NDTV subsidiaries, NDTV Worldwide and NDTV Convergence have picked 37.55% stake and 33.2% stake respectively in the group’s upcoming e-commerce venture, NDTV Ethnic Retail Ltd for a total consideration of Rs 4.2 lakhs on March 26, 2013. This was disclosed by the company in its latest quarterly results (pdf).
In February 2013, NDTV had informed that NDTV Worldwide had received the board’s approval to foray into e-commerce segment. NDTV Worldwide is the media services division of NDTV, and offers services like setting up and managing channels to broadcast training, channel branding and technology consultancy.
While the company hasn’t disclosed any specific information on this venture yet, we had earlier heard from sources that the venture will target Indian diaspora with ethnic wear, which is strengthened by the fact that the venture is called NDTV Ethnic Retail.
NDTV had also roped in Fashion And You co-founder Rahul Narvekar to head its e-commerce operations in February 2013 and Narvekar’s LinkedIn profile suggests that he has been appointed as the CEO of NDTV Ethnic Retail in April 2013.
NDTV Convergence And NDTV Labs Merger: It looks like the merger of NDTV Convergence Ltd and NDTV Labs still hasn’t started yet. In February 2013, NDTV had informed that both the entities will be merged to a new unnamed subsidiary and this merger had received an in-principal approval from the company board on November 1, 2012.
Financials: NDTV posted a total revenue of Rs 186.56 crore for the quarter ending March 31, 2013, up from Rs 137.96 crore revenues in the same quarter last year. The company reported net profit after tax of Rs 27.81 crore for the quarter, a significant improvement from Rs 41.33 crore loss in the same quarter last year.
For the year ending March 31, 2013, NDTV reported total revenues of Rs 526.81 crore and a net profit of Rs 1.91 crore, as compared to Rs 483.37 crore revenue and Rs 87.38 crore loss in the previous year.