Scatmag.com

February 2018


BUSINESS NEWS


DEN NETWORKS Q3: 2 CR PROFIT

DEN Networks s w u n g into black by reporting a consolidated net profit of ₹ 1.73 crore for the December quarter.

DEN had posted a net loss of ₹ 38.75 crore during the same period of the previous fiscal.

Revenue from operations during Q-3 2017-18 was ₹ 328.22 Crore compared to ₹ 298.83 Crore in the year-ago period.

Subscriptions from phase III and IV markets has increased 10%, yielding 6% increased overall revenue growth from cable subscription, in Q2 2018.

Cable revenue stood at ₹ 312 crore, up 15%. Cable EBITDA was ₹ 82 crore, up from ₹ 53 crore in Q3 2017, led by subscription growth and rationalisation of costs.

Broadband added 10,000 new subscribers in the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion.

"Den has been able to improve operational performance consistently every quarter with constant focus on increasing t h e subscription collections on the g r o u n d with a m u c h - controlled cost base," Den Networks CEO S N Sharma said.


JIO BUYS RCOM'S WIRELESS

Reliance Jio Infocomm Ltd (RJio), a subsidiary of Reliance Industries Ltd (RIL), has bought the wireless infrastructure assets of Reliance Communications Ltd (RCom), after a 2 stage bidding process.

RJio will acquire assets under 4 categories: Towers, Optic Fibre Network, Spectrum & MediaConvergence Nodes from RCom and its affiliates.

The acquisition is subject to receipt of requisite approvals from governmental and regulatory authorities, consent from all lenders & release of all encumbrances on the assets.

RCom has separately sold its DTH platform to Panteel.


AIRTEL: INTERNAL TRANSFERS OF DTH & TELEPORTS

In an internal transfer, Bharti Telemedia (DTH) has s h i f t e d 25% equity shares to Airtel's wholly owned subsidiary Nettle Infrastructure Investments. The transaction has been approved by the Bharti Airtel board. The company will receive cash as consideration for the sale. The transaction is a 'related party transaction,' done at arm's length. The stake transfer to Nettle does not include equity to be sold to private equity firm Warburg Pincus.

Bharti Airtel has agreed to sell 20% equity stake in Bharti Telemedia to Warburg Pincus for approximately $350 million.

Bharti Telemedia, which provides DTH service under Airtel Digital TV brand, had a turnover of ₹ 3435.8 crore in FY17 comprising only 6% of Airtel total revenue. The DTH arm had a negative net-worth of ₹ 2782.7 crore.

In a separate matter, Airtel's board has approved the acquisition of balance 5% stake in its subsidiary Indo Teleports (also known as Bharti Teleports) for ₹ 2.3 crore. Bharti Airtel already holds 95% stake in Indo Teleports. The teleport operator's revenue in FY17, FY16, and FY15 had stood at ₹ 31.9 crore, ₹ 28.5 crore, and ₹ 26.9 crore.




GRANT AMALGAMATED INTO HINDUJA

The board of directors of Hinduja Ventures Ltd (HVL) has approved the amalgamation of Grant Investrade Ltd (GIL) into the company. GIL is a wholly owned subsidiary of the company. The appointed date for the Scheme of Amalgamation is 1 October 2017.

The approval has been granted subject to the approval of the National Company Law Tribunal (NCLT) at Mumbai, the approval of the shareholders and other such approvals as may be required.

HVL has business interests in media, real estate, and treasury while GIL is in the business of running channels on cable TV and treasury.

Earlier, GIL housed the headend in the sky (HITS) business of HVL. The HITS business has now been merged with the cable TV business under IndusInd Media and Communications Ltd (IMCL), which is also a subsidiary company.

HVL's revenue from operations in FY17 was ₹ 201.7 crore while the paid-up capital is ₹ 20.55 crore. GIL, whose paid-up capital is ₹ 6.78 crore, had earned revenue of ₹ 22.7 crore in FY17.

The companies believe that the amalgamation will result in better synergy in operations, larger asset base, increase in the net worth of HVL, and reduction in overhead expenses.

Since the transaction falls within the related party transaction no shares will be issued to GIL.


ZEEL DOES WELL

The net profit for Zee Entertainment Enterprises Limited (ZEEL) spurted 28.5% in Q3.

The programming cost for the quarter declined by 4.3 per cent Y-o-Y, but increased 16.3 per cent Q-o-Q

ZEEL reported a 12.1% increase in consolidated revenue in Q3FY17-18.

The income grew from ₹ 16.39 billion in Q3 last year to ₹ 18.38 billion.

However, despite sale of sports business, overall costs increased by 10.7 per cent.

Advertising, publicity and other expenses increased by 50% Y-o-Y on account of brand refresh, 25-year celebration related events and promotion cost associated with movies.



NETWORK 18 PAT: 11.4 CR

Mukesh Ambani controlled Network18 Media & Investments (Network18) reported a marked improvement in its financials for the quarter ended 31 December 2017.

The consolidated revenue (net of revenue from joint ventures and associates) for the company declined marginally by 1.8% yearon- year (YoY) to ₹ 366 Crore.

With lower distribution and business promotion expenses, the company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹ 7.7 Crore as against EBITDA loss of ₹ 13 Crore in Q3 last year.

Due to substantial "Other Income" Profit After Tax (PAT) was ₹ 11.4 Crores, compared to a loss of ₹ 77.8 Crore in the same quarter last year.

Consolidated revenue was ₹ 969 Crore (including JVs) in Q3 FY18, was up 7% YoY. Its growth in the broadcasting business was partially offset by a pullback in the TV shopping business.

Media operations revenue (including a proportionate share of JVs) grew by 7.6% YoY to ₹ 959.5 Crore. Revenue from film production 18.0% YoY to ₹ 153 million. n