MUMBAI: BAG Films? television broadcasting business has turned profitable on a more than 100 per cent rise in revenues from a year earlier. In the second quarter ended 30 September, the company?s broadcasting business made an operating profit of Rs 87.8 million against operating loss of Rs 18.67 million a year earlier.

The company, which runs News 24 and E24 channels, saw its revenue from television broadcasting rise to Rs 251.3 million from Rs 124.5 million a year earlier.

The company?s television broadcasting business had reported operational loss of Rs 66.19 million in the first quarter ended 30 June. For the first six months of this year, it had an operational profit of Rs 21.60 million against operational loss of Rs 31.38 million a year earlier.

BAG?s operating profit from radio business fell 90 per cent to Rs 1.25 million in the second quarter from Rs 13.14 million a year ago as revenue stayed flat at Rs 18.1 million against Rs 18.3 million a year earlier.

Its audio-visual production business also turned operationally profitable with a profit of Rs 20.68 million against operational loss of Rs 20.7 million a year earlier. Its revenue from the production business jumped three fold to Rs 89.9 million in the second quarter from Rs 29 million a year earlier.

On a consolidated basis, BAG Films? reported a net profit of Rs 56.18 million in the second quarter against a loss of Rs 66.53 million a year earlier. Its revenues from operations almost doubled to Rs 361.3 million from Rs 171.9 million a year earlier. The company?s total expenses were up about 14 per cent to Rs 336.4 million in the second quarter from Rs 295.8 million a year earlier.

MUMBAI: The fiscal ended 31 March 2012 has been good for BAG Films and Media, the company that owns and operates Hindi news channel News24 and Bollywood channel E24 apart from FM radio brand Dhamaal24 and TV production business.

E24 has achieved operational break even for the first time, posting a cash profit of Rs 13 million.

Also, for the first time the company?s turnover has crossed the Rs 1 billion mark on a consolidated basis. Revenue grew 55 per cent to Rs 1.17 billion, from Rs 751.93 million in FY?11.

Bag Films is expecting News24 to be cash positive by the end of this fiscal.

?E24 has broken even for the fiscal with a cash profit of Rs 13 million. We expect News24 to also break even this fiscal. The bottom line of the company?s TV broadcasting business is in losses because of distribution expenses,? a senior executive of the company said.

Total income from the TV business stood at Rs 700.91 million, compared to Rs 510.12 million in the previous fiscal. Loss stood at Rs 65.52 million, down from Rs 91.41 million in the previous fiscal.

Meanwhile, the radio business of the company continued to be profitable. Dhamaal24 reported a cash profit of Rs 39.4 million, while revenue stood at Rs 113.1 million.

On a consolidated basis, BAG Films? net loss stood at Rs 69.79 million, compared to a net loss of Rs 265.93 million in the previous fiscal.

Compared to a 55.11 per cent jump in the revenue, expenses during the fiscal also rose 24 per cent to Rs 1.44 billion (from Rs 1.16 billion in FY?11).

The audio visual production business posted segment reported a profit of Rs 95.35 million, compared to a loss of Rs 33.40 million in the previous fiscal. Revenue during the fiscal stood at Rs 362.25 million, from Rs 134.34 million a year ago.

MUMBAI: BAG Films & Media will hold a majority stake in a television and film production company floated by Saurabh Tewari.

"The deal is being structured. BAG Films will take a 51 per cent stake in the new production company," a source familiar with the development said.

BAG Films will infuse the capital over a period of two years, the source added.

Tewari‘s new venture, Nautanki Films, has already firmed up plans for two film projects that are set to go on floors early next year.

BAG Films & Media CMD Anurradha Prasad and Tewari could not be contacted for their comments.

"BAG Films has spread out into broadcasting and content production. By acquiring stake in the startup, it will seek to scale up its content business through a focused approach," a media analyst said.

Tewari worked in Imagine TV, the Hindi general entertainment channel which Turner acquired from NDTV, as fiction head. He has been behind unconventional shows like Gunahon Ka Devta, Chandragupt Maurya, Baba Aiso Varr Dhoondo, Preeto, Dwarkadheesh (Imagine TV) and Uttaran, Balika Vadhu, Laagi Tujhse Lagan, Bhagyavidhata (Colors).

"The production business is highly fragmented and margins are squeezed. But with more channels getting launched, there is scope to work on volumes," said a media tracker who works in a broking firm.