TV 18 consolidated Q2 net rises 36 per cent

Strong revenue growth from all its businesses has helped Television Eighteen Limited to report better than expected results for the second quarter. Though margins have declined because of a substantial rise in operating expenses – mostly staff costs – the volume growth has made up for it to some extent.

For the quarter ended 30 September 2006, TV 18 has reported a consolidated net profit of Rs13.58 crore, or Rs6.45 per share, after minority interests and cost of stock options issued to employees – an increase of 35.66 per cent over the previous year quarter figure of Rs10.01 crore, or Rs4.75 per share. Consolidated revenues increased 69.71 per cent to Rs53.01 crore from Rs31.24 crore during the previous year quarter.

Consolidated results include the financials of television news channels like CNBC TV 18, Awaaz, CNN-IBN and IBN 7 besides internet portals like moneycontrol.com and commodiitiescontrol.com.

Operating revenues from television news channels increased 61.5 per cent to Rs47.7 crore from Rs29.53 crore. Revenues from internet businesses jumped more than 3 times to Rs5.32 crore from Rs1.71 crore a year ago.

Operating expenses, excluding cost of employee stock options and revenue share to CNBC, more than doubled during the quarter to Rs28.1 crore from Rs13.97 crore during the previous year quarter. As a result, increase in operating profits was limited to 44.22 per cent to Rs24.9 crore from Rs17.27 crore. Operating margins declined to 46.98 per cent from 55.28 per cent achieved during the previous year quarter.

Cost of employee stock options rose to Rs2.47 crore from Rs1.16 crore a year ago while revenue share to CNBC increased 62.56 per cent to Rs1.41 crore.

Net interest expenses increased considerably to Rs3.05 crore from Rs1.15 crore. Depreciation charges were higher by 20 per cent at Rs3.84 crore while tax provisions were lower.

TV 18 said all its business and general news channels have achieved significant viewership and revenue growth in the latest reporting quarter. CNBC-TV 18 continues to lead the English business news segment while Awaaz has created a niche for itself. The English language general news channel CNN-IBN has claimed to be a market leader in many parameters.

The company had transferred all its internet businesses to a separate subsidiary, which raised $10 million from a stake sale to private equity investors. TV 18 claimed that its stock market and personal finance related website moneycontrol.com has become the most popular financial news website, overtaking wsj.com.