MUMBAI: Den Networks recently entered into a pact with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN.

Cable television multi-system operator (MSO) Den Networks has bought an additional 37.57 per cent shares in its subsidiary DEN Digital Cable Network, eventually hiking its stake to 88.57 per cent.

"Den Networks Ltd has entered into an agreement with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN from 51 percent to 88.57 percent," Den Networks said in a BSE filing.

The company has purchased the stake from existing shareholders of DDCN, the company added in the filing. The price of additional share purchase is Rs 4.60 crore.

DDCN carries its business of cable services in Gurgaon and the additional acquisition would help consolidate the cable business of the company in the state of Haryana.

Two main segments currently contribute to Den’s revenue: Cable distribution network segment (Cable, Cable business) and Broadband internet segment (Boomband).

Den Networks Ltd (Den) Cable business segment consolidated total revenue (pre-activation) increased 18 per cent in in the quarter ended 30 September 2016 (Q2-17, current quarter) to Rs 258 crore from Rs 231 crore in Q2-16. The company reported consolidated EBIDTA of Rs 34 crore in Q2-17 as compared to Rs 1 crore in the corresponding year ago quarter. Consolidated net loss in Q2-17 more than halved to Rs 48 crore as compared to a loss of Rs 99 crore in Q2-16.

Cable subscription revenue increased 31 percent y-o-y to Rs140 crore in Q2-17 from Rs115 crore in Q2-16. Cable activation revenue increased 17 percent y-o-y to Rs 32 crore from Rs 27 crore. Placement revenue declined 13 per cent y-o-y to Rs86 crore from Rs98 crore.

The company reported 101 lakh DAS subscribers, of which 51 lakh were from DAS phases III and IV for Q2-17. The company had 76 lakh digital subscribers in Q2-16.Den has a cable subscriber base of 1.3 crore.