Incubation costs, one time write-offs, event postponement widen NDTV loss in Q4-2014

BENGALURU: New Delhi Television Limited (NDTV) reported a negative PAT of Rs 31.39core in Q4-2014 as compared to a loss of Rs 10.43 crore in the immediate trailing quarter Q3-2014, and a profit of Rs 27.81 crore in the year ago quarter Q4-2013.


For the year as a whole, the company reported a higher loss of Rs 81.18 crore in FY-2014 as compared to a profit of Rs.1.91 crores in the previous fiscal FY-2013.

(Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million)


The company says in its earnings release that the Q4 numbers for FY-2014 include one-time write-offs amounting to Rs 14 crore. University Cricket Championship, which contributed Rs 33 crore in revenue in Q4 in FY-2013 was also postponed this year.


Further the company informs that this has been an investment year for NDTV with an aim to turn around loss making verticals and incubate new growth businesses. Significant incubation costs for NDTV Prime and NDTV e-tailing venture have contributed to the annual losses. These businesses are now showing robust revenue growth, and are heading for profitability, claims NDTV.


Let us look at the other figures reported by NDTV for Q4-2014 and FY-2014


NDTV reported a 2.62 per cent drop in Income from operations (Op Inc) in Q4-2014 to Rs 124.09 crore from Rs.127.43 crore in Q3-2014 and a drop of 33.48 per cent from Rs 185.56 crore in Q4-2013.


The company reported a 12.66 per cent drop in Op Inc to Rs. 460.10 crore in FY-2014 as compared to Rs.526.81 crore in FY-2013.


Two segments now contribute to NDTV’s revenues - a) Television Media and related operations  (TV) and b) Retail/E-commerce (Retail).


TV revenue in FY-2014 dropped 13.70 per cent to Rs 454.63 crore from Rs.526.81 crore in FY-2013. NDYV’s TV segment’s Q4-2014 Op Inc at Rs 113.61 crore was 13.29 per cent less than the Rs 131.02 crore in the previous quarter Q3-2014 and was 39.10 per cent lower than the Rs 186.56 crore in Q4-2013.


This segment reported a loss of Rs 29.56 crore in Q4-2014 as compared to a positive result of Rs 3.29 crore in Q3-2014 and a positive result of Rs 35.53 crore n Q4-2013. During FY-2014, the TV segment reported a loss of Rs 30.88 crore as compared to a profit of Rs.3.62 crore  in FY-2013.


NDTV’s Retail segment reported an Op Inc of Rs 3.5 crore in Q4-2014 as compared to revenue of Rs 2.31 crore in Q3-2014. In FY-2014, it reported revenue of Rs  6.32 crore. Since the segment commenced operations in FY-2014, the company did not report any numbers for it in FY-2013.


The Retail segment reported a loss of Rs 24.88 crore in FY-2014, while the segment result was NIL in Q4-2014 as compared to a loss of Rs 5.38 crore in Q3-2014.


Marketing, Distribution and Promotional Expenses


The company's  Marketing, Distribution and  Promotional Expenses  show an upward trend in terms of absolute rupee value; in terms of percentage of Op Inc.,  the movement is downwards during the four quarters of FY-2014.


Excerpts of what the company has to say:


The Board of NDTV has mandated the management to explore means of unlocking sum of parts shareholder value, through various methods including restructuring or a private placement in NDTV Convergence and/or other subsidiaries.


It is worth noting that NDTV 24x7 has been PAT positive for the last 5 years, with an average annual profit of Rs. 40 crores. The channel continues to command unrivalled viewership (50 per cent plus) in the English news genre.


NDTV Convergence has registered a CAGR of 54 per cent over the last 6 years and is targeting a significant jump in revenues to touch Rs. 100 crores in the coming year.


NDTV Lifestyle Holdings has a cash balance of more than Rs. 110 crores.


NDTV Worldwide, the consultancy arm of the group, has been profitable for the past 4 years.


And now, there are successful efforts to turn around businesses which have been loss making.NDTV India historically a loss making channel, has clocked recordbreaking revenues in FY 2014 and achieved EBITDA breakeven.


NDTV Profit which had been making average annual losses of Rs. 40 crores for the last 3 years is expected to turn around after its revamp. The revenues of the dual channel with pre-sponsored bands are up 140 per cent in April 2014. – The e-tailing venture’s revenues are up by 40 per cent on a q-o-q basis. The incubation costs of Rs. 25 crores have been well spent. Talks are on for a private placement at very attractive valuations says the company.


Latest Reads
US$ 4.5 bn expected from IPL rights; SC recommends accounts scrutiny

The Supreme Court on Friday froze all financial transactions between the BCCI and state cricket associations by directing the apex body not to disburse any funds till it resolves to abide by the Justice RM Lodha panel recommendations on reforms by 3 December . The top court ordered that none of...

Television TV Channels Sports
TVS Tyres is co-presenter for Asian Champions Trophy 2016

Continuing its strong connect with sports, TVS Tyres has associated with Asian Champions Trophy 2016 by becoming the co-presenter. The Asian Champions Trophy is one of the premier hockey tournaments, a much sought after annual international competition promising some great hockey action. This...

Television TV Channels Sports
Q2-17: Zee Learn declares maiden interim dividend

The board of directors of the Essel group’s education company Zee Learn Limited (ZLL) have declared a first time ever dividend of 5 percent per equity share of Re 1 each for the quarter ended 30 September 2016 (Q2-17, current quarter).

Television TV Channels Factual & Documentary
Whether BARC action can stop unethical practices?

MUMBAI: Can businesses and industries practise their art of selling fairly although they have 'Fair Practices' training during academic courses, workshops and several ISO and other certifications? There seems to be the fear of the lawman, and not the law in India. If the traffic cop is watching,...

Television TV Channels Viewership
TV Superhighway: beIN, Yaddo, AfricaXP have joined us, says Magine CEO Ambuj Goyal

CANNES; Magine has secured partnerships with four of the industry’s most exciting sports, documentary and entertainment content providers. Partnerships with beIN, the international media group and owner of MIRAMAX; Yaddo, the new documentary streaming service headed up by former head of The BBC’s...

Television TV Channels Factual & Documentary
Colors emerges strong on strength of Naagin I & II

MUMBAI: One of the top rated shows Naagin Season 2 helped Colors reach a top-ranking position.

Television TV Channels GECs
Pakistan Broadcasters Association to oppose PEMRA Indian content ban

MUMBAI: The Pakistan Electronic Media Regulatory Authority (PEMRA) shocked both Pakistan and Indian broadcasters when it issued an order blanking out  all Indian content from Pakistan’s television channels on 19 October.

Television TV Channels GECs
Sony Pix to telecast 'Jurassic World' on 22 October

Sony Pix will take the viewers on a thrilling, adventurous journey with cloned dinosaurs in their Billion Dollar Premiere property. The channel plans to air Jurassic World on 22 October at 1 pm and 9 pm.

Television TV Channels English Entertainment
Sony AXN scripts deal with Pinewood; buys stake in SVOD service Hopster

Folks at Sony Pictures Television (SPT) are in a celebratory mood. Not only has it signed a six-series deal with Pinewood Television but has also acquired a minority stake in the London-based video subscription service for kids content - Hopster.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories