DEN posts strong turnaround with consolidated PBT at Rs 6 cr in Q1 FY18

DEN Networks has reported a consolidated Profit before Tax (PBT) of Rs 6 crore for Q1 FY18 compared to a loss of Rs 35 crore in the previous quarter and a loss of Rs 38 crore in Q1 of 2016-17. 

DEN has been making continuous efforts to improve its subscription collections from the LCOs, through a combination of consumer ARPUs going up and DEN increasing its share of the consumer ARPUs. As a result of this, cable subscription revenues registered a growth of 34 per cent in Q1 FY18, compared to the same quarter in the previous financial year. 

DEN continues to make significant progress on its cable and broadband operations. Consolidated EBITDA for the quarter is reported at Rs 85 crore from Rs 50 crore in Q1 FY17, a growth of 70 per cent. 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 crore as of June 2017 from Rs 181 crore as of March 31, 2017. 

With a strong focus on ‘consumer first’, 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 etc. on TV. DEN is working on a pipeline of technology initiatives that will be announced during the course of the year. 

Commenting on the results, SN Sharma, CEO, DEN Networks, said, “DEN turned another quarter of impressive results by registering a stupendous performance on the 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.” 

FY18 Q1 Operational Highlights: 

• Consolidated EBITDA at Rs 85 crore Vs Rs 50 crore in FY17 Q1 
• Strong turnaround at PBT level during the quarter 
• Consolidated PBT at Rs 6 crore for the quarter Vs Rs (-) 35 crore in FY 17 Q4 
• Cable PBT at Rs 15 crore Vs Rs (-) 25 crore in FY 17 Q4 
• Broadband revenue growth of 19 per cent with revenues at Rs 21 crore Vs Rs 18 crore in FY17 Q1