ITV

Tag: TV18

  • TV18 to cut 12% jobs, merge broadcast operations

    TV18 to cut 12% jobs, merge broadcast operations

    MUMBAI: TV18 will cut 12 per cent of its permanent staff and merge the broadcast operations of its two business news channels, a clear sign that news channels need to take corrective measures amid slowdown in advertising revenues.

    The company will also use Rs 3 billion out of its proposed Rs 5.1 billion rights issue to retire part of its debt.

    The twin steps will result in a cost saving of Rs 650 million annually.

    “Around 205 jobs are gone, but senior editorial staff have been retained,” a source said.

    TV18 will merge the logistics, back-end and broadcast operations of the two channels – CNBC TV18 and CNBC Awaaz – coinciding with the completion of 10 years of CNBC TV18 and five years of CNBC Awaaz as stand-alone operations.

    Network18 Group CEO Haresh Chawla said, “It is our belief that the next stage of growth and profitability of our business news operations will come from a more synergistic entity that combines the strength of two powerful and complementary brands. TV18 has already embarked on a path to financial restructuring as mentioned in the rights issue offer. Both these moves put together will make TV18 more robust in operating as well as financial terms.”

    The company explained that the channels will continue to maintain their distinct identities. Only some of the over-lapping and common operations at the back-end are being merged. The company expects to optimise approximately 20 per cent in annual operating costs via this restructuring.

    TV18 said that these moves will help the company return to better operating margins and profitability. The company will take a one-time extraordinary restructuring charge in the current quarter, and the synergies are likely to result in savings from the next quarter.

    Shares of TV18 closed Friday at Rs 78.75, up 2.54 per cent.

  • TV18 posts Q2 losses, signals early recovery

    TV18 posts Q2 losses, signals early recovery

    MUMBAI: Television18, the company which operates leading business news channels CNBC TV18 and CNBC Awaaz, has suffered losses for the second consecutive quarter.

    On a standalone basis, TV18 has posted a net loss (after tax and minority interest, before ESOP charge out) of Rs 246.95 million for the quarter ended 30 September, as compared to a net profit of Rs 103.49 million a year ago.

    Amid slowdown, revenue from news operations fell 20 per cent to Rs 647.50 million, as against Rs 808.23 in the same quarter of FY’09.

    However, on the sequential basis, the company’s revenue has increased 14 per cent as compared to Rs 568.57 million in Q1.

    Operating expenses went up by 12.07 per cent to Rs 547.11 million in the quarter under review on Y-o-Y basis.

    TV18 is expecting revenues to grow YoY from next quarter onwards, ending four quarters of de-growth.

    Meanwhile, the operating margin of the company decreased to 15.50 per cent in the quarter under review, compared to 39.60 per cent in the prior-year period.

    On a consolidated basis, TV18, which also includes financials of Web18, Infomedia18 and Newswire18, has posted a net loss of Rs 563.74 million. For the same quarter of the previous year, net loss stood at Rs 402.19 million.

    Total revenue from consolidated operations jumped 12.19 per cent to Rs 1.2 billion, as compared to Rs 1.07 billion a year ago. Expenses stood at Rs 1.25 billion, up 20.72 per cent.

    The company announced that all its business units have reported sequential growth in revenues and all are set to turn Ebitda positive on consolidated basis. Also successful completion of rights issue will “substantially de-leverage the balance sheet.”

    “A successful completion of our rights issue will give the necessary dose of equity to the balance sheet, deleveraging it from the current debt levels,” TV18 MD Raghav Bahl said in a statement.

    Web18, the subsidiary that houses all the websites of the group, has curtailed its net loss to Rs 100.33 million, as compared to Rs 238.04 million a year ago. Revenue from the operations grew marginally by 4.85 per cent to Rs 160.08 million, while expenses dropped 38.26 per cent to Rs 211.45 million in the quarter.

    In Infomedia18, however, the net loss has increased to Rs 37.90 million, from Rs 1.11 million in the corresponding quarter of FY ’09. Revenue has increased to Rs 353.72 million, from Rs 290.48 million, while expenses climbed to Rs 415.10 million, from Rs 299.62 million a year ago.

    In Newswire18, revenue has grown 54 per cent and the company has turned Ebitda positive. Though it has posted a net loss of Rs 13.28 million, as against Rs 39.93 million, revenue rose to Rs 78.88 million (from Rs 51.20 million), while expenses were at Rs 76.87 million.

    Bahl added, “We are happy to share that all our businesses have started showing revenue growth on a QoQ basis and we have reasons to believe that we shall soon be witnessing YoY growth as well. While the business news channels continue to have a positive Ebitda, Newswire18 has turned Ebitda positive as well. We are confident that the operating margins of other businesses, especially Web18 and Infomedia18, will start recovering from the next quarter.”

  • TV18 fixes rights issue price at Rs 84 per share; issue to open on 29 September

    TV18 fixes rights issue price at Rs 84 per share; issue to open on 29 September

    MUMBAI: Television 18 Ltd (TV18) has fixed the pricing of its rights issue at Rs 84 per share, hoping to mop up Rs 5.1 billion to primarily repay debt.

    Every equity shareholder of two equity shares (of Rs 5 face value) is entitled to one share, the company said Wednesday.

    The issue will open on 29 September and close on 13 October. The last date for request for split application forms will be 5 October.

    As reported earlier, TV18 plans to raise close to Rs 5.1 billion through a rights issue. While Rs 3 billion will be used to retire debt, the company plans to use Rs 300 million from the proceeds of the issue towards commercialising the venture with Forbes Media. It will use Rs 450 million from the net proceeds to subscribe to the proposed rights issue of Infomedia.
    TV18 houses the business news channels CNBC TV18 and CNBC Awaaz and financial and news terminal Newswire18. The scrip closed at Rs 109.8 on Wednesday, down 3.17 per cent from its previous close.

