ITV

Tag: Ebitda

  • Nielsen acquires media & marketing research firm Arbitron

    MUMBAI: Nielsen Holdings, a leading global provider of information and insights into what consumers watch and buy, has said it has signed a definitive agreement to acquire Arbitron, an international media and marketing research firm.

    Nielsen has agreed to acquire all of the outstanding common stock of Arbitron for $48 per share in cash, representing a premium of approximately 26 per cent to Arbitron’s closing price on 17 December.

    Nielsen has a financing commitment for the total transaction amount. The transaction has been approved by the boards of both
    companies and is subject to customary closing conditions, including regulatory review.

    With Arbitron assets, Nielsen intends to further expand its Watch segment’s audience measurement across screens and forms of listening.

    “These integrated, innovative capabilities will enable broader measurement of consumer media behavior in more markets around the world. We will also bring local clients greater visibility to empower more precise advertising placement and campaign effectiveness,” said Nielsen President of Global Media Products and Advertiser Solutions Steve Hasker.

    “Radio reaches more than 92 per cent of all American teens and adults because they love to listen to music, talk, news and information while at home, at work and in their cars,” said Arbitron President and CEO William T. Kerr.

    “By combining Nielsen’s global capabilities and scale with Arbitron’s unique radio measurement and listening information, advertisers and media clients will have better insights into consumer behavior and the return on marketing investments.”

    Together, Nielsen and Arbitron generated total revenues of $6 billion and combined pro forma adjusted Ebitda of $1.7 billion based on the 12 months ended 30 September. Cost synergies associated with the acquisition are expected to be at least $20 million and will be largely driven by the integration of technology platforms and data acquisition efforts.

  • Zee News Ltd to shutter Telugu news channel

    Zee News Ltd to shutter Telugu news channel

    MUMBAI: Zee News Ltd (ZNL) is retreating the Telugu news market. Zee 24 Gantalu has decided to close down next month as it struggled to become economically viable in a crowded marketplace where there are too many politically-oriented channels.

    “24 Gantalu will close down on 20 September. There are 14 Telugu news channels operating in that market and two more are launching. They are politically driven and it does not make sense to continue in that market,” a source familiar with the development said.

    The TV Telugu news ad market is pegged at Rs 1.2 billion. The market leader TV9 takes away a major chunk of this amount, according to an industry source. Price wars are rampant, making channels sell to advertisers at miserable rates.

    “The entire Telugu TV news business is becoming unviable because of too many players and abnormally low ad rates. Other interests rather than business seems to be the primary motive,” says a senior news channel executive.

    ZNL’s decision also comes ahead of its plans to launch an English-language general news channel that will consume heavy capital. The closure of 24 Ghantalu will help cut down ZNL’s losses from new businesses and ease pressure on the company’s operating profit if it goes ahead with the launch of the English channel.

    Indiantelevision.com had reported that ZNL is planning to launch an English news channel towards the exit quarter of the fiscal as digitisation settles in the four metros.

    The operating loss of 24 Ghantalu in FY’12 stood at approximately Rs 140 million, the source said.

    ZNL had reported losses of Rs 227.4 million on a revenue of Rs 131.9 million for the fiscal from its new businesses that include Zee News Uttar Pradesh/Uttarakhand and 24 Gantalu.

    “If the English channel launch is on, the shutting down of a loss-making channel will be seen as a positive move. It will soften ZNL’s pressure on Ebitda from the launch of an English news channel that will consume anywhere between Rs 2.5-3 billion over the first three years,” a media analyst said on condition of anonymity.

    ZNL had reported Ebitda of Rs 533.5 million in FY’12 on a consolidated operating revenue of Rs 3.07 billion. The company runs a cluster of channels including Zee News, Zee Business, Zee 24 Taas, Zee Punjabi and 24 Ghanta.

  • Nielsen Q2 net income jumps to $103 mn

    Nielsen Q2 net income jumps to $103 mn

    MUMBAI: Global research company Nielsen‘s net income for the second quarter increased to $103 million compared to $69 million in the second quarter of 2011, driven by an overall reduction in costs.

    Revenues for the second quarter decreased 1 per cent to $1.38 billion compared to the second quarter of 2011. Adjusted EBITDA for the second quarter increased 1 per cent to $389 million.

    “Nielsen delivered solid second quarter results that reflect the reliable growth and stability of our businesses. We continue to benefit from the value we create for our clients and their confidence in our unique ability to serve the media and consumer goods industries across the globe,” said Nielsen CEO David Calhoun.

    Revenues for the first half of 2012 increased 1 per cent to $2.72 billion compared to the first half of 2011 while adjusted EBITDA for the first half increased 2 per cent to $721 million.

