DEN Networks adds 1.7 million digital cable subscribers in 2015

Deployed ~1 million STBs in 3Q at an avg. rate of approx. Rs 900; DAS 3 digital subscribers ~3.5 million

NEW DELHI — DEN Networks, one of India’s largest cable MSOs with around 13 million subscribers, has announced results for the third quarter of its 2015-16 financial year. The company ended the quarter with 8.5 million digital subscribers, up 945,000 in the quarter and up by 1.67 million year-on-year.

Subscribers (Millions)

                             3Q'15  4Q'15  1Q'16  2Q'16  3Q'16
                             -----  -----  -----  -----  -----
Digital                        6.8    7.0    7.2    7.6    8.5

STBs (Millions)

                             3Q'15  4Q'15  1Q'16  2Q'16  3Q'16
                             -----  -----  -----  -----  -----
Total DAS 1 and 2 Markets      4.9    4.9    4.9    5.0    5.0
 DAS Phase 1 Markets          2.09   2.10   2.12   2.15   2.15
 DAS Phase 2 Markets          2.81   2.84   2.84   2.84   2.84

DAS 3 Markets                 1.94   2.09   2.25   2.58   3.52

DEN Networks Q1 net loss at INR518.9 million

DEN Networks has reported a net loss of INR518.9 million for the quarter that ended 30 June, 2015. The multi-system operator’s net loss stood at INR620.8 million for the trailing quarter.

Operational revenue for the quarter was at INR2.66 billion, a 1.7% decrease quarter-on-quarter. The company’s total expenses were at INR3.20 billon compared to INR 3.24 billion in the preceding quarter. Content cost, too has reduced from INR1.39 billion in the last quarter to INR1.36 billion during the current quarter.

As for the digital addressable system, DEN Networks says that it has seeded two million set-top boxes in the Phase III areas. The deadline for the third leg of DAS is 31, December, 2015. Strong STB penetration could help the cable network expand its business in Phase III territories.

In related news, Foreign Investment Promotion Board (FIPB) recently approved multi system operator (MSO) Den Networks’ proposal of increasing its foreign direct investment limit from 49% to 75%.

Den Networks gets board approval to raise foreign investment limit to 74%

Den Networks has received an approval from board of directors to increase the limit of foreign investment from 49% to 74%. However, this hike is subject to the approval from its shareholders and regulatory bodies.

“The board of directors of the company has approved through circulation, increase in foreign investment limit in the company by Foreign Institutional Investors, Foreign Portfolio Investors etc, under the portfolio investment scheme from existing 49% to 74% of the issued and fully paid-up share capital of the company, subject to the approval of the Shareholders, Foreign Investment Promotion Board of India, Ministry of Finance and all other applicable acts, laws, rules, regulations, circulars, directions, notifications, press notes guidelines and statutory approvals, if any,” said Den Networks in a notice.

Den Networks has presence in over 200 cities. It claims to have over 5.7 million digital cable subscribers. Den Networks has incurred a loss of INR626 million in Q3 FY 2015. The MSO has generated a consolidated revenue of INR2.6 billion in the third quarter FY 2014-15 as against INR2.74 billion in the third quarter FY 2013-14.

Nagra Anycast and OpenTV selected by DEN Networks

Nagra Anycast and OpenTV solutions selected by DEN Networks in India

• India’s largest MSO selects NAGRA’s market leading technologies to enable new generation of advanced DTV services
• NAGRA anyCAST content protection and OpenTV middleware will enable fast time-to-market of new services while enabling the secure delivery of the operator’s premium content
• Selection marks the expansion of NAGRA in the Indian market with solutions that support the operator’s growing market reach

CHESEAUX, Switzerland — NAGRA, the Kudelski Group (SIX:KUD.S) digital TV business and the world’s leading independent provider of content protection and multiscreen television solutions, announced today that DEN Networks, India’s largest cable provider, has selected NAGRA anyCAST content protection and OpenTV middleware to support the growing demand for digital TV services in the region and enable their next generation pay-TV offering. This selection marks a significant milestone in NAGRA’s expansion in India.

“DEN Networks is paving the way for a new generation of digital TV services in a region where consumers are hungry for new services and premium entertainment,” said Jean-Luc Jezouin, Senior Vice President, Asia. “Our solutions will help DEN Networks bring a new generation of services to market quickly and efficiently, while ensuring the security of their content and providing a fresh and exciting viewing experience to subscribers. We look forward to supporting DEN Networks as they pursue their digitization efforts.”

NAGRA provides DEN Networks with a fast-time to market solution based on NAGRA’s best-of-breed technologies. It boasts built-in features powered by OpenTV middleware to enable entry-level DTV services while allowing the operator to increase revenue through advanced advertising and PVR. It also includes an intuitive user interface that addresses India’s multi-lingual landscape and is ready-to-deploy on multiple chipsets. Content security is maintained through NAGRA anyCAST, the company’s latest unified security services platform, supporting everything from basic Free-To-View to next-generation 4K services using the industry’s most advanced CAS and DRM technologies.

Den Networks deploys DOCSIS 3.0 technology

Indian multi-system operator (MSO) has extended its association with the technology provider, Cisco, to deploy DOCSIS 3.0 technology to launch next-generation cable broadband services. The MSO will soft-launch its ultra-high-speed broadband service in Delhi and intends to expand the offering to other cities. The DOCSIS 3.0 enables Den to provide a seamless online experience with no buffering, fast downloads and higher-quality video content.

“We are excited by the high-speed Internet opportunity in India. With this superior technology, we are aiming to provide our broadband subscribers with a fast and consistent online experience,” said Mohammad Ghulam Azhar, Chief Operating Officer at Den Networks.

Cisco claims that the DOCSIS 3.0, a key component of the Cisco IP NGN architecture, delivers a speed of 300 Mbps per subscriber. Den is apparently providing provides cable television services to 13 million homes across 200 cities and aims to leverage the untapped, high and highly potential broadband market covering over 100 million cable TV homes in India.

Den CEO talks final Phases of digitisation

Even as the Indian government has declared Phase I and Phase II of the digitisation drive complete, the television industry is already looking forward to adapting to the final stages of digitisation. The CEO of one of the top MSOs in the country, CMD Sameer Manchanda has noted that consumers will drive the final phases.

In a recent interview to a television channel in India, Manchanda said, “It is the consumer who wants digitisation in phase III and phase IV. Seeing the success of phase I and phase II, it’s the consumer in these smaller towns and rural India who are pushing for the digitisation. We are one of the largest players, with a fairly high share of cable TV homes.”

He also added that the process for the final stages will be much smoother than the what took place in Phase I and Phase II. There are expected to be at least 70 to 75 million homes digitised in India during Phase III and Phase IV. And the government plans on completing the process by December of 2014.

Den Networks posts profits

Den Networks, a cable distribution firm based in India has posted a revenue of USD 42.7 million for the most recent quarter. That would be an increase of 32.4% higher than what was posted for the same quarter ending in the previous year which was reported at USD 32.2 million.

In terms of its cable revenue on a year-on-year basis, it boasted an increase of 35%. It currently stands at USD 40.6 million. For the same quarter ending in the previous year, the cable firm reported USD 30.2 million.

Den Network currently has approximately 5 million digital subscribers using its STB connections and accounts for accounts for 26% of all cable STBs in the Phase II market. It was announced in September that Goldman and Sachs, the global investment company was investing USD 110 million and is acquiring 18% stake of Den Networks.