  • 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.”

  • TV18 stalls plans of Gujarati and south language biz news channels

    TV18 stalls plans of Gujarati and south language biz news channels

    MUMBAI: TV18 has stalled its plans to launch three regional business news channels and will wait till the economic downturn reverses before it revives its growth plans in this space, a source tells Indiantelevision.com.

    TV18 is looking at launching a Gujarati and a south-language business news channel. The plan is also on to launch another regional business news channel, the language of which is kept under wraps.

    “We will launch these channels only when the market improves,” says the source.

    CNBC TV18 South will be a single channel that will beam out business news in all the four southern languages – Tamil, Telugu, Kannada and Malayalam.

    TV18 believes that there is potential to grow its business by making strategic investments, both through organic and inorganic routes, in regional and local language news channels.

    TV18 is planning to raise Rs 5.1 billion through rights issue, out of which Rs 3 billion will be utilised towards repaying debt and Rs 300 million on the Forbes project. The company will also invest Rs 450 million for subscribing to the rights issue of Infomedia.

  • TV18 earmarks Rs 3 bn for debt repayment and Rs 300 mn in Forbes project

    TV18 earmarks Rs 3 bn for debt repayment and Rs 300 mn in Forbes project

    MUMBAI: Television 18 India Ltd (TV18) will be utilising Rs 3 billion out of the proposed Rs 5.1 billion rights issue for repayment of debt, while Rs 300 million will be towards commercialising the ventures with Forbes Media.
    TV18, which houses the business news channels CNBC TV18 and CNBC Awaaz and financial and news terminal Newswire18, will also use Rs 450 million from the net proceeds to subscribe to the proposed rights issue of Infomedia. Having filed with Sebi, Infomedia aims to raise Rs 1 billion from the rights issue. TV18 has directly acquired a 3.63 per cent equity in Infomedia and its subsidiary I-Ven holds 62.05 stake of the paid-up equity capital of Infomedia. TV18 proposes to consolidate its interest and hold a direct stake of 43.38 per cent in Infomedia.

    The company plans to put in Rs 350 million towards acquisitions and other strategic initiatives in the media and allied sector. TV18‘s growth plan involves expanding its product and service offerings, both organically and through strategic acquisitions.

    A further Rs 750 million will be used towards general corporate purposes to drive its business growth. Since Rs 250 million has been earmarked towards the issue expenses, TV18 will be left with net proceeds of Rs 4.85 billion from its rights issue.

    For the English business magazine project, group company digital18 Media Private Ltd has entered into a license agreement with Forbes Media LLC (dated 24 October 2008). Additionally, the company is seeking to enter into a separate 50:50 joint venture agreement with Forbes to operate an India specific business website using the Forbes brand name and content. The investments may include subscribing to share capital in entities operating the Forbes related business ventures, including digital18, capital expenditures, if any, and payment of royalties to Forbes.

    TV18 will not use proceeds from the rights issue for meeting its working capital requirements.

  • 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.

  • TV18 gets FIPB nod, to invest Rs 600 million in 3 regional biz channels

    TV18 gets FIPB nod, to invest Rs 600 million in 3 regional biz channels

    MUMBAI: Raghav Bahl-promoted TV18 is launching three regional business news channels – CNBC TV18 South, CNBC TV18 Gujarati and CNBC TV18 Channel 3.

    TV18 plans to invest Rs 600 million towards these three channels, a senior executive in the company said. TV18 South will be a business channel in the southern languages while the regional language of Channel 3 is not yet firmed up.

    TV18 has received Foreign Investment Promotion Board (FIPB) clearance, but has yet to decide whether to defer the launch because of the economic downturn, the executive added.

    Vijay Television, part of the Star Group, has received FIPB permission to make downstream investment in a company engaged in uplinking a non news current affairs TV channel. Star recently announced a joint venture deal with Jupiter Entertainment Ventures to take majority stake in Asianet. As part of this deal, Vijay TV will come under Star Jupiter, the JV company which will hold stake in Asianet.

    Star India has got the permission to to undertake uplinking and downlinking of channels and transfer of shares to non resident shareholders. There is no fresh inflow of cash.

    However, proposals of Lokmat Newspapers, Mumbai and Dow Jones & Company, USA have been deferred. Lokmat had proposed to induct FDI in a company engaged in print media.

    Besides it had sought permission to convert operating company into an operating cum holding company to make further downstream investment and allotment of additional shares pursuant to the scheme of demerger of the publication business.

  • 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.

  • TV18, Jagran put regional biz newspaper project on hold

    TV18, Jagran put regional biz newspaper project on hold

    MUMBAI: The economic slowdown could well be hitting media companies that have chalked out massive expansion plans. The regional language business newspaper that was to roll out from the 50:50 joint venture between broadcaster TV18 and Jagran Prakashan Ltd. has been put on hold.

    TV18 said on Monday its joint venture, Jagran18 publications Ltd, is deferring the launch of the newspaper.

    In a separate statement, Jagran Prakashan said the project was deferred due to the “prevailing market conditions.”

    Jagran18 board reviewed the project and decided it to be “prudent to defer it.”

    Last year, the JV had announced plans of launching a Hindi business daily in 2008 along with other Indian language dailies focused on financial and economic news.

    Network18 MD Raghav Bahl had mentioned earlier that “business audiences have grown immensely in the Hindi heartland and regional markets” and they will be “combining TV18’s strengths in business content with Jagran’s understanding of print markets.”