NDTV's TV division shows signs of turnaround; ecommerce generates losses

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By indiantelevision.com Team Posted on : 08 Feb 2014 04:34 pm

BENGALURU: New Delhi Television Limited (NDTV) reported a consolidated loss of Rs (10.43) crore in Q3-2014. Its Retail/ecommerce business reported an operating loss of Rs (5.38) crore, or 51.58 per cent of the total loss during the quarter.
 
NDTV’s Television media and related business operations (TV business) reported an operating profit of Rs 3.29 crore for Q3-2014 as compared to a loss of Rs (1.98) crore during the immediate trailing quarter and a profit of Rs 14.05 crore for the corresponding period of last year. For the nine month period ended 31 December 2013, the segment’s loss at Rs (16.11) crore was almost half (50.44 per cent) of the loss of Rs (31.94) crore in Q3-2013.
 
NDTV’s TV business reported revenue of Rs 131.02 crore in Q3-2014, which was 21.97 per cent more than the Rs 107.42 crore in Q2-2014 and 0.7 per cent more than the Rs 130.11 crore in Q3-2013. During the nine month period of the current year, NDTV’s TV business reported revenue of Rs 341.03 crore, which was 0.22 per cent more than the Rs 340.27 crore in the corresponding period of last year. For FY 2013, the segment reported revenue of Rs 527 crore.
 
Let us look at the Q3-2014 figures reported by NDTV
 
NDTV reported consolidated Total operating revenue of Rs 127.43 crore, which was 20 per cent more than the Rs 106.19 crore in Q2-2014, but (2.06) per cent lower than the Rs 130.11 crore in Q3-2013. For the nine month period ended 31 December 2103, the company reported Total operating revenue of Rs 336.01 crore which was (1.25) per cent lower than the Rs 340.27 crore in the corresponding period of last year. For FY 2013, NDTV reported Total operating revenue of Rs 526.81 crore.
 
Total expense at Rs 133.17 crore for Q3-2014 was (0.31) per cent lower than the Rs 133.58 crore for Q2-2014 and 10.32 per cent more than the Rs 120.71 crore during Q3-2013. YTD, total expense at Rs 392.52 crore was 1.44 per cent more than the Rs 386.92 crore in the corresponding nine month period of last year. For FY 2013, NDTV’s total expense was Rs 547.83 crore.
 
NDTV spent 4.24 per cent more towards marketing, distribution and promotional expense in Q3-2014 at Rs 26.49 crore as compared to the Rs 25.43 crore in Q2-2014 and 16.54 per cent more than the Rs 22.73 crore during the corresponding quarter of last year. For the nine month period ended 31 December 2103, the company spent Rs 73.49 crore towards marketing, distribution and promotional expense, which was (17.08) per cent lower than the Rs 88.63 crore in the corresponding period of last year. During FY 2013, NDTV spent Rs 131.26 crore towards this head.
 
NDTV’s employee benefit at Rs 43.29 crore was (3.63) per cent lower than the Rs 44.92 crore in Q-2014 and 12.88 per cent more than the Rs 38.35 crore in Q3-2013. YTD, the company spent Rs 133.14 crore towards Employee benefit, which was 14.73 per cent more than the Rs 116.05 crore during the corresponding nine month period of last year. For FY 2013, NDTV spent Rs 157.41 per cent towards Employee benefit.
 
NDTV reported a consolidated loss of Rs (10.43) crore for Q3-2014, which was almost a third less (31.65 per cent less) than the loss of Rs (15.26) crore for Q2-2014. During Q3-2013, NDTV had reported a consolidated profit of Rs 14.87 crore. For the nine month period ended 31 December 2103, the segment reported a loss of Rs (49.75) crore, which was almost, double (1.92 times) the loss of Rs (25.88) crore in the corresponding period of last year. For FY 2013, NDTV reported a consolidated profit of Rs 1.91 crore.
 
NDTV’s Retail/ecommerce business, which commenced operations earlier this financial year, reported revenue of Rs 2.31 crore which was more than four times the Rs 0.52 crore revenue in the immediate trailing quarter. As mentioned above, this segment reported loss of Rs (5.38) crore in Q3-2014 as compared to a loss of Rs (3.37) crore in the immediate trailing quarter. The capital employed by this segment has eroded further to Rs (18.15) crore in Q3-2014 from the Rs (6.86) crore in Q2-2014.
 
During the quarter, NDTV Ethnic Retail Limited, a subsidiary of NDTV has acquired 100 per cent stake in JA Ethnic Retail Private Limited, with effect from 28 November, 2013 (acquisition date).
 
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