ITV

Tag: ESOP

  • Asianet News rolls out employee stock ownership plan

    Asianet News rolls out employee stock ownership plan

    Mumbai: Asianet News Media and Entertainment has rolled out an employee stock ownership plan (ESOP).

    The stock option plan will be extended to Asianet’s long-term employees as well as new team members who have displayed exceptional performance, said the statement.

    “ESOPs form a critical part of employee value proposition and we want to reward those going over and above their responsibilities,” said Asianet News chief operating officer Ruchir Khanna. “The policy has already been initiated and the ESOPs have been granted to the employees who have been an important part of Asianet’s growth. This shall remain open to other employees falling in the eligibility criteria in the future as well.”

    The group has a multi-media presence across the country in multiple languages via its digital platform, TV channels, print publication and radio channels.

    “It is a matter of great privilege and pride that we are able to recognise our team members, who have been a part of our business growth story, as shareholders,” said Asianet News chief business officer Samarth Sharma. “This initiative should provide a fillip to our employees to work towards a common goal. We’d also like to thank our client and agency partners besides our strategic partners for their support in our growth.”

  • NDTV wins 2007-2008 tax appeals case

    NDTV wins 2007-2008 tax appeals case

    MUMBAI: Delhi-based news broadcaster the Prannoy Roy-headed NDTV has been caught up in a legal tangle with the income tax (IT) department for sometime. Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009.

    The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore which the department wanted to add to its taxable income. The ITAT rejected this claim entire amount, with the exception of Rs 12 lakh.

    The ITAT also allowed directed the IT department to allow it higher ESOP expenses of Rs 43.55 crore, against the earlier claim of Rs 21 crore. This has reduced the tax liability for NDTV for that period even further.

    NDTV won the ITAT’s nod on another ground too: it agreed that the company had correctly disclosed its international transactions with its associated enterprises including the provision for shareholder services on which no markup is required to be charged under transfer pricing regulation and negated the claim of the IT department of charging a notional markup on such services. Consequently, NDTV has got a tax relief to the tune of Rs 82.35 lakh in this regard.

    NDTV has other cases from IT department pending for other assessment years.

    The company notched up a loss of Rs 38 crore in its latest financial filings for Q1 2017 on a topline of Rs 115 crore.

    Its share was trading at Rs 78 odd at the close of trading last week.

  • NDTV wins 2007-2008 tax appeals case

    NDTV wins 2007-2008 tax appeals case

    MUMBAI: Delhi-based news broadcaster the Prannoy Roy-headed NDTV has been caught up in a legal tangle with the income tax (IT) department for sometime. Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009.

    The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore which the department wanted to add to its taxable income. The ITAT rejected this claim entire amount, with the exception of Rs 12 lakh.

    The ITAT also allowed directed the IT department to allow it higher ESOP expenses of Rs 43.55 crore, against the earlier claim of Rs 21 crore. This has reduced the tax liability for NDTV for that period even further.

    NDTV won the ITAT’s nod on another ground too: it agreed that the company had correctly disclosed its international transactions with its associated enterprises including the provision for shareholder services on which no markup is required to be charged under transfer pricing regulation and negated the claim of the IT department of charging a notional markup on such services. Consequently, NDTV has got a tax relief to the tune of Rs 82.35 lakh in this regard.

    NDTV has other cases from IT department pending for other assessment years.

    The company notched up a loss of Rs 38 crore in its latest financial filings for Q1 2017 on a topline of Rs 115 crore.

    Its share was trading at Rs 78 odd at the close of trading last week.

  • Q1-2014: Den Networks continues to rake in the moolah albeit with some hiccups

    Q1-2014: Den Networks continues to rake in the moolah albeit with some hiccups

    BENGALURU: Indian cable TV distribution company Den Networks Limited (Den Networks) seems to be on a roll. Its cable business PBT in Q1-2014 was Rs 32.77 crore despite a 22 per cent rise in depreciation and finance costs as against Rs 36.81 crore in Q4-2013.

     

    Den Networks cable business PBT in Q1-2014 was Rs 32.77 crore as compared to Rs 18.40 crore in Q1-2013, up 78 per cent y-o-y. The company’s PAT (before mark to market forex losses, exceptional one-time and ESOP expense) for Q1-2014 was Rs 19.22 crore versus Rs 17.04 crore in Q1-2013, a 13 per cent rise as compared to Q4-2013. After these adjustments, Den Networks cable business PAT stood at Rs 9.22 crore.

