Despite curbing costs, NDTV piles up losses worth Rs 68.79 crore owing to top line depletion

The company registered a loss of Rs 54.82 crore after taxes, minority interest and share of associates in FY16

e4m by Saif Ahmad Khan
Published: May 17, 2017 3:01 PM  | 3 min read
Despite curbing costs, NDTV piles up losses worth Rs 68.79 crore owing to top line depletion

The financial results for the fiscal year ended March 31, 2017, can be best described as a mixed bag for the NDTV Group. From the standpoint of revenues, the news broadcasting giant’s total income plummeted by 7.2% from Rs 577.12 crore to Rs 535.21 crore. On the other hand, however, the company led by Prannoy Roy and Radhika Roy managed to outdo their expenditure from the previous year. Having keenly managed their costs especially during the latter half of the year, NDTV was successful in bringing down its expenses significantly from Rs 645.23 crore to Rs 593.02 crore.

Though the network remained entrenched in losses, the sum total reduction of costs by Rs 52.12 crore or 8.09% was a positive indicator for the company. While the losses incurred before tax deductions and exceptional items were cut short to Rs 57.81 crore, losses after taxes, minority interest and share of associates went up to Rs 68.79 crore.

Top line depletion

The 12 months from April 2016 to March 2017 saw NDTV accumulate Rs 522.67 crore as revenues from operations. The bulk of this money came from NDTV’s television media business and related operations. Segment-wise results placed the exact figure from the same at Rs 515 crore. The e-commerce/retail business simultaneously created revenues totalling Rs 14.34 crore. It is noteworthy to mention that the figure of Rs 522.67 crore was arrived at after deducting inter-segment revenues worth Rs 6.67 crore from the combined income of television and e-commerce business.

On a comparative basis, revenues from both the television and e-commerce business de-grew by 7.8% and 11.1%, respectively. During FY16, NDTV garnered Rs 559.13 crore from their television business whereas their e-commerce property brought in Rs 16.14 crore. De-growth from both ends ensured the erosion of revenues from operations by more than Rs 40 crore from Rs 565.76 crore to Rs 522.67 crore.    

On a positive note, the top line positioning improved owing to an increase in revenues via other income to Rs 12.54 crore from Rs 11.36 crore earlier. As a result, NDTV’s total revenues in FY17 came to be Rs 535.21 crore, lower than Rs 577.12 crore in FY16.

Reduced costs

With the notable exception of employee benefit expenses which went up from Rs 201.36 crore to Rs 213.21 crore, every other major business expenditure was successfully curbed. For instance, production expenses and cost of services went down from Rs 123.72 crore to Rs 120.84 crore. Similarly, operating and administrative expenses reduced to Rs 125.04 crore from Rs 132.76 crore.

Most importantly, NDTV saved almost Rs 40 crore on marketing, distribution and promotion expenses. The expenditure on these was curtailed to Rs 88.67 crore from Rs 126.63 crore previously. Besides these, depreciation and amortization costs, purchase of stock in trade and changes in inventories of stock in trade also decreased. Finance costs, however, increased. Nevertheless, the extensive cost-cutting across heads was not sufficient to turn NDTV profitable as its annual expenditure of Rs 593.02 crore outran its entire income totalling Rs 535.21 crore. 

Unhealthy bottom line

At the end of the previous fiscal i.e. FY16, NDTV carried an after tax loss of Rs 54.82 crore to the reserves. Far from improving the dismal bottom line showing, NDTV’s losses after tax, minority interest and share of associates grew by 25.48% to Rs 68.79 crore. With the company already sitting above losses over Rs 300 crore, additional losses will only end up putting further stress on the bottom line.

Being one of the oldest private news broadcasters in the country, NDTV is now faced with the mighty task of managing its hapless bottom line standing. Though the market is making a comeback following the jolt of demonetisation in November last year, it will take a lot more than merely cutting costs for NDTV to be able to tackle losses amounting to Rs 370 crore.       

