Television

Fitch downgrades TV18

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2017/01/18/tv18_1.jpg?itok=uKJiIhz5

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.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/Times-Now-800x800.jpg?itok=Ckdthpen
Times Now will be globally 'regional', HD by next quarter

MUMBAI: Success does not end at leadership, it begins! With an aim to create value and make a difference, he is a man on a mission. He quit News X in November 2016 to fill the the big shoes of Arnab Goswami. Known to be an insightful, incisive journalist, Rahul Shivshankar joined Times Now on 15...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/sa%20%281%29.jpg?itok=eot4hbiq
Holi, elections rake in ratings for channels in week 11 of 2017

BENGALURU: Programmes during the Indian festival of colours and assembly elections results counting in five states of the country were television eyeball grabbers for a number of channels as per data released by Broadcast Audience Research Council of India (BARC) for week 11 of 2017 (Saturday, 11...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/hardtaik%20%281%29.jpg?itok=iXIdRhYu
BBC HARDtalking anniversary interview with Sir Ian McKellen

BBC World News’ legendary interview show HARDtalk will be marking 20 years of asking the questions that matter with a raft of dedicated content.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/punit-goenka%20%281%29.jpg?itok=9SbmVluE
Zee Entertainment certified 'Great Place to Work'

Leading Indian content company, Zee Entertainment Enterprises Limited (ZEEL), today announced that it has achieved the certification as a Great Place to Work® by the Great Place to Work® Institute, India. The Great Place to Work framework assesses an organization on employee perception through...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/GRB.jpg?itok=_RkATcem
GRB brings crime, paranormal programmes to Eastern Europe

MUMBAI: GRB Entertainment has sold a slate of unscripted programmes in Eastern Europe spanning genres including real-life crime, natural disaster and paranormal. Hungary’s Origo Media Group picked up 3 seasons and specials of the long-running, real-life hospital drama series, Untold Stories of the...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/inside.jpg?itok=DX3AXtIB
Sony Pictures Network builds team for kids channel, appoints two execs

MUMBAI: Celebration at Sony Pictures Network India (SPNI) seems to be continuing. The network recently launched its factual entertainment channel Sony BBC Earth with BBC Earth. Now, the network is gearing up to launch another channel, Sony kids channel. The channel is slated for an April launch....

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/Oscar.jpg?itok=wY1KKlcJ
Oscar-winning 'Danish Girl' unsuitable for TV despite theatrical release, Sony expresses regret

NEW DELHI / MUMBAI: The Oscar-winning Hollywood film The Danish Girl, which had been released in theatres in the country in January 2016 with an ‘Adults only’ certificate and no cut, has been denied its television premiere in India on Sony Le PLEX HD channel. A Central Bureau of Film Certification...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/BARC_1%20%281%29.jpg?itok=4rZPuncb
Star Plus & Sony Pal continue to dominate GEC market

In week 11 of Broadcast Audience Research Council (BARC) India data, Star Plus continued to led both the market Urban and (U+R). Sony Pal maintained its leadership position.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/25/SWAMI.jpg?itok=RVOfsNYz
Depute law officer to probe NDTV tax case, Swamy urges FM

Rajya Sabha MP Subramanian Swamy has recommended through his Twitter handle that the finance ministry should field a Law Officer with the integrity to challenge NDTV's income tax case of Rs.525 cr failing which it would have to face protest by him (Swamy.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories