Network18′s publishing subsidiary Infomedia 18 has witnessed a 75% increase in its losses from Rs 6.12 crore that it reported in the first quarter, last year, to Rs 10.69 crore in the quarter ending 30th June 2011. Total revenues for the company remained stable at Rs 23.59 crore from Rs 23.55 crore that it reported during the same quarter, last year. The company publishes business directories and magazines such as Forbes India, Overdrive, Chip, T3 and Better Interiors.
While the printing business reported revenues of Rs 10.20 crore and profits of Rs 57 lakh, the company’s publishing business saw revenues of Rs 15.05 crore and loss of Rs 11.6 crore.
As we reported earlier, the business directories business, the new media ventures Burrp and Askme.in, and the publishing business of the company will be demerged into Network18 after its restructuring takes place, effective April 1st 2010. The company is awaiting an approval from The Delhi High Court, and accordingly the results have not been affected. However, the company’s Business Directories business, New Media business and Publishing business have been considered as ‘Discontinuing Operations’ and the Printing business has been considered as ‘Continuing Operations’, for this quarter’s results.
The financial report also mentions that the company might sell its Printing Press business, which it has been saying since the last three quarters. Previously, it had sold off its entire stake in its four subsidiaries carrying on the Publishing BPO business, to Knowledgeworks Global Private ltd on May 4th 2010, and had reported a net gain of Rs. 106 lakhs as an exceptional item in its results for the quarter ended 30th June 2010. On subsequent liabilities settlement as per Share Purchase Agreement,the same gain was converted into a net loss on the sale of subsidiaries, amounting to Rs 123.79 lakhs and had been disclosed as an Exceptional item in the results for the year ended March 31, 2011.
Expenses for Infomedia18 increased 20% year on year to Rs. 34.72 crore from Rs 28.93 crore. Employee costs increased about 19% year on year to Rs 10.63 crore. Raw material costs were at Rs. 6.65 crore.