TV18: FY10 tots up losses, but Q4FY10 shows turnaround signs

  MUMBAI: Is the Raghav Bahl-promoted Television Eighteen India (TV18) on a recovery trail? If one goes by the results over Q3 and Q4 FY10, things seemed to be looking up at the company which runs the news channels -CNBC TV18 and CNBC Awaaz. Revenues have gone up, operational costs seem to be being kept under control and a positive bottomline has been reported.

Revenues in Q4 were up to Rs 840.6 million (Rs 674 million in Q3 FY10) and operating profit too has gone up to Rs Rs 254.3 million (Rs 204.4 million). However, the company would have only made a marginal net profit had it not booked its entire ‘other income‘ of Rs 217.4 million in Q4 FY10. For the record the company generated a net profit after deferred tax of Rs 238.7 million.

On an annual basis, the company has seen a rise in its net loss on a standalone basis for the year ended 31 March 2010. The net loss was at Rs 597.3 million, as compared to Rs 528.9 million in the previous fiscal. Revenues too have almost stayed stagnant at Rs 2.73 billion in the whole of FY10 (Rs 2.80 billion in FY09). Observers are questioning if the company has hit a ceiling as far as revenue potential is concerned in the financial and business TV news channel segment.

The firm‘s operating profit for FY10 was Rs 648.1 million which is a turnaround from the loss of Rs 48.4 million it incurred last fiscal.   
  The comapny‘s other income also dropped by 68.81 per cent, from Rs 697 million (FY09) to Rs 217.4 million (FY10). The firm also lost out in terms of income earned from investments, which saw a fall of 45.29 per cent from Rs 392.6 million (FY09) to Rs 214.8 million (FY10). However, on a quarterly basis the income from investments went up to Rs 75.5 million in Q4FY10 from a loss of Rs 210.6 million in the corresponding quarter last fiscal.

The company net loss increased further in FY10 even though they did better at the PAT level, due to a deferred tax outgo wherein the company had to spend Rs 50.4 million this fiscal as compared to a savings of Rs 159.5 million it made last fiscal.

On a consolidated basis, TV18 reduced its net loss for the fiscal by 29.55 per cent to Rs 1.17 billion from Rs1.66 billion in FY09. The revenue for the firm went up from Rs 4.85 billion (FY09) to Rs 5.53 billion (FY10). This coupled with reduced operating expenses led the firm to post an operating profit of Rs 403.1 million this fiscal, a major improvement from the operating loss of Rs 813.1 million it posted last fiscal.

The consolidated result also includes financials of Web18, Newswire18 and Infomedia18.

A look at these segments individually:

Web18, which houses the web properties of the group including, reduced its net loss by 51.99 per cent for the fiscal at Rs 266.9 million from last fiscal‘s Rs 555.9 million. The revenues generated from operations increased by 11.28 per cent to Rs 728.2 million (FY10) from Rs 654.4 million (FY09). The operating loss of the firm also reduced by 74.1 per cent from Rs 357.5 million (FY09) to Rs 92.7 million (FY10).

However, in Q4FY10 the firm registered a net profit of Rs 37.4 million, on account of its minority interest income of Rs 71.8 million and revenues were at Rs 229.1 million.

Newswire18 also reduced its losses in FY10, bringing it to Rs 40.8 million from last fiscal‘s Rs 129.8 million. The firm‘s revenues went up by 42.5 per cent to Rs 329.6 million (FY10) from Rs 231.3 million (FY09). At an operational level the company showed a profit of Rs 18.4 million as compared to last fiscal‘s loss of Rs 76.8 million. This turnaround was aided by Newswire 18‘s increased revenues especially in Q4FY10 when it earned Rs 92.5 million

Infomedia 18:
Infomedia 18 too reduced its losses this fiscal bringing these down from Rs 448.9 million in FY09 to Rs 35 million in the year ended 31 March, 2010. The firm‘s revenues went up to Rs 1.74 billion in FY10 from Rs 1.17 billion in FY09. This helped them reduce their operating losses by 48.27 per cent to Rs 170.8 million (FY10) from Rs 330.2 million (FY09).

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