This has been an investment year for NDTV with an aim to turn around loss-making verticals and incubate new growth businesses

BestMediaInfo Bureau | Delhi | May 9, 2014

ndtv-greyNDTV has reported Rs 496 crore of consolidated revenue for the financial year ended March 31, 2014 and EBITDA loss of Rs 29 crore. The Q4 numbers for FY14 include one-time write-offs amounting to Rs 14 crore. University Cricket Championship, which contributed Rs 33 crore in revenue in Q4 in FY13, was also postponed this year.

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.

NDTV is No. 1 in viewership among all English News Channels based on independent nationwide survey of a 90,000 + sample by Hansa Research.

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 24×7 has been PAT positive for the last five years, with an average annual profit of Rs 40 crore. The channel continues to command unrivalled viewership (50% plus) in the English news genre.

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

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

NDTV Worldwide, the consultancy arm of the group, has been profitable for the past four 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 record-breaking revenues in FY 2014 and achieved EBITDA breakeven.

–          NDTV Profit which had been making average annual losses of Rs 40 crore for the last three years is expected to turn around after its revamp.

–          The revenues of the dual channel with pre-sponsored bands are up 140% in April 2014.

– The e-tailing venture’s revenues are up by 40% on a Q-o-Q basis. The incubation costs of Rs 25 crore have been well spent. Talks are on for a private placement at very attractive valuations.

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