| MUMBAI:
It will probably be one of the few Indian internet ventures to make it to the
American stockmarket when it goes for its American depositary receipts issue.
The company being referred to is Web18, which is part of one of India's leading
media groups, Network18. The
announcement was made through Network 18 Media & Investments and its subsidiary
Television Eighteen India. The two stated that their subsidiary entity Web 18
Holdings, has submitted on a confidential basis to the US Securities and Exchange
Commission (SEC) a draft registration statement for a proposed initial public
offering of American depositary shares, or ADS', representing ordinary shares
of Web 18. The
initial public offering is expected to commence as soon as market conditions permit,
and is subject to Web 18's filing publicly with the US SEC a registration statement
and completing the US registration process. The number and dollar amount of ADS
proposed to be offered and sold have not yet been determined.
Meanwhile
Television 18 Ltd announced its Q3 2008 results on 29 January.
While revenues are up as compared to the previous corresponding
quarter, profitability has taken a hit. Revenues are up to
Rs 1.3 billion (Rs 1.13 billion in Q3 2007). With expenses
going up from Rs 753.73 million to Rs 1.38 billion the company's
operating profit has got dipped in red ink to the tune of
Rs 73.63 million (Rs 371.95 million profit in Q3 2007).
The
management attributes this drop to a weak operating performance by business news
channels in an exceptionally tough quarter. It adds however that the the channels
dominate the business news genre with a two third marketshare and that going forward
the focus is going to be on cost controls and efficiency. It expects Q4 2008 to
continue to be weak as the full presentation of the Union budget to take place
after the general elections in April. "The
group's business news channels rake in the moolah during the budget coverage,"
says an observer. "This year's elections and the delayed budget presentation
will mean that the revenues will not accrue to its financials in Q4." Its
interest costs, however, have gone up in the quarter to Rs 354.77 million (Rs
144.84 million). The company says the interest component went up because of one
time upfront charges paid to various lenders amounting to Rs 90.5 million. Needless
to say, its net profit has taken a beating with losses of Rs 306.03 million being
chalked up (Rs 126.50 million profit). Things could have been worse had not profits
of Rs 270 million from some share sales by a trust (to which the promoter's shares
had been transferred) been transferred to Television 18's books. The
scenario is the same with its subsidiaries: Infomedia18 and NewsWire18 of which
have taken a hit on profitability while revenues have climbed. However, reveneus
and profitability have dropped in the case of its subsidiaries Web18 and its News
operations. The
management said that Infomedia has taken a one time restructuring charge of Rs
72.5 million which has resulted in the company's profitability shrinking. It added
that the sestructuring is slated to bring down operating costs by over Rs 200
million in the next two quarters, and that it had partnered with Alibaba for a
local B2B search business venture. For
further details on the company's and its subsidiaries' performance download the
press release by clicking
here. | 
