DEN Networks Ltd has reported a 20.7 per cent growth year-on-year in its cable business revenues for Q3 FY12 at Rs 168.62 crore from Rs 139.68 crore in Q3 FY11. Cable business EBITDA at Rs 31.02 crore rose 18.4 per cent Y-o-Y from Rs 26.19 crore in the same quarter last fiscal. EBITDA for the current quarter excluded one-time expenses of Rs 1.28 crore.
The cable business remained PAT positive despite higher depreciation and interest expenses in the current quarter as it continues to invest for digitising its markets to meet the deadlines as per the digitisation mandate. PAT (before ESOP expenses) stood at Rs 6.52 crore, up 6.6 per cent Y-o-Y from Rs 6.12 crore in Q3 FY11. PAT after ESOP expenses stood at Rs 3.08 crore.
Consolidated revenues for the quarter stood at Rs 282.16 crore, up 5.2 per cent Y-o-Y from Rs 268.24 crore in Q3 FY11.
DEN has been gearing up for the drive for digitisation and the company is readying itself for a fully digital environment. The company launched a large scale brand marketing campaign across television, print, radio and outdoor on leading media outlets to create awareness about the company’s digital cable service and to advertise offers for its digital set-top box.
The company has also launched a programme to educate its affiliate partners/ LCOs on the implications of the digitisation law. The programme educates LCOs on the features of digital cable, benefits and selling points to disseminate among consumers, and addresses their concerns on the large scale shift from analog to digital and their continuing role and importance in a fully digital environment. DEN has tied up with the global consulting firm Ernst & Young for this exercise.
DEN has secured adequate supplies of set-top-boxes necessary for digitising its subscriber base in the initial phases and has invested heavily in a nationwide digital footprint with digital headends operating in 17 locations across the country and capable of serving subscribers across markets. DEN has built a comprehensive customer services platform with multiple touch points. DEN has also strengthened its online presence with a consumer focused website that educates consumers about digitisation and the company’s offerings.
SN Sharma, CEO, DEN Networks Ltd, said, “We are very pleased with the company’s performance during the past quarter. DEN exhibited strong revenue growth of 21 per cent and robust EBITDA margins in a tough economic environment, while the company continues to invest in digitisation. We are working actively with our partners in making full digitisation a reality.”