Den Networks has posted 20.7% year on year revenue growth in its Indian cable television business for the third quarter of the current fiscal year, including a 6.6% rise in its net profit.
Den reported revenues of INR 1.69 billion for the three months to 31 December 2011, compared with INR 1.4 billion in the same period of the previous year. Its net profit reached INR 65.2 million before ESOP expenses in the third quarter, compared to INR 61.2 million in the same quarter a year earlier.
Excluding a one-time expense of INR 12.8 million, the multi system operator's earnings before EBITDA rose 18.4% to INR 310.2 million as against INR 261.9 million in the third quarter of the fiscal year ending March 2011.
"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," said S N Sharma, chief executive, Den Networks Ltd.
Den, which operates a pan-Indian cable network, says it has sufficient numbers of set top boxes to meet its digitisation obligations in the early phases of the government's nationwide plan. The MSO has also invested heavily in digital headends serving 17 areas across India, in line with its plans for rolling out a countrywide digital footprint.
It has also invested in customer services, setting up a toll free call centre to address consumer queries about cable digitisation and how to acquire a digital set top box, and increasing its online presence to provide greater customer information.
Den has also teamed up with consultants Ernst & Young to educate its affiliate partners and local cable operators (LCOs) on the implications of mandatory digitisation. The programme covers the features of digital cable, benefits and selling points to disseminate among consumers, and explores LCO concerns about the wholesale migration from analogue to digital TV.