DEN Q1 FY19 revenues see marginal growth; broadband rolled out in 28 cities
DEN Networks Ltd has reported consolidated revenues of Rs 314 crore in the first quarter of FY2019, a marginal growth from Rs 313 crore in Q1 FY2018. Cable subscription revenues registered a growth of 11 per cent during the quarter.
While the company was able to save on personnel cost (25 per cent reduction Y-o-Y) due to concerted efforts, content cost has increased in Q1 FY19 (increase of 15 per cent Y-o-Y).
On an overall business basis, the consolidated EBITDA, including associates (the entities which are not getting consolidated as per INDAS) for Q1 FY19 stood at Rs 57 crore. Excluding the associates, the consolidated EBITDA as per INDAS for Q1 FY19 stood at Rs 47 crore, as against Rs 61 crore in Q1 FY18.
Driven by strong broadband demand across DEN’s cable presence markets, the company was able to successfully roll out fixed line broadband services in 28 cities by end of Q1 FY19 as part of the 100 cities plan.
Net debt as of June 30, 2018 for the company stood at Rs 190 crore.
Commenting on the results, SN Sharma, CEO, DEN Networks, said, “We have already enabled 28 new cities out of the 100 cities fixed line broadband plan. Cable subscription rates have been increasing consistently year on year, further increases have been announced in July 2018 to offset the impact of increased content costs. Also, the notification of TRAI order is expected to be a game changer for the industry.”
Telecom Regulatory Authority of India (TRAI) has notified the Tariff order w.e.f July 3, 2018, expected to be implemented by December 30, 2018. Content cost should become a pass through once the order gets implemented.