New Delhi: DEN Networks Ltd, one of the largest cable MSOs’ in India, today announced its financial results for Quarter 4, FY18 and Full year FY18 at the meeting of its Board of Directors.
Consolidated Revenues for FY’18 is Rs.1,287crores vs. Rs1,142crores in FY’17, up by 13%.The Consolidated EBITDA for FY18 stood at Rs 283 crs (Vs. Rs 183 crs in FY17, an increase of 55% Y-o-Y). This however does not include Rs. 43crores of EBITDA pertaining to the entities which are not getting consolidated as per INDAS. On an overall business basis, the consolidated EBITDA for FY18 is Rs. 326crores.
Consolidated EBITDA margin improved to 22% – an increase of ~600 basis points over last year primarily due to growth in subscription revenue and cost rationalization. The company was able to reduce the operational costs to 36% of revenue in FY18 Vs. 43 % in FY17 driven by concerted efforts. As a result, FY18 PAT showed a positive movement of Rs 166crs during FY18 at Rs (–) 17crsVs a loss of Rs (-) 183 crs in FY’17.
Cable subscription revenues registered a growth of 22% in FY18 Vs FY17 led mainly by growth in phase 3 ARPU by ~30%.Cable EBITDA for FY18 stood at Rs 284 crs vs Rs 194 crs in FY17.
During the quarter, the company has undertaken successful field trials of new generation android boxes by providing high quality 4K services, graphic rich interactive games, voice search using mobile app and content sharing.
Broadband EBITDA loss has reduced to Rs 1 crs for FY18vs. Rs 9 crs loss in FY17 primarily due to focused efforts on cost optimisation.
Den intends to tap the high-potential broadband market by capitalising on its existing Cable TV infrastructure and providing hi-speed fixed broadband internet.Den announced expansion of its high-speed internet services to 100 cities across India. After an encouraging response to the pilot project in five cities, DEN has already started its first phase of expansion in 15 cities.
The Net debt for the company as of 31st Mar’18 stood at Rs 157 crs. Net debt to EBITDA has also reduced from 0.92as of 31st Mar’17 to 0.55 as of 31st Mar’18.
Mr. SN Sharma CEO of DEN Networks, commenting on the results added,“We have been able to deliver consistent improvement in our financial performance. All efforts are being pursued for further improving the subscription revenues across all phases to improve the margins.
We continue to focus on data analytics for better customer experience by tying up with BARC,increasing HD penetration and new generation Android boxes will help improve the future performance as well.The 100 cities fixed line broadband plan is being rolled out which should help us improve our broadband footprint across our existing cable markets”