    Net income for the first half of 2012 was $128 million compared to a net loss of $112 million for the first half of 2011. The 2011 first half results included charges of $206 million, net of tax, associated with the IPO.

    As of June 30, 2012, cash balances were $283 million and gross debt was $6.56 billion, excluding the $288 million mandatory convertible subordinated bonds due 2013.

    Net debt (gross debt less cash and cash equivalents) at the end of the quarter was $6.27 billion. Capital expenditures were $152 million for the first half of 2012 as compared to $142 million for the first half of 2011.

  • Eutelsat acquires GE-23 satellite for $228 mn

    Eutelsat acquires GE-23 satellite for $228 mn

    MUMBAI: Satellite operator Eutelsat has concluded negotiations to acquire from GE Capital the GE-23 satellite, associated customer contracts and orbital rights.

     

    The deal for $228 million is expected to close in the second half of the year, subject to regulatory approvals.

     

    Built by Thales Alenia Space, GE-23 was launched in December 2005 and has an expected life of 15 years. From its location in geostationary orbit at 172°E, the satellite offers unique coverage over the Asia-Pacific region via a payload of 20 Ku-band transponders accessing five interconnecting beams and 18 C-band transponders connected to a trans-Pacific beam.

    Leveraging its coverage and high-bandwidth capability, GE-23 offers a broad range of telecom services to a diverse base of blue chip customers.

     

    GE-23 will be integrated into the Eutelsat’s fleet, with a smooth transition for existing customers. It will be renamed Eutelsat 172A.

     

    The opportunity was assessed consistently with the Group’s disciplined approach to both organic and external growth opportunities. The transaction is expected to be accretive to EBITDA margin and to EPS in year 1.

     

    It will be financed through Eutelsat’s existing liquidity. From a leverage standpoint, it will lead to a moderate increase in the Net Debt / EBITDA ratio, and will, therefore, have no material impact on Eutelsat’s financial flexibility.

    Expanding Eutelsat’s reach and commercial offering in Asia

     

    The acquisition of GE-23 fits with Eutelsat’s strategy to expand its presence in the most dynamic geographic regions. The satellite brings coverage of the Asia-Pacific markets where growth is driven by a broad range of applications. It will complement Eutelsat’s organic initiatives, notably the Eutelsat 70B satellite, equipped with a dedicated Asian beam, which is scheduled to launch in the fourth quarter of 2012.

     

    With GE-23, Eutelsat is also acquiring a quality customer portfolio with a strong track record of contract renewals. The extended coverage also opens the way for Eutelsat to broaden its offering to its existing clients and to develop new business.
  • IBN Lokmat Q3 net loss at Rs 30 million

    IBN Lokmat Q3 net loss at Rs 30 million

    MUMBAI: IBN Lokmat continues to be in losses even as it is close to completing three years.

    A joint venture between IBN18 and Lokmat Group, the Marathi news channel has posted a net loss of Rs 30 million for the three-month period ended December 2010. IBN Lokmat had reported a net loss of Rs 40 million in the year-ago period and Rs 60 million in the trailing quarter.

    Revenue has gone up to Rs 50 million, up from Rs 40 million in the year-ago period, as it coincided with the festive season. In the trailing quarter, the company reported a revenue of Rs 30 million.  
         
    IBN Lokmat has not been able to limit quarter expenses, which are at Rs 70 million in the quarter. The figure was same in the year-ago period as well as in the trailing quarter.

    The channel, however, reduced its Ebitda loss to Rs 20 million from Rs 30 million in the corresponding quarter of previous fiscal and Rs 40 million in the trailing quarter.

    IBN Lokmat was launched in March 2008 and faces tough competition from both Zee 24 Taas and Star Majha.
     

  • Zee News Ltd Q3 net profit up as ad revenue surges

    Zee News Ltd Q3 net profit up as ad revenue surges

    MUMBAI: Zee News Ltd (ZNL) has posted a fiscal third-quarter consolidated net profit of Rs 61.84 million (after minority interest), gaining from the festive season and a better all-round performance coming from its old and new channels.

    Advertising revenue has seen a healthy growth while subscription has seen a slower pace in the quarter as it has moved into a fixed fee regime with DTH operator Tata Sky. The company posted a revenue of Rs 744.44 million for the three-months ended December.

    On a more positive note, ZNL has a 18 per cent margin, including the losses from the newly launched channels. The margins stand at 33 per cent for the existing businesses.

    ZNL had posted a net profit of 191.48 million for the third-quarter of FY‘10 on a revenue of Rs 1.71 billion.

