Televisionpoint.com Correspondent | Mumbai NDTV Ltd has announced its second quarter financial results for the year ended 2008-2009. The company has earned consolidated revenues of Rs 128 crore during the quarter, as compared to Rs 77.5 crore in the same period last year.
Dr. Prannoy Roy, chairman, NDTV Ltd, said, "We believe in the current market scenario staying out of debt and having adequate cash reserves is critical. In an increasingly competitive environment, NDTV has maintained leadership in English news and grown in revenue. NDTV Profit maintained its market share, despite more competition in the segment."
On account of entertainment side of business being in its early growth phase, the company has incurred a net loss of Rs 119 crore in the Q2. However, the company has a cash balance of Rs 660 crore in the holding company NDTV Ltd available for expansion.
"We expect some amount of consolidation going forward in the news coupled with a slowdown in advertisement revenue growth linked to the macro environment. The company has embarked on a cost cutting and rationalization exercise in its news operations." Roy says.
"There is considerable churning in the GEC space in the channel positions changing rapidly. The traditional leaders have witnessed a significant drop in ratings. Consequently, the market is now shifting from the earlier structure of a dominant player with a distinctly high rating to many players having ratings in the similar broad range." Roy adds.
During the quarter, the board has decided to split NDTV into two groups of companies - one group of companies will carry out 'news and other businesses' and the other group of companies will carry out 'entertainment and specified allied businesses'.
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