The board of directors at New Delhi Television has reappointed Prannoy Roy and Radhika Roy as Executive Co-Chairpersons following a loss-making quarter. The reappointment for a period of three years will be with effect from July 1, 2017 after due approvals from the company’s shareholders. NDTV, the oldest private news broadcaster in the country, recently reported significant losses for the quarter ended December 31, 2016.
Losses almost doubled
During Q3 FY 2017, NDTV sustained an EBITDA loss of Rs 7 crore as its expenditure of Rs 140 crore exceeded total revenues amounting to Rs 133 crore. When compared to the corresponding three months during the last fiscal, the losses almost doubled with a reported 75% increase. The overall losses sustained in Q3 FY 2016 stood at Rs 4 crore.
In the realm of broadcasting, NDTV posted a loss Rs 9 crore whereas the company was profitable during Q3 FY 2016 at Rs 3 crore. Revenues garnered from broadcasting also recorded a sharp fall from Rs 130 crore last year to Rs 108 crore. The broadcaster primarily attributed the losses “to downturn in TV advertisement revenues in the current quarter” as a result of demonetisation.
As far as NDTV’s e-commerce business is concerned, losses were cut short by 50% as they came down to Rs 5 crore from Rs 10 crore. The revenues from e-commerce for the quarter remained unchanged at Rs 4 crore but expenses stooped to Rs 9 crore as opposed to Rs 14 crore before.
Digital business shines
The financial results from the digital businesses would serve as a silver lining for NDTV. The period between October-December 2016 saw it generate revenues of Rs 34 crore in relation to digital ventures. Profits for the period tripled from Rs 2 crore to Rs 7 crore thereby recording 250% growth.
In the months ahead, the company is eyeing to successfully achieve a turnaround plan. “The company has initiated steps to rationalise costs and increase productivity with an aim to improve overall efficiency of operations,” NDTV told NSE.
Towards the end of October 2016 when KVL Narayan Rao took over as Group CEO from Vikram Chandra, he recognised the “financial turnaround of the company” as the foremost objective. Also shouldering the responsibility of Executive Vice Chairperson, Rao vowed to deliver in terms of both top-line and bottom-line growth.