Another quarter goes by and Television Eighteen India, the broadcasting subsidiary of Network18, has not attained break even. It posted lowered net losses of Rs. 415.25 million, down 37.2% quarter on quarter and higher 37.7% year on year, in the quarter ended December 2009.
The company spent Rs. 45 million on a one time restructuring charge “on account of rationalized workforce” in the quarter. This refers to the merging of broadcast operations of TV18’s two business news channels CNBC TV18 and CNBC Awaaz in November.
Contribution Of Divisions To Revenues
Consolidated revenues for TV18 have fallen 1.2% in the December quarter compared to the same period last year and increased 3.9% sequentially. Operating expenses have reduced 7.5% sequentially and 16.6% year on year to Rs. 1157.23 million. TV18 runs TV channels CNBC TV18 and CNBC Awaaz, Web18, which we have covered previously here and Newswire 18, Infomedia 18. They each contributed to the revenues:
- News channels: Rs. 674.02 million, steady over the quarters at 52.2%
- Infomedia18: Rs. 334.35 million, slightly lower contribution at 25.9%
- Web18: Rs. 196.93 million, contribution is up from 12.9% to 15.2%
- Newswire18: Rs. 83.77 million, lowest contributor at 6.49%
Key Corporate Developments During The Quarter
The new look of “Infomedia Yellow Pages” was launched in Bangalore, Delhi, Ahmedabad and Chennai.
The “Know your City” series, powered by Burrp, launched in Hyderabad.
Its car and bike magazine Overdrive got a new format.
Other Divisions Performances
The 2 CNBC channels CNBC TV18 and CNBC Awaaz have lost some market share to other business channels in the quarter – in the September quarter, they owned a combined 65% market share but this has dipped to 62%, according to TAM data in October-November 2009. It continues to stay miles ahead of competitors Zee Business, NDTV Profit, Bloomberg-UTV and ET Now. Last quarter, NDTV Profit was #2 after CNBC TV-18, has it slipped back this quarter?
TV18 has a footnote about TAM TV viewership measurement mechanisms not projecting the actual audience delivery as they do not take into consideration
viewership out of home (OOH) such as corporate offices, institutions, etc.
Capital18 reports its consolidated EBITDA is nearing break even; consolidated revenues have crossed Rs. 100 million per month.
Its print business Infomedia18 expects to recover its revenues, which are down 5.4% sequentially and 25.8% year on year to Rs. 334.35 million and is now attempting to further cut down costs. Operating expenses reduced in the quarter to Rs. 384.37 million and net losses have also reduced to Rs. 56.2 million 45.8% year on year but are up 10% from the September 2009 quarter.
Newswire18, the subsidiary which provides real-time market data and financial news, restructured its product portfolio to save costs even as expenses rose 3 percent year on year to Rs. 78.38 million. It has launched a program to target sales from trials that had earlier not converted to sales. Revenue continues to show single digit growth, up 6 percent from the previous quarter to Rs. 83.77 million (it grew by 5.91 percent in September quarter). Net losses reduced to Rs. 9.2 million from Rs. 13.28 million in the September 2009 quarter.