MUMBAI: Reliance Broadcast Network Limited (RBNL) expects to achieve break-even from its television business on an operating basis for the fourth quarter of this fiscal.

The company?s confidence stems from narrowing operating loss led by a sharp reduction in carriage costs.

?Barring unforeseen circumstances, the company expects to exit the current financial year with TV business achieving break-even at an operating level,? the company said.

RBNL?s operating loss from television business in the first quarter ended 30 June 2012 was down nearly 55 per cent to Rs 116.93 million from Rs 258.79 million a year earlier.

The company said the reduction in operating loss was largely on account of a 70 per cent cut in carriage costs, but did not specify how much it spent in the quarter on account of the money paid to multi-system cable operators (MSOs) and direct-to-home (DTH) companies for carrying their television channels.

Revenue from the television business in the first quarter was Rs 66.34 million. It is against Rs 18.14 million in the first quarter of last year, which were initial days for RBNL?s television business. In the fourth quarter of last year, RBNL?s television business revenue Rs 103.36 million.

RBNL operates five channels ? three English language entertainment channels Prime, Love and Spark, a Punjabi language channel Spark Punjabi, all the four under its joint venture Big CBS Networks, and Big Magic, a regional general entertainment channel for the Hindi heartland. RBNL has a 50:50 joint venture with media conglomerate CBS.

The television financial results, thus, reflect the 50 per cent of the JV company Big CBS.

The operating break even will confine to the current television businesses of RBNL, a company official said The forecast does not include RBNL?s joint venture with RTL. The company plans to launch a channel called Thrill through the RTL JV this fiscal.

RBNL?s consolidated revenue in the first quarter was Rs 557.45 million, down 25 per cent per cent from Rs 751.72 million a year earlier. The revenue contraction was on account of a fall in revenue of radio and television production businesses.

RBNL?s revenue from the radio business fell 19 per cent to Rs 396.38 million from Rs 494.46 million a year earlier. Its revenue from production business at Rs 52.79 million in the first quarter was down 68 per cent from Rs 166.34 million a year earlier.

The radio business of RBNL actually slipped into a loss in the first quarter of 2012-13 with an operating loss of Rs 10.14 million against operating profit of Rs 74 million a year earlier. In the fourth quarter ended 31 March 2012, the operating profit from radio business was Rs 91.78 million. The company operates Big 92.7 radio station.

RBNL has, however, managed to narrow its consolidated net loss to Rs 287.04 million from Rs 291.34 million a year earlier. Its consolidated income from operations plunged 29 per cent to Rs 526.64 million in the first quarter from Rs 745.30 million a year earlier, but what helped the company narrow its loss was nearly halving of direct operational expenses (down 48 per cent) to Rs 268.96 million from Rs 521.12 milion a year earlier.

RBNL CEO Tarun Katial said, ?RBNL had a satisfactory quarter in the given environment, backed by product innovation and optimal cost management. Our key businesses of radio and television stand to benefit significantly from imminent industry reforms of Phase III and digitisation, respectively."