Seeing recessionary economic trends, Television Eighteen (TV 18) has let go some 25 employees in the last few months and frozen new recruitment. The company has also asked all departmental heads to compulsorily cut 20 per cent off their operating costs.
TV 18 revenue declined by 15 per cent in during the first half of the year (April-September). Net profit for the six months period is down 17 per cent. Other measures to cut costs include a complete halt to extending loans to employees. Cost cutting has also been urged in the usage of facilities like cell phones and company cars.
CNBC India, which is distributed by Sony Entertainment Television, gets 75 per cent of its revenue through advertising while the balance, is through subscription. TV 18 has a 49 per cent stake in CNBC India.
TV 18 scrip, which crossed an all-time high of Rs 2,300 in February 2000, closed at 67.10 rupees on the Bombay Stock Exchange yesterday.