this ARPU. Broadband revenue grew at 19 per cent at Rs 21 crore compared to Rs 18 crore in Q1FY17. 

Consolidated EBITDA for the quarter was Rs 85 crore up 70 per cent from Rs 50 crore in Q1 FY17. The broadband business continues to achieve breakeven EBITDA performance despite stiff competition from the leading telecom operators in the country. Den has seen its average network consumption climb to almost 75 GB per month per subscriber.

Net debt of the company has come down to Rs 134 cr as of June 2017 from Rs 181 crores in the March quarter this year. 

S N Sharma CEO of DEN Networks, 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 75 GBs 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.”

Den, after launching OTT and gaming services, has taken another initiative to enable its HD boxes with broadband connectivity by using a WiFi USB dongle. This will convert any normal TV to a smart TV and the 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, weather report among others on TV. Den is working on a pipeline of technology initiatives that will be announced during the course of the year.