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Tag: NDTV Lifestyle

  • NDTV narrows Q4 standalone net loss to Rs 158.7 mn

    NDTV narrows Q4 standalone net loss to Rs 158.7 mn

    MUMBAI: News broadcaster NDTV Ltd has narrowed its standalone fiscal final quarter net loss to Rs 158.7 million, from Rs 231.7 million a year ago.

    The company has managed to reduce the net loss on the back of “sustainable cost rationalisation”, even if its income from operations saw a 10.59 per cent dip.

    Income from operations for the quarter under review stood at Rs 967.2 million, as against Rs 1.08 billion a year ago.

    NDTV also posted standalone loss from operations (before other income, interest & exceptional items) of Rs 16.9 million, against a profit of Rs 83.5 million in the earlier year.

    Expenses from news operations stood at Rs 997.6 million, compared to Rs 1.03 billion in the corresponding quarter of the previous fiscal.

    For the full fiscal, NDTV’s standalone net loss came down to Rs 191.5 million, from a net loss of Rs 986.3 million in the earlier year. Income from operations went up by almost 5 per cent to Rs 3.63 billion, from Rs 3.46 billion.

    NDTV’s FY’2011-12 loss from operations (before other income, interest & exceptional items) came down to Rs 200 million, compared to a loss of Rs 426.4 million a year ago.

    Though expenses remained flat at Rs 3.98 billion (from Rs 3.97 billion), NDTV said that the company has undertaken a group-wide exercise to improve efficiencies and cut wasteful expenses, while “ensuring that content and production values are not compromised”.

    “As a result, there has been a significant 16 per cent reduction in operating and administration expenses over the last financial year,” it said.

    On a consolidated basis, NDTV posted a net loss of Rs 413.3 million for the quarter ended 31 March 2012, as against a net loss of Rs 608 million a year ago.

    Income from operations on a consolidated basis grew marginally to Rs 1.35 billion (from Rs 1.32 billion), while total expenses stood at Rs 1.42 billion, compared to Rs 1.48 billion.

    For the fiscal ended 31 March 2011, NDTV posted a consolidated net loss of Rs 873.8 million, as against a net loss of Rs 1.74 billion in the earlier year. Income from operations stood at Rs 4.74 billion, up from Rs 4.23 billion a year ago, while expenses rose marginally to Rs 5.31 billion, from Rs 5.27 billion.

    NDTV also said that its new businesses are giving rise to new revenue streams. It said that NDTV Good Times continued its reign as the numero uno lifestyle channel in India. NDTV Lifestyle, which operates the channel NDTV Good Times, witnessed a “significant rise in revenues, reporting around 38 per cent growth over the last fiscal year”.

    Meanwhile, NDTV Convergence, which operates the Internet and mobile business of the group, recorded a five-fold jump in PAT for the year ended 31 March 2012. Revenues rose by 60 per cent over the last fiscal year.

    NDTV WorldWide has turned profitable. “PAT for NDTV WorldWide, the media consultancy business of the group, doubled during the year ended 31 March 2012. Revenues tripled over the last fiscal year,” NDTV said.

    In the one-time write-off, the company said, “The major exceptional items relate to closure of operations of Turner General Entertainment, which operated the General Entertainment Channel, ‘Imagine’ (earlier, known as ‘NDTV Imagine’ prior to sale of stake to the Time Warner group), in which NDTV had retained a minor stake. Further, an investment in a listed entity, whose market value has reduced significantly, has also been provided for.”

  • ‘NDTV is a debt-free company and we are sitting on a cash pile of $70 million’ : NDTV Group CEO KVL Narayan Rao

    ‘NDTV is a debt-free company and we are sitting on a cash pile of $70 million’ : NDTV Group CEO KVL Narayan Rao

    Two years back, Dr Prannoy Roy-promoted NDTV Ltd crafted a growth path in the entertainment business. Riding a bull run, the news broadcasting company launched NDTV Networks Plc to house subsidiary arms NDTV Imagine Ltd and NDTV Lifestyle.