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WION to launch on UK’s DTT platform Freeview

The channel will be available from March 22, 2023

By exchange4media Staff | Mar 21, 2023 3:56 PM   |   2 min read

wion

WION, World Is One will launch on the UK’s leading platform – Freeview via IP and using the most innovative FAST SSAI on 22nd March 2023. The channel expanded its global footprint and increased its reach by 15 mn Freeview Connect households in the UK. Viewers in the UK can tune in to the channel on Channel #287 via Freeview, starting March 22, 2023.

Emphasising the global partnership and outreach, Madhu Soman, Chief Business Officer of WION, said, “WION has always been open to exploring new platforms. Taking into consideration the fact that Freeview replaced the old analogue TV service accessibility to a widespread audience in the UK, it is a great opportunity for the channel to present global stories from an Indian perspective. This global move also encourages us to further boost timely and fast-paced news reportage with gripping visuals and strong content, backed by research and investigation.”

Anindya Khare, Marketing Head of Zee Media Corporation Limited, further added, “The United Kingdom television viewing market is expected to flourish because of some major factors like emerging economies' rapid economic development, demand for smart televisions, the growing over-the-top platform market etc. We strongly believe that the UK market has a lot of potential for the channel to introduce new customised programme packaging to the audience, engage stakeholders through strategised communication and build on a high preference ratio.

Through a strategised approach, we also look forward to being consistent in launching interesting programmes on WION in markets like US, India, UK etc. This allows our glocalised viewers and readers to understand the impact of major global events from a uniquely Indian perspective.”

“We are thrilled to launch WION via Freeview Connect and expand Freeview news offering with the leading news channel from India and also being able to monetise it using the Synapse FAST SSAI”, said Tanya Kronfli, Managing Director of Global Distribution Services, specialising on delivery and digital Monetisation of TV content via Freeview Connect.

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Gauranga Das Prabhu to be part of enba jury panel

Prabhu is an author, spiritual leader, inspirational speaker and member of ISKCON’s Governing Body Commission

By exchange4media Staff | Mar 21, 2023 8:57 AM   |   2 min read

gauranga Das

Gauranga Das Prabhu, an author, spiritual leader & inspirational speaker, has joined the exchange4media News Broadcasting Awards (enba) jury panel. Das, a graduate from IIT Bombay, is a member of ISKCON’s Governing Body Commission. He is actively involved in enhancing leadership effectiveness and governance of temples and communities globally.

Owing to his expertise in presenting vedic knowledge in a contemporary and enticing way, he has been a part of TEDx events and corporates like Intel, Salesforce, Google etc. He is the director of ISKCON’s Govardhan Ecovillage (GEV), founded by Radhanath Swami Maharaj. The GEV has won several awards, including United Nations World Tourism Organization (UNWTO) Award in 2017.

He has enabled GEV’s accreditation with multiple United Nation bodies like UNEP, UNCCD, ECOSOC and CBD. On behalf of ISKCON, he is UNEP’s Faith for Earth Counsellor.

enba was formulated by the exchange4media group in 2008 with the objective of recognizing the best in television news. The awards recognise and honour industry leaders who are responsible for shaping the future of television broadcasting in India. This year, enba is in its 15th edition. The jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

In the last editions, the enba jury was led by Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr Kiran Karnik – Former President – Nasscom, Dr Nasim Zaidi - Former Chief Election Commissioner of India, SY Quraishi – Former Chief Election Commissioner of India, N Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India.

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Longest-ever DD Free Dish auction gives Prasar Bharati Rs 1069 crore

The average price per slot stands at Rs 16.5 crore

By Sonam Saini | Mar 21, 2023 8:49 AM   |   3 min read

DD free dish

Public broadcaster Prasar Bharati has mopped up Rs 1069.60 crore from the e-auction of 65 MPEG-2 slots on DD Free Dish.  The broadcaster's total revenue has seen a 66 per cent jump compared to last year's auction.

On the last day of the auction on Monday, seven slots were sold, with the highest bid of Rs 18.7 crore coming from Bflix. Other channels that secured the slots on the last day were Enterr10 (Rs 17 crore), GNT (Rs 17.9 crore), India TV (Rs 18.65 crore), Bharat 24 (Rs 17.15 crore), ABZY Cool (Rs 16 crore) and Sun Marathi (Rs 18.5 crore). 

