Good news for NDTV, as its net loss for the third quarter has shown a steep fall and has reduced to Rs.16.6 million. This reduction is a result of the cost efficient policies adopted by the channel and also due to the three percent growth in revenues. Another income of Rs.5.4 million has also made its financial position firm in the market.
NDTV had showed a net loss of Rs. 174.8 million for its third quarter of the fiscal year 2009. The company owns and runs news channels NDTV India (Hindi), NDTV 24X7 (English), NDTV Profit (English Business). Because of its sweating efforts, the company managed to bring down the expenses up to 821.8 million, which is a significant 11.94% less than the previous period.NDTV has registered a considerable elevation of 849.8 million in its income as compared to Rs.824.6 million a year ago.
However, compared to the loss of Rs. 108.6 million, the company posted its operational profit of Rs. 28 million on the basis of its adequate operations. The whole credit for this profit can be given to theNDTV’s four step restructuring policy implemented by the company.
For the third-quarter, the company has posted a net profit of Rs 741 million, as against a net loss of Rs 1.21 billion in the year-ago period. “An undertaking to provide a corporate guarantee given by the company to repay the 40 per cent of the outstanding bonds has ceased to exist upon re-purchase of the bonds. The resulting gain on buy back amounting to Rs 1.28 billion ($ 27.60 million) is included under other income,” the company noted.
NDTV also entered into an agreement with Turner Asia Pacific Ventures for the sale of most of its stake in NDTV Imagine Ltd for a total transaction value of $117 million, involving a sale of 92 per cent of NDTV Imagine on a fully diluted basis for a consideration of $67 million, together with the subscription to fresh shares in Imagine by Turner Asia Pacific Ventures for $50 million.
The total income gained operations are estimated at Rs.1.67 billion, which is 28.78% more as compared to Rs.1.3 billion in the last year. Expenses also registered for the quarter were Rs. 2.2 billion, less than Rs. 2.33 billion a year ago.
The operating loss for the company in the quarter of the earlier fiscal year was Rs. 1.03 billion. Whereas, it came down at Rs. 525.7 million in this quarter. Another gaining of Rs.1.28 billion on the buyback amount has been showed by the company.
The significant reduction in the outstanding borrowings and interest burdens is the outcome of the repurchasing of $100 million Step up Coupon Bonds for just $72.4million. According toNDTV all those restrictions that were attached with bonds freed it from the undertaking of providing $ 40 million guarantee to the holders.