Den Networks posts net loss of Rs.52 crore as cable distribution business revenues decline by almost 15%
Den Networks total revenue had declined by 11.1% to Rs.265.6 crore in Q1FY2016 from Rs.298.8 crore in Q1FY2015. It also declined by 1.7% in comparison to the previous Q4FY2015 quarter which stood at Rs.270.3 crore
Den Networks unveiled its first quarter results which saw a dip in the total revenues of the MSO and broadband network provider. The total revenue had declined by 11.1% to Rs.265.6 crore in Q1FY2016 from Rs.298.8 crore in Q1FY2015. It also declined by 1.7% in comparison to the previous Q4FY2015 quarter which stood at Rs.270.3 crore.
The company posted a net loss of Rs.51.89 crore in Q1FY2015. However, in Q1FY2015 it managed to post a net profit of Rs.1.12 crore. The net loss during the first quarter was however lower than the net loss incurred by the company in Q4FY2015 which was to the tune of Rs.62.03 crore. Apart from the drop in revenue the rise in content costs as much as 28% during the first quarter contributed to the net loss incurred by the company. Placement fees also almost doubled from Rs.5 crore in Q1FY2015 to Rs.9 crore in Q1FY2016.
The company saw a decline in revenues of almost 15% from its main cable distribution network business. Den Networks cable distribution network segment saw a decline in revenues of 14.7% in Q1FY2016 as it posted revenues of Rs.259.46 crore from Rs.297.75 crore in Q1FY2016. The revenues were also lower by 2.8% in comparison to Q4FY2015 where it stood at Rs.266.88 crore.
However, the broadband segment business of the company saw a massive growth in revenues as much as four times since the corresponding quarter last year. In Q1FY2016 the broadband business increased its revenues to Rs.5.21 crore from Rs.1.06 crore in Q1FY2015. The broadband segment revenues also increased by 51.8% since Q4FY2015 which had posted a revenue of Rs.3.43 crore. Den Networks also received Rs.93 lakh from its soccer segment business which was not there in the previous quarter.
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