MUMBAI: Television Eighteen has decided to hive off its internet ventures and consolidate it into a new wholly owned subsidiary to bring sharper focus and growth momentum to these operations.
The internet subsidiary plans to raise capital from financial or strategic investors. TV18 board, which met today, has authorised the subsidiary of any such exercises to raise capital.
TV18 has been acquiring internet properties to create a bouquet. The company recently acquired a 50 per cent stake in the Indian arm of Jobstreet.com. Eariler in the year, it had invested in Yatra Online where other investors included Anil Ambani’s Reliance Capital and Norwest Venture Partners (NVP), Promod Haque’s leading venture capital firm.
The company also manages online platforms which include moneycontrol.com, commoditiescontrol.com, poweryourtrade.com and ibnlive.com.
The board of TV18 also announced the results. The company’s consolidated net profit is up 112 per cent to Rs 219.15 million for the quarter ended 31 March 2006 as against Rs 103.36 million a year ago.
The company’s revenues rose 66 per cent to Rs 535.10 million in the last quarter of the fiscal with news operations contributing Rs 474.75 million (up from Rs 310.96 million). The earnings from the internet and software operations were at Rs 60.35 million, up six times from a year ago period.
The revenues from Awaaz and CNN-IBN channels are not reflected in the Q4 result. The company’s operating profit stands at Rs 306.59 million while operating margins are at 57 per cent.
The group is all set to re-launch Channel 7 in new avatar in June. The group has recently, acquired a 50 per cent interest in Indian arm of Jobstreet.com.
Commenting on the result Television Eighteen promoter Raghav Bahl to our sister concern Indiantelevision.com said, “We are delighted to report a record quarter for the company – in terms of revenue performance and the spectacular success of CNN-IBN – which in just five months of launch has become the dominant player in the English General News category, firmly establishing the TV18 Group as India’s Premier News Network. We believe our new initiatives in the internet and home shopping spaces too will contribute significantly to our future growth.”
TV18 opened at Rs 609.85 and closed the trading day at Rs 627.60, after touching a high of Rs 646 and a low od Rs 625.