     

    Den Networks cable business EBITDA for Q1-2014 was Rs 85.84 crore as against. Rs 43.82 crore in Q1-2013, a 96 per cent y-o-y jump, and was seven per cent more than the Rs 80.33 crore in Q4-2013.

     

    The company’s consolidated EBITDA for Q1-2014 was Rs 87.68 crore, almost double (up by 95 per cent) the Rs 45.06 crore in Q1-2013, but only 3.22 per cent more than the Rs 84.94 crore in Q4-2013.

     

    Let us look at Den Networks other figures for Q1-2014

     

    Den Networks’ consolidated revenue for Q1-2014 was Rs 275.42 crore as compared to the Rs 200.60 crore in Q1-2013, up by 37 per cent y-o-y, but was slightly lower (by 1.04 per cent) than the Rs 278.31 crore for Q4-2013.

     

    The cable distribution company’s consolidated PBT for Q1-2014 was Rs 34.49 crore while consolidated PAT for the quarter stood at Rs 10.15 crore which included the impact of mark-to-market forex losses of Rs 10 crore and higher depreciation and finance costs compared to Q4-2013.

     

    Den Networks cable business revenue for Q1- 2014 was Rs 262.85 crore as compared to the Rs 264.93 crore in Q4-2013. Revenues in Q4-2013 included Rs 15.10 crore on account of a one-time sale of Set Top Boxes (STBs). Excluding the impact of this sale, Den Networks cable business revenues grew by 5.2 per cent q-o-q (as compared to Q4-2013).

     

    Den Networks’ consolidated expenditure for Q1-2014 at Rs 187.74 crore was up 20.9 per cent as compared to the Rs 155.54 crore in Q1-2013, but was 2.9 per cent lower than the Rs 193.37 crore for Q4-2013.

     

    Consolidated operation, administrative and other costs for Q1-2014 at Rs 160.70 crore were up 20.4 per cent as compared to the Rs 133.52 crore in Q1-2013 but 2.4 per cent lower than the Rs 164.68 crore in Q4-2013.

     

    Den Networks consolidated Personnel cost for Q1-2014 at Rs 27.04 crore was 28 per cent more than the Rs 22.02 crore for Q1-2013, but 5.75 per cent lower than the Rs 28.69 crore in Q4-2013. Consolidated depreciation for Q1-2014 at Rs 33.22 crore was more than double (more by 113.5 per cent) as compared to the Rs 15.56 crore in Q1-2013 and 21.8 percent higher than the Rs 27.27 crore in Q4-2013.

     

    Consolidated interest and other financial charges of Rs 19.97 crore were more than double the Rs 9.97 crore for Q1-2013 and 22.1 per cent more than the Rs 16.36 crore in Q4-2013.

     

    Den Networks CEO S N Sharma said, “With the successful implementation of digitisation in Phase II cities, India is now firmly in the digital era. The overall response from consumers is extremely positive as they can now clearly perceive the benefits of digital and the superior experience associated with it. The major focus areas now are the completion of package selection by subscribers, collection of KYC data and the start of retail consumer billing, which are being spurred on by MSOs with a strong regulatory backing. These steps will truly complete our industry’s transformation into a B2C model. We are also drawing up plans for digitising our analog base in Phase III and IV cities while gearing up for our broadband foray.”

     

    Den Networks recently launched two digital cable channels – DEN Movies and DEN Classic, available to Den Network subscribers in selected areas. The company says that it sees the local cable channel segment become a potential growth area along with the spread of digitisation.

  • Zeel’s Q1-2014 PAT up by 42.6 per cent (y-o-y)

    Zeel’s Q1-2014 PAT up by 42.6 per cent (y-o-y)

    BENGALURU: Content and broadcast player Zee Entertainment Enterprises Limited (Zeel) unaudited results for Q1-2014 reported a growth of 42.6 per cent ( y-o-y) PAT, with a PAT margin of 23 per cent at Rs 223.9 crore as compared to the Rs 157 crore during the corresponding quarter of FY-2013. Consolidated operating revenues were up 15.5 per cent (y-o-y) at Rs 973.3 crore during Q1-2014 from the Rs 843 crore reported for Q1-2013.