    However, the company, which operates the news channels of the Zee brand, said that the corresponding quarter financials are not comparable as there were six regional general entertainment channels at that time under ZNL, which were demerged from the company with effect from 1 January 2010.

    ZNL has posted a strong sequential growth. For the fiscal second-quarter, the company reported a net profit of Rs 2.24 million on a revenue of Rs 615.87 million.

    ZNL chairman Subhash Chandra said, “The news genre on television is marked by intense competition in India, unlike any other country in the world. Most news channels in India are incurring losses. Our objective is to create a focused news organization which can create value for the shareholders in the long term. I am happy that Zee News Limited, not only differentiates itself by delivering unbiased, serious and credible news to its viewers, but does it profitably.”

    He added, “Our company continues to outperform competition due to its quality of manpower, which is kept motivated with several training schemes to build leadership in the organisation. We aim to create a news powerhouse which is close to the action and can reach out to every viewer in his/her preferred language and I am happy to say that we are progressing very well toward the goal.”

    ZNL MD Punit Goenka added, “Zee News Limited has shown significant growth in profitability in this quarter. Evidently, the editorial and business decisions taken by the company in the recent past are reaping rich dividends. The consistent emphasis on serious news has made Zee News Limited not just the largest, but also the No. 1 news network of India. The leadership position of the network has in turn helped augment the company’s financial position thus creating a win-win situation. Business performance during the slowdown and beyond shows great potential of growth from here. I am hopeful of continued improvement in business performance as we start are planning for the next fiscal.”

    Ebitda for the quarter under review stood at Rs 134.5 million and profit before tax at Rs 103.6 million In the previous quarter, Ebitda was Rs 70.2 million and PBT Rs 32.1 million.

    ZNL‘s advertising revenue grew stood at Rs 541.7 million, as compared to Rs 407.2 million in in trailing quarter (for year ago period figures see table). Subscription revenue for the quarter was Rs 185.9 million, which constituted 25 per cent of the total revenue.
      
           
      Though, the company has seen a surge in ad revenue (sequentially), the subscription revenue has fallen as compared to Rs 194.1 million in previous quarter (31.5 per cent of the total revenue).

    The expenses of the company stood at Rs 609.9 million, slightly higher on a sequential basis (Rs 545.7 million). In the year ago period, the expenses were Rs 1.34 billion.

    ZNL posted Ebitda profit of Rs 225.2 million (186.8 million in previous quarter) from its existing business (Zee News, Zee Business, Zee 24 Taas, Zee Punjabi and 24 Ghanta). The company, however, suffered Ebitda loss of Rs 90.7 million (from loss of Rs 116.5 million) from its new business (Zee Tamizh, Zee 24 Ghantalu and Zee News UP).

    ZNL CEO Barun Das said, “ZNL has shown that pragmatic and creative approach works best in the news market – national and vernacular. EBITDA margin of 18 per cent is quite healthy considering that there are three new channels which are still on way to break even; whereas the EBITDA of Rs 225.2 million and margin of 32.6 per cent for the group of existing channels demonstrates the quality of operational efficiency. In the context, the all-round performance of our bouquet of channels would continue to be our critical success factor. Our focus on “news that matters” has established our credentials as a network.”
     

  • Rough Q2 for TV news firms

    Rough Q2 for TV news firms

    MUMBAI: News channels are badly bruised by an ad slump in the second quarter as monies have shifted to Hindi general entertainment and sports channels.

    The turnover of most of the listed news companies has eroded in a quarter when other genres of broadcasting have gained in an improved advertising economy.

    TV Today, which runs India’s most popular Hindi news channel Aaj Tak, has seen a 6.6 per cent revenue fall over the year-ago period due to lower inventory utilisation. NDTV’s second-quarter revenue from the news business also slipped 6.1 per cent.

    “There is a growing concern that TV news business in India is going through a rough patch. The third quarter will see a significant recovery due to the festive season but we could be headed for a slow revenue growth for the sector in the backdrop of increasing commoditisation,” said a media analyst who has been tracking the sector.

    TV Today’s consolidated Ebitda, in fact, turned negative for the first time in 24 quarters. Net loss stood at Rs 76 million.

    “While revenue fell, staff and distribution expenses grew. Investments also went into Headlines Today and Tez for their revival. The third quarter will see a drastic improvement and TV Today will turn profitable again,” an analyst said.
      
         
      For the TV broadcasting segment, TV Today posted a revenue of Rs 596.22 million and an operating loss of Rs 40.57 million. In the trailing quarter, the company had posted a revenue of Rs 641.39 million and an operating profit of Rs 49.05 million.

