With its operating and administrative expenses increasing by 27 per cent, news broadcaster and media company NDTV today posted a consolidated net loss of Rs 160.30 crore for the quarter ended March 31, 2009, as against a consolidated net loss of Rs 117.4 crore in the same period of the previous year.
However, in Q4, NDTV’s consolidated revenue increased marginally to Rs 123.3 crore as opposed to Rs 122.21 crore in the same period a year ago.
There was 27 per cent increase in operating and administrative expenses to Rs 52.82 crore in the fourth quarter as opposed to Rs 41.56 crore in the comparable period of last year.
In Q4, NDTV’s standalone revenue declined to Rs 84.13 crore compared to Rs 90.54 crore, while its operating and administrative expenses grew by over 114 per cent to Rs 42.62 crore as against Rs 19.85 crore.
But for the fiscal 2008-09, NDTV posted a consolidated net profit of Rs 119.84 crore compared with financial year 2007-08 when it had a net loss of Rs 185.66 crore. “The FY09 net profit includes amounts arising on dilution of stake in a subsidiary during the course of the year,” said a company statement.
“The company’s consolidated revenue for the year touched Rs 492.32 crore, compared with Rs 366.13 crore in the previous year, a growth of 34 per cent year-on-year,” the statement said.
NDTV said that in the face of economic slowdown in global and Indian economies (which has hit advertising expenditure severely), it has taken a number of steps to reduce costs and increase revenues.
“The measures include making the operations more efficient which should reflect in cash reduction in several cost heads in the near future. Moreover, as a result of manpower planning and right-sizing, the costs and number of personnel at NDTV are targeted to be down by over 20 per cent in the immediate term,” the company statement said. The management of NDTV was totally focused on cost reductions and improved efficiency which should begin to reflect in the financial results from the next quarter and thereafter, it said.