    Let’s take a look at Zeel’s Q1-2014 performance

    Advertising revenues for Q1-2014 were higher at Rs 530.1 crore, recording an 18.5 per cent growth over Q1-2013’s Rs 447.2 crore.

    Zeel’s subscription revenues for Q1-2014 were also up by 16.5 per cent at Rs 421.1 crore as compared to the Rs 361.1 crore during corresponding period last year. Zeel’s domestic subscription revenues stood at Rs 316.8 crore (up 26.5 per cent as compared to Q1-2013); while its international subscription revenues were Rs 107.3 crore for Q1-2014 (down 5.6 per cent y-o-y as against Q1-2013.

    Other sales and services revenues were down 39.7 per cent for Q1-2014 at Rs 19.1 crore as compared to Rs 31.7 crore during Q1-2013.

    Zeel’s operating costs increased 9.6 per cent to Rs 410.8 crore for Q1-2014 from Rs 375.7 crore in Q1-2013. Its employee costs increased 7.7 per cent to Rs 95.6 crore from Rs 88.6 crore during Q1-2013. Selling and other expenses saw a 20.7 per cent jump to Rs 175.4 crore during Q1-2014 from Rs 145.3 crore reported in Q1-2013.

    Zeel offered and allotted 55,48,400 equity shares at a price of Rs 119.90 per share upon exercise of ESOP by its employees during Q1-2014. During the AGM held in July 2013, Zeel shareholders passed a special resolution approving enhancement of FII limits in the company beyond the current limit of 49 per cent to the maximum sectorial limit allowed under FDI applicable regulations.

    Zeel chairman Subhash Chandra said, “The economy during the quarter has continued to face challenges due sharp depreciation in rupee against major currencies leading to elevated current account deficit, balance of payment, inflation and adverse fiscal deficit. In spite of this lackluster growth television media industry has posted a comparatively robust growth on back of sustained advertisement spends by the consumer goods sector.”

    “Our performance during the quarter reflects the investments that Zee is making to grow its business and market share. This has been accompanied by a strong improvement in operating performance of the company during the quarter. In a highly competitive space, Zee continues to build its media assets and in the process continues to create value for the shareholders. We have a strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us,” added Chandra.

    Zeel managing director and CEO Punit Goenka said, “The subscription revenue during the quarter has shown robust increase and with digitization rollout, will improve medium term. Sports performance for the quarter has been good, but due to heavy sports calendar and rupee depreciation, the business is expected to be in losses for some time.”

    “The phased implementation of Trai regulation with respect to advertising inventory based on clock-hour has started and in expected to be fully in place by the end of second quarter, DAS in phase I and II also moved a step further with MSOs’ making substantial progress in capturing consumer data and taking first steps towards implementing packaging”, added Goenka.

    “While competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. Our content focused approach combined with better monetization of subscription revenues, will contribute to company delivering steady return in the years ahead”, added Goenka further.

  • Slowdown hurts TV18, Q1 net loss at Rs 242.5 million

    Slowdown hurts TV18, Q1 net loss at Rs 242.5 million

    MUMBAI: The economic downturn continues to hurt news channels even in the first quarter of the fiscal. TV18 has slumped into net loss of Rs 242.46 million, compared to a profit of Rs 126.60 million a year ago, as revenue has slowed with companies cutting advertising spending in a recession-ridden market.

    TV18, which owns and operates business news channels CNBC TV18 and CNBC Awaaz, has seen a 24.53 per cent decline in the first-quarter revenue to Rs 568.57 million, as against Rs 753.35 million in the corresponding quarter of the previous year.

    Operating expenses stood at Rs 471.20 million, as against Rs 469.65 million in the first quarter of FY’08.

    Says TV18 MD Raghav Bahl, “While our business news channels have continued to build on their dominant positions in the face of new launches, revenues have yet to recover fully.”

    On a consolidated basis, TV18 posted a net loss (profits after tax and before minority interest and ESOP charge out) of Rs 416.35 million for the quarter ended 30 June 2009. This is higher than the year ago loss of Rs 57.65 million.

    The consolidated results include financials of Web18, Newswire18 and Infomedia18.

    Consolidated revenue for the quarter went up by 15.41 per cent to Rs 1.07 billion, as against Rs 929.92 million in the previous fiscal. Operating expenses surged 41.46 per cent to Rs 1.04 billion (from Rs 732.31 million).

