Cyber Media India Ltd has reported a consolidated net profit of Rs 2.28 crore in the third quarter ended December 31, 2008, as against Rs 66.6 lakh in the corresponding quarter of FY08. Total income in Q3 rose marginally to Rs 29.45 crore as against Rs 29.29 crore in Q3 of FY08.
The total expenditure of Cyber Media for Q3 stood at Rs 31.59 crore as against Rs 25.77 crore in Q3 of the previous fiscal, of this Rs 10.03 crore was incurred as employee cost.
The top line of the company grew by 17 per cent though margins were impacted by acquisitions, new media launches and diversification.
The company has been reducing its dependence on print ads, with print ads now accounting for 39 per cent of the total turnover as against 49 per cent in the previous corresponding period. On the other hand, media services business is being expanded and now it accounts for 49 per cent of the total turnover as against 34 per cent earlier.
The US recession has impacted the two acquisitions made by the company in the US. Consequently, the service business profitability was impacted adversely. Measures have been initiated in Q3 to address profitability concerns.
The slowdown in Indian economy also affected the media business due to reduced media spends. In line with the global trends, its product ‘Global Services’ has moved completely online. The company has also merged ‘Voice & data Connect’ into ‘Voice & Data’, which the company hopes would improve the profitability of the media business.
Cyber Media expects its Q4 results to be under pressure due to the economic slowdown and global recession. The company has initiated cost control measures and organisational restructuring, which is expected to result in an improved situation in 2009-10.