Emkay Global Financial Services' report on Den Networks
Consolidated revenue at Rs2688mn (-2% yoy and -8% qoq) and EBITDA at Rs 3mn, impacted by loss in soccer business. Net loss at Rs626mn vs Rs205mn in Q2FY15
Net subscription revenue of Rs1157mn was flat sequentially while grew 18% yoy. Operating loss of Rs352mn in soccer business and Rs114mn in broadband weighed on operating performance
Implementation of direct billing in Phase II is expected to remain on a slow pace and investments in broadband will continue
Cable Segment- Hopes continue on implementation of direct billing
Revenue at Rs2567mn declined 10.4% qoq while remained flat yoy. Net subscription stood at Rs1157mn, up 18% yoy but flat qoq.
EBITDA at Rs494mn declined 31.2% yoy and 8.9% qoq. EBITDA margin at 19.2% contracted 864bps yoy while remained stable on qoq basis. Stable revenue (net of LCO commission) and 3% qoq increase in cost impacted EBITDA. Net loss was at Rs117mn vs Rs63 in Q2FY15.
"The company seeded 197k vs 220k boxes in Q2FY15 totaling to 6.8mn digitized subscribers out of subscriber universe of ~13mn. Paying digital subscribers stood at 4.2mn (Phase I+II). Maintain REDUCE with revised target price of Rs 137", says Emkay Global Financial Services research report.
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