TV18’s net losses more than quadrupled to Rs. 406.6 million from Rs. 90.05 million in Q1-09 with expenses rising 41.4% to Rs. 1.03 billion in the first quarter of the new fiscal. TV18 runs television channels CNBC TV18 and CNBC Awaaz.
Though revenues for business news channels are yet to recover fully, the company says it is satisfied with the proceedings of the turnaround. Revenues were up 15% year on year to Rs. 1.07 billion. EBITDA turned positive this quarter and operating margins dropped to 3.48% from 21.25%. Depreciation expenses rose to Rs. 122.48 million. Earnings per share without ESOP charge out stood at -Rs. 3.3 while it was -Rs.0.51 in Q1-09.
News Channels Revenue Drops; Net Loss; Market Share Increases
In a show of confidence, the company reiterates that its business channels are capturing more of the market pie – it claims CNBC-TV18’s market share is 1.5 times that of NDTV Profit, UTVi and the new channel floated by BCCL – ET Now.
However, the news operations business saw a 25% drop in revenues to Rs. 568.57 million compared to Q1-09. The quarter recorded a net loss of Rs. 282.68 million compared to profits of Rs. 92.81 in the corresponding quarter last fiscal. The company’s operating margin stood at 17.13% this quarter.
The division’s expenses rose to Rs. 471.2 million and the company has said it will focus on cost-efficiencies. The charge out from ESOPs slumped 63% Rs. 10.82 million from Q1-09 and earnings per share (without ESOP charge out) fell to -Rs 2.27 from Rs. 1.02.
NewsWire18, which has launched its services in two new cities – Guwahati and Nagpur, has seen a pick up in sales as revenues rose 65.5% year on year to Rs. 74.48 million in Q1-10. Net losses dropped to Rs. 14.37 million.
Infomedia18: the company has only provided results for the current quarter, so we will update with QoQ comparisons later. Operating revenue was Rs. 288.12 million, expenses were Rs. 310.09 million and net losses stood at Rs. 23.67 million. The company is betting on Forbes India to boost sales. It is currently undergoing revamping to add more revenue streams and improve cost efficiency.