    Says Bahl, “We are happy to report an incipient turnaround in the company’s operations, after two extra-ordinarily tough quarters.”

    Web18, which houses the web properties of the group including in.com, has reported a net loss of Rs 88.23 million as against a net loss of Rs 81.41 million. Revenue from operations were up marginally at Rs 142.10 million, from Rs 131.58 million in the same period of the previous fiscal.

    “Web18 has cut its operating losses sharply, as it moves out of investment phase. In.com, Moneycontrol.com and ibnline.com have strengthened their leadership positions, while other portals are acquiring new audiences,” says Bahl.

    Newswire18, on the other hand, has shown a 65.55 per cent rise in revenue at Rs 74.48 million (against Rs 44.99 million). The net loss of the company came down to Rs 14.37 million in the quarter, as compared to Rs 38.04 million.

    “Newswire18 revenues have been buoyant, and its operations are close to breaking even,” adds Bahl.

    Infomedia18 has posted a revenue of 288.12 million and operating loss of Rs 21.97 million. The net loss (before minority interest) was at Rs 71.30 million.

    Says Bahl, “Infomedia18’s operations have been restructured, cutting down operational losses to a fraction of earlier levels. Forbes India has generated a strong launch momentum with paid copies and subscription numbers tracking ahead of business plan. We are satisfied that the operational turnaround is proceeding according to our expectations.”

  • NaiDunia, Pocha buy NewsX

    NaiDunia, Pocha buy NewsX

    MUMBAI: The first of the mergers and acquisitions hit the media world just 9 days into the new year. INX News Pvt Ltd, part of the Peter Mukerjea, Indrani Mukerjea- owned INX Group, has been hawked off to Indi Media, a newly formed joint venture between NaiDunia promoter and CEO Vinay Chhajlani and former Businessworld editor Jehangir S Pocha. INX News runs the English language channel NewsX.

    Details of the transaction were not available, but Chhajlani confirmed that the deal had indeed taken place. Pocha too confirmed that Indi Media had bought out the entire holding of the existing investors in INX News. He added that he will be taking on a strong editorial role in the company.

    The employees of NewsX will continue to hold eight per cent ESOPs, parcelled out to them by the founder-promoters.

    Exiting from the TV news venture a little before a year of existence, INX Media founder and CEO Indrani Mukerjea’s pursuit was to create NewsX as a premier English news channel brand. While the promoters held 66 per cent in the news company, INX Media, supported by a clutch of private equity firms, had 26 per cent.

    INX News ran into rough weather pretty early with editor-in-chief Vir Sanghvi and his core team leaving the set-up amid controversial circumstances even before the launch of the channel.

    INX Media still runs a Hindi general entertainment channel 9X and a Bollywood music channel 9XM. The company is in talks to raise funds and has stopped airing fresh content on 9X.

    Chhajlani runs a Hindi newspaper with a footprint in Madhya Pradesh and has also created web and new media assets. TV broadcasting was a missing piece in his media plan.

    “We took over two months to value NewsX and found it a good pick. The English news space is not so cluttered and we were drawn in by the investments INX News had made into technology and infrastructure,” Chhajlani says.

    INX News had been talking to Rajeev Chandrasekhar’s Jupiter Capital and Dainik Bhaskar promoters, but could not come to an agreement on the price.

    Analysts closely tracking the sector say that Indi Media would not have paid much above the English news channel’s set-up cost. Both Indrani and Peter could not be contacted to obtain their comments on the acquisition price.

  • TV18 Q2 net loss at Rs 245.57 million

    TV18 Q2 net loss at Rs 245.57 million

    MUMBAI: TV18 has posted a consolidated net loss of Rs 245.57 million (after ESOP charge out) for the quarter ended 30 September 2008, as against a profit of Rs 49.67 million in the year ago period.

    During the quarter, the company’s income has increased from Rs 1.30 billion as compared to Rs 882.98 million in the corresponding quarter last fiscal.

    The company has taken control of the board of directors of Infomedia18 Limited on 21 August and consequently the results of Infomedia18 Limited have been consolidated for the period from 21 August to 30 September on the basis of the management control.

    TV18 MD Raghav Bahl said: “We have managed to grow our business news revenues in a very tough operating environment. That is a splendid testimony to the robust programming, audience loyalty and brand premium built by CNBC-TV18 and CNBC-Awaaz. Although operating margins have dropped from the steady 50 per cent seen during the preceding bull market, we are satisfied by the fact that we have managed to hold around the 40 per cent mark, and have grown both our revenues and operating margins compared to the previous quarter. We hope to maintain the current performance of our business news operations for the rest of the year.”