     

    NBC Universal invested a whopping $150 million for an indirect 26 per cent in NDTV Networks at a time when valuations were running high. Besides, NDTV raised $100 million in step-up coupon bonds.

     

    The global downturn led to the exit of NBCU, freeing NDTV to scout for investors for its non-news verticals. US-based Scripps Networks snapped up 69 per cent stake in NDTV Lifestyle while Turner International agreed to take 92 per cent of NDTV Imagine.

     

    So where does this leave NDTV? Are its growth wings clipped?

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, NDTV Group CEO KVL Narayan Rao says at the end of a whole chain of transactions NDTV is left with a cash pile of $70 million to focus on its news business while retaining portions of the non-news business.

     

    Excerpts:
     

     
    What prompted you to get out of the entertainment business?
    We wanted to focus on what we are best at: running news operations. We are a credible news organisation and there is enough scope to grow that. Besides, we will still retain 5 per cent stake (3 per cent post issue of primary shares to Turner) in NDTV Imagine. As for the Hindi GEC space, it was clear that a strong international strategic partner would bring in funding and global expertise. We are delighted that we have this deal with Turner.
     

     
    Did the global downturn and the exit of NBC Universal spur the chain of events?
    No. We bought out NBCU‘s stake. As a result, we got the opportunity to find a good investor who would run the company.
     

     
    NBCU had invested $150 million for the 26 per cent stake. Did you pay $25 million to buy back their stake?
    The deal is confidential. I can‘t comment on that.

     
     
    Was the deal with Turner dependent on repurchasing the bond holders who would have held 20 per cent in NDTV Networks?
    We had set out to do a few things. Buying back the bond holders was part of that process. We paid $72.4 million for that. This allowed us to pursue investors for our different verticals.
     
     

    But wouldn‘t the payout have been $115 mn (along with interest payments)?
    There was a negotiation that took place. We bought out the bonds and that allowed our subsidiaries the flexibility for restructuring and financing the businesses including being able to access bank finances for working capital and other requirements.
     
     

    ‘We wanted to focus on what we are best at: running news operations. We are a credible news organisation and there is enough scope to grow that‘

     
     
    Did you decide to retain a higher stake in NDTV Lifestyle because it would involve less funding while NDTV Imagine would guzzle in more money?
    We entered into an agreement with the US-based Scripps Networks which has experience in creating lifestyle brands. They took a 69 per cent stake and the transaction value was $55 million.
     

     
    Will NDTV get $30 million while the balance go as investments into NDTV Lifestyle?
    I can‘t comment on the specifics.
     
     

    Two years back, NDTV decided to expand because of a bull run. The market tanked and the scenario changed dramatically. Was it a mistake to expand into the non-news business?
    We have completed a chain of transactions. But at the end of it, NDTV is a debt-free company and we are sitting on a cash of $70 million. Perhaps, we are the only TV news organisation that would be sitting on such a large cash pile. We will still have some non-news businesses running. We also have NDTV Convergence. We have a decent future to look forward to.
     
     

    NDTV had posted a standalone net loss of Rs 731.8 million on a turnover of Rs 3.09 billion for the fiscal ended 31 March 2009. How do you plan to turnaround in the news business?
    For FY‘09, we had a one-time cost of around Rs 400 million. We have taken substantial cost-saving measures this year.
     

     
    Do you have major plans to invest in NDTV Convergence?
    It is one of our important properties. A lot, though, will depend on getting the right revenue model.
     
     

    NDTV has shut down MetroNation Delhi. Do you have any revival plans?
    It is too early to comment on this.
  • News TV stocks weighed down by ad slowdown

    News TV stocks weighed down by ad slowdown

    MUMBAI: Shares of news broadcasters have taken a battering as they struggle to up their second-quarter revenues over the previous year amidst stiff competition and slowdown in the economy. 