This is the first time in the history of DD Free Dish auction that the process went on for eight days. The auction was conducted over the weekend as well. 

The auction saw participation of broadcasters from different genres. However, the big four networks' Hindi general entertainment channels Star Utsav, Zee Anmol, Sony Pal and Colors Rishtey stayed out of the auction.

"The revenue could have gone up if these four channels had participated," said industry sources.

The average price per slot this year stands at Rs 16.5 crore. 

In the Bucket A+ category, which comprises Hindi GECs, 11 slots were sold for Rs 189.65 crore.

Last year, there were six slots in this category which were sold for Rs 91.1 crore. The highest bid in this genre was made by The Q India for Rs 17.9 crore. Other channels that bagged the slots were Dangal, Shemaroo TV, Manoranjan Grand, Manoranjan TV, Big Magic, Shemaroo Umang, Nazara, Dangal 2, Ishara TV and Shemaroo Ashirwad. The base price for this category last year was Rs 15 crore. 

Under the Bucket A (movie channels), 19 slots were sold for Rs 329.55 crore this year. The highest bid in this category was made by Zee Anmol Cinema for Rs 24.05 crore. In fact this was the highest price ever paid for a movie channel slot in the history of DD Free Dish auction. Last year, 16 slots were sold for a total of Rs 166.55 crore in this category.

Under Bucket B, which comprises (music Hindi channels, sports, and all channels of Bhojpuri languages), 12 channels were sold for Rs 206.85 crore. The highest bid in this category was by Zee Biskope for Rs 22.1 crore. The lowest bid in the music genre was made by 9XM for Rs 15.2 crore. 

Sources said, “The best bid came from 9XM, a music channel. They strategically waited for their turn and took a slot at Rs 15.2 crore, which is well below the average price paid for the other six music channel slots.”

Under Bucket C (Hindi news channels), 12 channels secured slots for Rs 199.1 crore in this year's auction. News18 India paid the highest price for the first slot at Rs 19.85 crore. Other channels that secured slots were Aaj Tak, TV9 Bharatvarsh, R Bharat, Zee News, ABP News, NDTV India, News Nation, Times Now Navbharat, Bharat 24, India TV and GNT.

In the 2022 e-auction, the pubcaster earned Rs 120 crore from the sale of 14 slots in this category.

Under Bucket D (all other remaining genre of Hindi, devotional channels, all genre of marathi, Punjabi and Urdu channels and news english channels), 10 slots sold out for Rs 144.45 crore. At Rs 18.5 crore, the top bidder in this category was Sun Marathi. Under Bucket R1 only one channel, Popular TV, bagged the slot for Rs 3.05 crore.

Compared to 2023, in 2022, the pubcaster earned Rs 645 crore from the allotment of 59 MPEG-2 slots. 



 

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FreeDish e-auction ends, Prasar Bharati earns Rs 1073 crore from 65 slots

On the last day on Monday, seven slots were auctioned. The highest bid came from Bflix

By exchange4media Staff | Mar 20, 2023 6:43 PM   |   1 min read

DD Free Dish

Public broadcaster Prasar Bharati has mopped up Rs 1073 crore from the e-auction of 65 MPEG-2 slots on DD Free Dish.  

On the last day of the auction on Monday, seven slots were sold, with the highest bid of Rs 18.7 crore coming from Bflix. Other channels that secured the slots on the last day were Enterr10 (Rs 17 crore), GNT (Rs 17.9 crore), India TV (Rs 18.65 crore), Bharat 24 (Rs 17.15 crore), ABZY Cool (Rs 16 crore) and Sun Marathi (Rs 18.5 crore). 

This is the first time in the history of DD Free Dish auction that the process went on for eight days. In fact, the auction was conducted over the weekend as well. 

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enba: Prasanth Kumar joins jury panel

Kumar is the CEO of GroupM-South Asia

By exchange4media Staff | Mar 20, 2023 8:19 AM   |   1 min read

PK

Prasanth Kumar, CEO - GroupM South Asia, has joined the exchange4media News Broadcasting Awards (ENBA) jury panel. Kumar, popularly known as PK, has over 25 years of industry experience.

