DEN Networks Ltd has announced its financial results for the fiscal year ended 31 March 2015 at the meeting of its Board of Directors.
Key 2015 Operational Highlights:
Continuing with plans to digitize the analog cable subscriber base, DEN seeded additional one million boxes in FY’14-15. This takes the digital subscribers base to 7 million out of a total 13 million subscribers. Out of 5.1m digital subscribers in DAS 1&2 markets, DEN continues to bill approximately 80% of the subscribers.
Cable subscription income grows by 25% on a year to year basis. Steady improvement seen in collections.
Launched in FY’ 14-15, DEN Broadband services are now available to 329,000 homes as on March 31st 2015. The benefit of conversions out of the network rollout will come in the following quarters. The company currently has a subscriber base of 23k at the end of FY’14-15 and 40% of the new broadband subscribers come from Non-DEN homes.
DEN entered into a 50:50 JV with e-commerce major, SNAPDEAL and forayed into TV Commerce business leveraging DEN’s strengths in distribution and media and SNAPDEAL’s strength in brand, merchandising and logistics. The JV is currently converting +30% of the calls received and is clocking an annualised GMV of INR 115 Crores (at Mar’15 average booked GMV rate) within four months of beginning
DEN forayed into football business and bought Delhi Dynamos of ISL with the strategic intent of strengthening our consumer brand. Delhi Dynamos FC is one of the most popular teams of the ISL with a fan base of over 419,000 on Facebook and over 30,000 Twitter followers.
Consolidated 2015 Financial Highlights:
Cash and Equivalents INR 934 Cr
Net Debt INR 62 Cr
Total revenues improved to INR 1,130 Crore in FY’15
EBITDA (Excluding Activation) at INR 28 Cr; declined vs previous year due to investment phase in cable phase 3 and 4 markets, broadband, soccer and TV commerce businesses. EBITDA (Including Activation) stands at INR 92 Cr.
EBITDA margins (Excluding Activation) in Phase I and II markets at 20% despite a significant pressure on content cost from broadcasters.
Cable 2015 Financial Highlights:
Revenues, excluding activation and LCO share, grows 11.5% at INR 966 Cr
Overall cable EBITDA margin, net of activation, stands at 12.6% vs 16.9% last year. The impact is on account of increase in content costs and investment in DAS 3 and 4 Markets
Speaking on the occasion, Pradeep Parameswaran, CEO – DEN Networks said, “We are laying the foundations of building a powerful Consumer Franchise in Broadband, Cable Television and Television Shopping. Significant investments are being made to bring disruptive consumer offerings to the market. We are augmenting our historical strengths in Cable Operations with high-quality talent in all functions. Besides focus on internal changes, I am also hopeful of stronger collaboration with the LCOs and other industry partners to take steps for successful execution of Digitisation process thus supporting the Governments push towards Digital India. Our excitement in the scale of the opportunities and our ability to capture it continues to remain strong. We have seen the positive results on subscription revenues and collections in Q4 of the current year. The profitability has been impacted because of the new business initiatives of the company including Broadband, TV Shop and Football as we build DEN for future.”