    NDTV has failed to buck the trend despite the buzz in the market that Time Warner is in advanced negotiations to pick up a majority in its non-news business after the exit of NBC Universal. The stock has fallen from its closing price of Rs 140.70 on the BSE (28 October, the day it announced the results) to Rs 125.85 on Tuesday.

    NDTV’s news business has seen a six per cent revenue drop from the year-ago period while net loss was at Rs 118.5 million. Operational cost-efficiency measures have narrowed the net loss from the prior-year period, but analysts are concerned about the revenue uptick in the subsequent quarters.

    “The net cash position is close to zero, competition is intensifying at the news operations level, and the company is kicking in losses in non-news divisions as NDTV is still incubating these businesses,” a media analyst said. 

    A stake sale in NDTV Networks will, however, boost the scrip. NDTV Networks is the holding company for NDTV Imagine, NDTV Lifestyle, NDTV Convergence, Labs and NGEN Media Services (NDTV holds 50 per cent in this).

    TV18, which runs business news channels CNBC TV18 and CNBC Awaaz, has had a bad run in the stock market after announcing its financial performance. The stock slid from Rs 90.10 on the result day to Rs 70.55 on Tuesday as TV18 posted a second-quarter net loss of Rs 246.95 million with revenue from news operations dropping 20 per cent over the previous year.

    IBN18 had a similar fate on the bourses, falling from the closing price of Rs 99.60 on the second-quarter results day to Rs 78.35. The company that runs news channels CNN IBN and IBN7 had a standalone net loss of Rs 598.7 million (from Rs 175.76 million) and a 12 per cent revenue fall from the previous year.

    Source : BSE India

    TV Today’s shares plunged from 93.55 to Rs 76.95 despite the fiscal second quarter net profit jumping 40 per cent. Income from operations, however, fell marginally by 3.51 per cent to Rs 645.45 million.

    The only scrip in this genre that climbed was Zee News Ltd (ZNL) as it rose from Rs 44.30 to Rs 51.25. But this was mainly due to the announcement that ZNL shareholders would be given shares of Zee Entertainment Enterprises Ltd (Zeel) as six regional general entertainment channels move out from the company.

    “The weakness of advertising revenues seems to be weighing down the scrip prices of news channels. But rebound is bound to happen and we will see an upward curve gather momentum,” said the head of a broking firm.

  • NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    MUMBAI: News major NDTV Ltd, while declaring an 85 per cent rise in net profits for the quarter, anounced that it has floated a subsidiary – NDTV Networks BV in Netherlands.

    This new company will wholly own NDTV Networks Plc and its underlying subsidiaries – NDTV Imagine, NDTV Lifestyle, NDTV Convergence and NDTV Labs and 50 per cent in NGEN Media Services. All these subsidiaries are currently wholly owned by their respective parents and would engage in implementing the new business initiatives to be undertaken by NDTV, the company said in a release.

    Indiantelevision.com had first reported that NDTV Group had floated Networks Plc, UK, which would play a big role in bringing in investments for the entertainment and other non news channels. The company had applied for Foreign Investment Promotion Board (FIPB). Reportedly, the approval is for pumping in $130-160 million in the form of foreign direct investment (FDI).

    Hindu Business Line has reported that the subsidiary would raise funds in the overseas market, particularly through listing on the Alternative Investment Market (AIM) segment of the London Stock Exchange. While $106 million would be invested into NDTV Imagine (a non-news Hindi mass entertainment channel), FDI to the tune of $25.23 million would be pumped into NDTV Lifestyle which would be engaged in the business of content production for TV channels dedicated to travel, food, fashion, shopping and health and wellness in India and abroad.

    NDTV Q3 net profit up 85 per cent at Rs 48.8 million

    Meanwhile, NDTV has reported 85 per cent rise in net profit to Rs 48.8 million in the third quarter ended 31 December 2006 against Rs 26.4 million in the year-ago period.

