If industry sources are to be believed, etc Networks is expected to end the current fiscal on a profitable note. The company ended March 2001 with a profit after tax of Rs 2.43 crores on a turnover of Rs 53.82 crores. The dip in revenues is mainly because the company has withdrawn from marketing programmes on southern language channels.
Despite claims that it has been maintaining its growth in advertising revenues and popularity, the company, as a media scrip, has gone unnoticed on the stock markets.
The share is now quoting around Rs 19, up from Rs 12 traded two months ago at the Bombay Stock Exchange.
The company has an equity base of Rs 11.69 crores, with promoters holding 48.42 per cent, FIIs/NRIs 10.46 per cent, financial institutions and mutual funds 8.81 per cent, corporate bodies 22.33 per cent and public 11.97 per cent.
Industry observers are confident that etc Networks' business model will help it survive stiff competition. It had entered into a tie-up with T.V. Asia, a 24-hour Hindi channel in the US, to provide content. The deal involved ETC providing two hours of Gurbani music to this channel.
etc has targeted an overseas subscriber base of 300,000 in the next two years bringing in a revenue of $5 per subscriber every month. Encouraged by the demand for Gurbani, ETC Networks plans to make the Punjabi channel pay by the third quarter of 2002.
etc Networks has put its decision to set up a teleport in Mumbai on hold following the Singapore-based Thaicom’s plans to set up an uplinking facility in the country.