ITV

Tag: FY’08

  • Revenue slowdown crimps TV Today’s profit growth

    Revenue slowdown crimps TV Today’s profit growth

    MUMBAI: A slowdown in revenue growth has crimped TV Today Network’s net profit in FY’09. For a company conscious of shoring up profitability at the cost of expansion for turnover growth, a 23 per cent fall is surely a setback.

    While the company’s revenue grew at a steady clip over the last few years, it was unable to sustain the momentum in FY’09. Used to over 20 per cent growth over the last few years, TV Today posted a revenue growth of just 9 per cent in FY’09 amid a slump in the advertising spend among companies.

    Total income stood at Rs 2.74 billion in FY’09, compared to Rs 2.51 billion a year ago. Expenses grew at the same rate as the last few years, from Rs 1.68 billion in FY’08 to Rs 2.05 billion in FY’09.

    The chart below shows the company’s performance over the last few years.

    31-Mar-09

    31-Mar-08

    31-Mar-07

    31-Mar-06

    Total Income (Rs millions)

    2,741.98

    2,514.20

    2,024.40

    1,678.90

    YOY growth%

    9.06

    24.19

    20.58

    Expenditure (Rs millions)

    2,059.02

    1,685.10

    1,372.00

    1,075.20

    YOY growth%

    22.19

    22.82

    27.60

    Net Profit (Rs millions)

    335.5

    435.5

    310.9

    277.7

    YOY growth%

    -23.0

    40.1

    12.0

    An average performance by TV Today in the last two quarters of FY’09, as compared to the corresponding quarters of FY’08, has helped worsen matters.

    The graph below shows the total income of the company across all quarters of FY’08 and FY’09. The dip in revenue towards the end of the year is evident from this.

    The drop in profit is indicated in the graph below.

    TV Today had incidentally lowered its expenses in the last quarter, perhaps in anticipation of tough times. The expenditure over the quarters is shown below.

    Q1

    Q2

    Q3

    Q4

    Expenditure

    551.69

    588.9

    579.24

    531.8

    TV Today has kept its expansion plans on hold, waiting for better market conditions. Till then, it will have to weather the rough weather.

  • Network18 FY’09 net loss at Rs 1.8 billion

    Network18 FY’09 net loss at Rs 1.8 billion

    MUMBAI: Network18 Media and Investments Ltd, which has gone on an expansion overdrive, has felt the slowdown effect and posted a net loss of Rs 1.8 billion for the year ended March 31 2009. In FY’08, the company had clocked a net profit of Rs 45.2 million.

    Revenue rose 18 per cent to Rs 7.65 billion (against Rs 6.47 billion in FY’08). Expenditure, however, shot up from Rs 5.68 billion in FY’08 to Rs 10.32 billion in FY’09.

    Network18 has raised over Rs 7.75 billion in equity related instruments to strengthen balance sheets across its group companies.

  • Fitch downgrades TV18

    Fitch downgrades TV18

    MUMBAI: Credit ratings agency Fitch has downgraded TV18, raising concerns over the company’s financial profile over the nine-month period of the current fiscal and deployment of large cash balances to support subsidiaries and group companies.

    TV18’s operating loss in FY’09 on a consolidated basis has been primarily due to the significant launch expenses and development costs of Web 18, and to some extent due to expenses related to its print media businesses including one time charges.

    Also disturbing is the pressure on profitability on TV18’s core news operations business due to a significant slowdown in the renewal of advertising contracts.

    “The company has utilised a substantial portion of its liquid balances (around Rs 6.76 billion as of FY’08 and Rs 2.6 billion as of 9-month period of FY’09) in investments in group companies, primarily in Infomedia18 and direct investments into other group companies,” Fitch said.

    Fitch has downgraded the rating to ‘BBB’ from ‘A.’ It has also lowered its rating outlook to negative from stable.

    Fitch ratings on the following instruments
    Rs 1.25 billion long-term loan – Downgraded to BBB (from A)
    Rs 670.1 million term-loan – Downgraded to BBB (from A)

    Rs 850 million fund-based working capital limits – Downgraded to BBB/F2 (from A/F1)

    Rs 70 million non fund-based working capital limits – Downgraded to F2 (from F1)

    Rs 250 million commercial paper/short-term debt programme – Downgraded to F2 (from F1)

    TV18 has raised fresh debt to meet the increased requirement of working capital and support its investments. “Net debt levels increased substantially to Rs 6.6 billion at the 9-month period of FY’09 compared to negative net debt levels at FY’08,” Fitch said.

    On the positive note, however, is the possible gain of advertising revenues from the upcoming elections and the budget coverage after the new government is formed.

    “TV18 has also been actively undertaking cost cutting measures across its businesses, which along with the one-time nature of some of Web18’s losses due to initial launch expenses and charging off development costs, could help stem operating losses. In addition, TV18 has put on hold its earlier investment/expansion plans into new businesses such as print media, which could reduce the extent of negative free cash flows to be funded through FY’10,” Fitch said.

    “Realisation of benefits from the company’s ongoing operational initiatives, coupled with a revival in advertising revenues materially benefiting credit metrics could lead to the outlook being revised back to stable, as could material reductions in net debt levels through equity infusions and/or monetisation of equity stakes in subsidiaries/group companies,” the ratings agency added.

  • NDTV net loss Rs 21.2 million in Q1

    MUMBAI: NDTV posted a net loss of Rs 21.2 million for the quarter ended 30 June 2007, as compared to a loss of Rs 105.4 million during the corresponding quarter last fiscal.

    On a consolidated basis, the net loss stood at Rs 149.2 million for the first quarter of FY08, compared with a consolidated net loss of Rs 82.4 million during the corresponding period last year.

    During the period, the company’s consolidated total income was at Rs 736.9 million. Consolidated costs include expenditure on roll out of new businesses including entertainment and lifestyle channels.

    A statement by the channel said its first Lifestyle channel was due to be launched in the next few weeks, and NDTV Convergence had developed new high revenue initiatives. With the receipt of $120 million dollars in funding, NDTV Networks had achieved funding for present business plans.

    It also claimed that while costs are stabilized, NDTV is the only news channel not to become tabloid and to retain credibility and highest standards and advertisers were responding positively to this exclusive positioning by NDTV. NDTV Profit continued to enjoy the highest viewership among business channels, the statement said.