    Net profit (after Esop charge out) from news operations of the company, which include CNBC TV18 and CNBC Awaaz, has slipped to Rs 76.06 million in the second quarter of this fiscal, from Rs 156.93 million in the prior year quarter.

    Revenue from news operations has seen a downfall to Rs 808.23 million, from Rs 735.05 million in the year ago period.

    Newswire18’s net loss stood at Rs 40.26 million in the second quarter. Revenue from Newswire18 has seen a growth of 107 per cent to stand at Rs 51.20 million, from Rs 24.69 million in the year ago period. It is planning to distribute terminals in overseas market.

    Infomedia’s net loss stood at Rs 1.10 million while revenue earned from operations is Rs 290.48 million.

  • Roys buy back 7.7% NDTV stake from GA Global Investments for Rs 1.9 billion

    MUMBAI: New Delhi Television Ltd’s founder-promoters Dr Prannoy and Radhika Roy have paid around Rs 1.92 billion to buy 7.73 per cent stake from GA (General Atlantic) Global Investments, increasing their stake in the news media major to 61 per cent.

    Meanwhile, 7.67 per cent of NDTV shares were pledged with Indiabulls Financial Services. “It seems NDTV promoters have pledged their shares while also making a 7.73 per cent (4.8 million equity shares) market purchase from GA Global Investments,” says a source.

    The foreign holding in NDTV has dropped to around three per cent after the purchase of GA Global Investments by the promoters. The government regulation stipulates that news channels uplinking from India can have a maximum of 26 per cent foreign holding.

    “The promoters wanted to increase their stake as it would provide them some space to dilute when they want to. After doling out ESOPs, the promoter holding would have fallen from 53.2 to 51 per cent. The government regulation asks promoters to hold at least 51 per cent in the news venture,” says the source.

    The purchase also allows foreign institutional investors (FIIs) and NRIs to acquire that many shares more in NDTV till the ceiling of 26 per cent is reached.

    The promoters had announced in late 2005 their intent to transfer 15 per cent of their stake to daughter Tara Roy who is a non-resident Indian. But the proposal has still not received regulatory approval.

    “If the proposal to gift 15 per cent still stands, it will limit NDTV’s opportunity to get in a foreign strategic investor. But if that is dropped, then the equations change,” says an analyst with a global broking firm.

    The analyst also points out that NDTV’s general and business news channels are held in the same company. “In case of TV18 Group, it is housed in two separate entities with Global Broadcast News (GBN) holding the general news space,” he adds.

    Following the market purchase, the promoters of NDTV have made an open offer to acquire 20 per cent equity in the company at a price of Rs 438.98 per share. “This is part of the Sebi (Securities and Exchange Board of India) regulation for promoters who increase their stake by over 5 per cent in a financial year. The pricing fixed by the promoters is not aggressive for shareholders to offload. But if they manage to mop up more shares at that price, it will be good,” says the analyst.

    NDTV shares closed on Monday at Rs 462.60 on the BSE, up 0.6 per cent from the previous close.

  • TV18 Q2 consolidated revenue up 67 % at Rs 883 million

    MUMBAI: TV18’s consolidated revenue grew 67 per cent year-on-year to be at Rs 882.97 million for the quarter ended 30 September 2007.

    Revenue from news operations was at Rs 735.05 million, up from Rs 476.92 million a year ago. Profit (after tax and ESOPs) in this segment was at Rs 156.93 million, as against Rs 119.40 million.

    Though revenue from the internet and software operations more than doubled to Rs 123.23 million (from Rs 53.16 million), TV18 incurred a loss (after tax and minority interest) of Rs 77.38 million as against a profit of Rs 16.36 million in the corresponding quarter of the previous year.

    Newswire18’s revenue jumped to Rs 24.69 million, compared with Rs 8.93 million in the previous quarter. Loss (after tax and minority interest) has improved to Rs 29.86 million, from Rs 49.92 million.

    Said TV 18 MD Raghav Bahl: “Our channels are maintaining their leadership positions and revenues from Newswire18 are growing strongly. We are investing aggressively in Web18 as Internet remains a key focus area.”