NDTV Curtails Q2 Net Loss YoY But QoQ Loss Rises

Media firm NDTV Ltd has reined in its bottomline by cutting consolidated net loss net loss by two thirds in the quarter ended September 30 to Rs 22.3 crore, as against net loss of Rs 67.63 crore recorded in the same quarter in the previous year even as sequential quarter performance was not too exciting.

Sequential net loss rose 24 per cent over the first quarter ended June 30, 2011 and revenues was also marginally lower compared to Q1 FY'12.

But the firm reported a robust revenue growth to hit consolidated income from operations of Rs 105.77 crore for the quarter ended September 2011, up 28 per cent from Rs 81.95 crore in the same quarter in the previous fiscal. This was supported by cut in total expenses from Rs 147.18 crore in Q2 FY'11 to Rs 128.57 crore in the last quarter, despite production expenses soaring around 30 per cent to Rs 22.67 crore. Operating and administrative expenses have almost halved compared to the same period in the previous year which improved operating efficiency.

NDTV runs three news channels – NDTV 24/7, NDTV India, and NDTV Profit, as well as NDTV Good Times and global channels Astro Awani, a channel in Malaysia, and Independent Television with Beximco Group in Bangladesh. Its subsidiaries include NDTV Lifestyle, NDTV Convergence and NDTV Labs (which develops media software and technology), plus a 50:50 joint venture with IT company Genpact called NGEN Media Services, a media process outsourcing business.

The company that turnaround reporting a standalone net profit of Rs 9.8 crore in the previous quarter due to one-time 'other income' coming through as dividend income from its subsidiary NDTV One Holdings Ltd, has slipped into losses at a standalone level again. For the quarter, standalone net loss was Rs 10.7 crore. It has witnessed a 19 per cent yearly rise in standalone operating income, to reach Rs 81.09 crore in the second quarter of the fiscal.

NDTV's ad revenues are from the channels - NDTV 24X7, NDTV India and NDTV Profit. Standalone business income primarily comprises revenue from national and international subscription for pay channels and income from shared services.

Key Developments In The Quarter

NDTV's CEO Vikram Chandra has been appointed an Executive Director of the company.

Metro Nation Sold To Dina Thanthi For Rs 15Cr: NDTV's joint venture with Kasturi and Sons Ltd (the group behind The Hindu daily) called Metro Nation Chennai Television Ltd, for running the Chennai-specific English news and current affairs TV channel NDTV Hindu, has been sold to Educational Trustee Company Pvt. Ltd., the promoters of Tamil daily Dina Thanthi. Metro Nation will become a 100 per cent subsidiary of Educational Trustee Company.

Hence, NDTV has provided for doubtful debts and advances amounting to Rs 2.30 crore and has written back provision for diminution in value of investment amounting to Rs 5.20 crore, as an exceptional item.

The company has announced that its subsidiary NDTV Mauritius Media Limited has been merged with NDTV One Holdings Limited with effect from September 2011. NDTV One Holdings has reported dividend income amounting to Rs 536 lakh in the quarter, which has been included within Other Income.

With effect from October 20, the company has also begun liquidating NDTV Networks Plc, its UK subsidiary.

In October, the board of Directors of NDTV (Mauritius) Multimedia Limited and NDTV Worldwide Mauritius Limited, approved the merger of NDTV Worldwide Mauritius Limited with NDTV (Mauritius) Multimedia Limited.