Before joining GroupM, Kumar was associated with companies like Pepsi, The Hindu, The Media Edge & McCann Erickson.

Kumar is currently President of AAAI for the 2022-23 term.

The exchange4media Group formulated enba in 2008 with the sole objective of recognizing the best in television news. The awards recognise and acknowledge industry leaders who are responsible for shaping the future of television broadcasting in India. This year, ENBA is in its 15th edition. The grand jury this year will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

In the previous editions, the enba jury was led by Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr Kiran Karnik – Former President – Nasscom, Dr Nasim Zaidi - Former Chief Election Commissioner of India, SY Quraishi – Former Chief Election Commissioner of India, N Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-Chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India. 

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Free Dish e-auction: 25 channels pick up slots in rounds 2 & 3 

According to sources, the pubcaster has mopped up approximately Rs 409 crore in these two rounds; bidding for remaining rounds to continue on March 20

By Sonam Saini | Mar 20, 2023 8:01 AM   |   2 min read

TV

Prasar Bharati continued the e-auction for vacant MPEG-2 slots on DD Free Dish on the weekend with 25 channels picking up slots in rounds 2 and 3.

The starting receive prices for each round were Rs 16 crore and Rs 13 crore, respectively. 

While the buckets eligible for bidding in round 2 were A+, A, B, C, D and R1, round 3 saw bidding for buckets A, B, C, D and R1. 

According to industry sources, the pubcaster has mopped up approximately Rs 409 crore in these two rounds. 

The channels that secured slots in round 2 were Sony Wah (Rs 20.25 crore), Star Gold Thrill (Rs 17.85 crore), Colors Cineplex Bollywood (Rs 17.5 crore), Shemaroo Ashirwad (Rs 17 crore), Dangal 2 (Rs 16.8 crore), Shemaroo Umang (Rs 16.65 crore), Nazara (Rs 16.6 crore), Manoranjan Prime (Rs 16.7 crore), Goldmine Bollywood (Rs 16.7 crore), Ishara (Rs 16.75 crore), Goldmines (Rs 16.9 crore) and B4U Music (Rs 17.05 crore). 

The channels that picked up slots in round 3 were Showbox (Rs 17.05 crore), Dil Se (Rs 17.05 crore), Filmachi (Rs 16.7 crore), Goldmines (Rs 15 crore), Aastha Channel (Rs 15.05 crore), Times Navbharat (Rs 15.15 crore), another slot by Goldmines (Rs 15.35 crore), B4U Bhojpuri (Rs 15.05 crore), Bhojpuri Cinema (Rs 15.1 crore), News Nation (Rs 15.05 crore), Aaj Tak (Rs 15.1 crore), 9XM (Rs 15.2 crore) and Movie Plus (Rs 15.2 crore).  

In round 1, 33 channels bought slots for over Rs 538 crore.

The pubcaster has so far earned around Rs 947 crore from the e-auction. The remaining rounds (i.e. rounds 4, 5, 6 and 7) will go up for bidding on March 20.

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Madan Bahal joins enba jury panel

Bahal is the Co-Founder and Managing Director of Adfactors PR

By exchange4media Staff | Mar 18, 2023 8:30 AM   |   1 min read

enba

Madan Bahal, Co-Founder and Managing Director of public relations firm - Adfactors PR, has joined the exchange4media News Broadcasting Awards (ENBA) jury panel. Over the past 25 years, Bahal has served as a lead communication counsel in many of the milestone events of Corporate India, including fundraises, M&As, disputes, litigations, issues, and crises.

Bahal is known for providing leadership to the Indian PR industry during major events such as the global financial meltdown in 2008, and the two years of the Covid-19 pandemic. He is also a member of the governing council of The Yoga Institute, Mumbai – the world's oldest body of organised yoga teaching.

In September 2022, the Arthur W. Page Society inducted Bahal into its Hall of Fame. In October 2020, PRovoke recognised his firm Adfactors PR as one of the seven global agencies of the decade.

enba was formulated by the exchange4media Group in 2008 with the objective of recognizing the best in television news, and for rewarding industry leaders who have shaped the future of television broadcasting in India. This year, enba is in its 15th edition, and the jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

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