    NDTV suffered from weak sales and posted a standalone Ebitda loss of Rs 233 million and net loss of Rs 343 million.

    “It has been a bad quarter generally for everybody in the news business from a revenue perspective. There has been a shift in advertising from news to GECs and sports channels. In the earlier year, some stability had come into the market in the second quarter. But the good news is that there seems to be a strong recovery in the third quarter coinciding with the festive season,” said NDTV Group CEO KVL Narayan Rao.

    TV18 improved its performance in the fiscal second-quarter but IBN18 Broadcast continues to post losses.

    Zee News Ltd chief executive officer Barun Das feels the decision to stick to hard news has worked for the company. “It has not been one of the best quarters for TV news. But we have seen revenue growth. We have the advantage of having regional news channels in our network. Sticking to hard news has worked for us. On the Ebitda level, we have performed beyond our expectations in the first two quarters. We were expecting to be Ebitda negative but have turned positive,” he said.

  • TV Today’s print plans

    TV Today’s print plans

    MUMBAI: TV Today Network will hold a strategic investment of 13 per cent in Mail Today Newspapers and plans to also directly pursue print expansion in the languages segment.

    The company, which owns and operates a clutch of news channels including Aaj Tak and Headlines Today, has already paid Rs 370 million out of the deal amount of Rs 455 million.

    “The investment in Mail Today is strategic. The print expansion plan will be outside this,” a source close to the company said.

    Mail Today, a daily newspaper in compact format, is a joint venture between the India Today Group and Daily Mail of London.

      TV Today is researching into how it can expand into print. It plans to get into regional language newspapers, the source added.

    TV Today chief executive officer G Krishnan was not available for comment.

    The company had earlier acquired the radio business of Radio Today Broadcasting, a promoter group company, for a valuation of Rs 1.2 billion.

    Some media analysts feel cracking the newspaper language markets will be very difficult as there are existing players strongly entrenched in them.

    ”We are unhappy with the radio acquisition, especially due to the high valuation. It is better if TV Today launches regional news channels rather than entering print (a high gestation period business) or the radio space (a highly competitive and extremely small revenue potential media vertical). The entry into radio and print could be value destructive,” an analyst at a broking firm said.

    A media observer, however, said the revenue and valuation potential would be much higher in case of print. “They will expand into regional news channels as well. They are waiting for the right time.”

    TV Today’s consolidated second-quarter Ebitda turned negative for the first time in 24 quarters as revenue dipped 6.6 per cent while expenses climbed. Net loss for the three-month period ended September 2010 stood at Rs 76 million. The company, however, is expected to post a strong revenue growth in the third quarter and be profitable.
     
     

  • IBN18 narrows standalone net loss to Rs 170 million

    IBN18 narrows standalone net loss to Rs 170 million

     MUMBAI: IBN18 has narrowed its standalone net loss for the quarter ended 30 September to Rs 170 million, as against a net loss of Rs 600 million in the corresponding quarter of the previous fiscal.

    Even on a quarter-on-quarter basis, the net loss is less compared to that of Rs 190 million in the first quarter of the fiscal.

    The standalone results constitute the financials of CNN IBN and IBN7.

    The income from the quarter under review jumped 30 per cent on a year-on year basis. But on a Q-o-Q basis, it has remained almost flat at Rs 520 million.
    Meanwhile, expenses at Rs 590 million rose marginally over the earlier year, but remained same as compared to the previous quarter.

    The standalone Ebitda loss was at Rs 70 million, less than Rs 170 million it incurred in the year-ago period.

    IBN18‘s consolidated net loss stood at Rs 130 million. Total income was at Rs 1.89 billion, while expenditure stood at Rs 1.87 billion for the quarter.

  • IBN Lokmat Q1 narrows net loss to Rs 40 mn

    IBN Lokmat Q1 narrows net loss to Rs 40 mn

    MUMBAI: Marathi news channel IBN Lokmat has narrowed its first-quarter net loss to Rs 40 million as revenue jumps over the earlier-year period.

    A joint venture between IBN18 and Lokmat Group, IBN Lokmat had kicked in losses of Rs 70 million in the year-ago period.

    Income from operations jumped 194 per cent to Rs 40 million, from Rs 10 million in the first quarter of FY‘10.

    Revenue, however, has dropped from the trailing quarter which had seen an income of Rs 50 million.  
         
      Operating loss (Ebitda) dropped to Rs 30 million, from Rs 60 million in the prior year. However, it was higher than Rs 20 million posted in the trailing quarter.

    IBN Lokmat‘s expenses remained flat at Rs 70 million, indicating that costs had more or less stabilised.