Media company NDTV is going to reduce the number of personnel by over 20% in the immediate term, which the company claims will help it in cash reduction in several cost heads in the near future. According to our sources, around 55 people were asked to leave on the 26th of this month; we’ve written to NDTV to confirm this. Salary cuts have also been effected and both management and staff have also accepted no increments for the year. The company is targeting a cost reduction of over 20%
NDTVs standalone results reflect a significant increase in personnel expenditure – from Rs. 953 million for FY08 to Rs. 1.34 billion in FY09, and things haven’t been helped by operating income remaining flat Rs. 3096.1 million, compared to Rs. 3056.2 million for FY08.
On a standalone basis, NDTV has reported a net loss for Rs. 731.8 million, owing to a Q409 loss of Rs. 447.4 million. For FY08, NDTV had reported a profit of Rs. 428 million, and a profit for Q408 of 33.1 million. There has been. The company claims that the effect of cost reductions and improved efficiency will begin to reflect in the financial results from the next quarter.
Consolidated Results: Profitability Due To NBCU Stake Sale
NDTV has reported a consolidated net profit of Rs. 1.198 billion for the financial year ended March 31st 2009, up from a net loss of Rs.1.856 billion for FY08. However, this return to profitability was faciliated by a “a stake sale” during the fiscal, in a subsidiary. Remember that NDTV raised around $150 million (around Rs. 6.42 billion) from NBC Universal for NDTV Networks PLC, it’s UK based subsidiary.
According to NDTV, the setting up of NDTV Imagine during the fiscal has contributed to the operating loss. The company claims top position for NDTV Good Times in the lifestyle genre. The Awani Channel in Malaysia has started reporting operating profits
As expected, there is little about NDTV Covergence – only that NDTV.com’s pageviews increased 180% during the last year. More on NDTV Convergence in our interview with outgoing CEO Sanjay Trehan, here.