NEW DELHI: The Raghav Bahl-promoted Television Eighteen today reported a 42 per cent surge in net profit to Rs. 99.94 million for the quarter ended 30 September, 2005, riding on a strong revenue growth of 55 per cent.
The Q2 revenue stood at Rs. 308.18 million, compared to Rs. 199.05 million in the corresponding period previous year.
The operating profit at Rs. 170.72 million signified an increase of 69 per cent against the same corresponding period last year. The operating margins remained above 55 per cent year-on-year, while the earnings per share during Q2 were at Rs 4.75.
According to Television Eighteen MD Raghav Bahl, "This quarter has been good for all our businesses, with every operation posting a strong sequential and year-on-year growth. While our flagship, CNBC-TV18, generated strong cash flows, our Internet businesses have begun contributing significantly to the bottomline."
In a statement Bahl said, Awaaz, the group's consumer affairs channel, is on track to achieve a cash break-even by next quarter.
"Our restructuring plan has been applauded by the financial community for its shareholder friendly consolidation of all values for TV18 shareholders. And, now we are excited about the prospects of IBN, which will truly make us the leader in the news space in the country," he added.
The statement said that the TV 18 group's co-branded general news channel, CNN iBN, in association with Time Warner Inc's Cable News Network, is all set for launch by the end of 2005. The group also announced a restructuring plan to meet government guidelines for news channels, consolidating all its businesses within the ownership of existing TV18 shareholders.
During July-September period, the Delhi operations hof TV 18 moved into a state-of-the-art 60,000 sq ft broadcast facility in Noida, on the outskirts of the Capital, from where CNN iBN is slated for launch.
The company also allotted 25,53,380 equity shares, at a price of Rs. 235.40, against warrants held by the TV 18 shareholders, adding slightly over Rs. 575 million to the cash reserves of the company. These warrants were allotted on a rights basis in November 2004.
(Rs 45=1 USD)