    Total income rose 15.21 per cent to Rs 793.8 million from Rs 689 million during the same period. The company’s operating profit margin dropped from 22.24 per cent to 17.77 per cent year on year.

    Profits and revenues rose despite huge incubation costs, the company said in a release.

    “NDTV’s Indonesian JV (Astro Awani) made profits this quarter within just six months of its launch. The channel is on track to launch its Malaysian channel shortly. The company has also launched operations in Australia and New Zealand,” the statement added.

  • ‘A very good year for TV news business, with a huge upside for the industry’

    ‘A very good year for TV news business, with a huge upside for the industry’

    The year 2007 has been very, very good so far as business is concerned. We had all approached the year with certain things that we needed to do, and my organisation had decided to move to areas that go beyond news. So we went on a funding road show in March-April this year, collected the money we needed to for funding the verticals we wanted to develop and we have done so, getting into various aspects of media activity.

    In fact, if you look at NDTV Network story, in a sense this was the real media story of the country this year, with the six verticals that I run now, consequent to raising of the funding. One is NDTV Imagine, the GEC from our company, which we expect to launch from end-January 2008. And entertainment has endless possibilities, music, films, and so many other aspects.

    Then we have launched NDTV Lifestyle this year. This is our response to the economic changes and the increase in the size of the middle class and their spending habits, which are fast changing.

    Under the NDTV Networks umbrella we now have news, entertainment, lifestyle, technology solutions, setting up new projects
    _____****_____

    Today, you can walk into a mall in Saket (in the southern parts of New Delhi) and you can find Armani and other foreign and expensive brands. This was not the case even a year earlier. And there are people going to these places and buying these things. So we had targeted this niche audience, which believes in wellness and fitness and good living, health and happiness and so forth.

    The other business is NDTV Convergence, which is a leading Web 2.0 company with interests in developing exclusive content for cross media platforms such as the Internet, mobile phones and IPTV.

    We operate India’s no 1 television news website www.ndtv.com along with other leading verticals, namely, NDTV Profit, NDTV Jobs, NDTV Travels, NDTV Gadgets, NDTV Shopping and NDTV Commodities. Convergence is really a hot property, and we have developed a very good management team, which is by the way true for all our verticals.

    There is also another emerging trend, which is an MPO, a media processes outsourcing company. There are so many media companies that need to go digital, or have meta-tagging, or run specialised closed-captions, catering to audio-challenged and visually challenged persons. These companies need various solutions, so we have developed that vertical in a JV with Genpact and called the company N-gEN.

    We said that the industry will bring its own code, and fortunately, the government accepted that
    _____****_____

    We already had NDTV Labs, which deals with broadcast technology for ourselves, both software and hardware. We have been getting awards for these activities from Commonwealth Broadcasting Association and other agencies. We have people with 18 years of expertise in that field and so we decided that apart from producing these solutions for NDTV, this can become an independent business.

    Then there is NDTV Emerging Markets which will set up new projects, like we have done in Indonesia, Malaysia and the Middle East.

    So under the NDTV Networks umbrella we now have news, entertainment, lifestyle, technology solutions, setting up new projects. For me these are highly satisfactory developments. Broadly speaking, we have done everything that could be done in the realm of media, and I think many of us (other companies as well) have done likewise, which makes 2007 a very good business year.

    But yes, there have been a few contentious issues as well, like regulation, of which there are two broad aspects: the news content code and the Broadcast Regulation Bill.

    So far as the content code is concerned, let me try to be as objective as is possible. The government set up a committee to look at all components of the content code, and the committee including educationists, activists, watchdog kind of people, the media itself, the government officials and so on.

    But the when the code came out, it was simply not acceptable to us. For one thing, the committee had had just a single representative from the media, from the Indian Broadcasting Foundation. One must understand that the code was meant to regulate the news industry and it made no sense having just one person representing it. We were completely dominated by the ministerial majority. So we rejected it outright, because any code brought about by the government was not acceptable to us. We said that the industry will bring its own code, and fortunately, the government accepted that.