HT Media today said its radio business has incurred “substantial losses since inception” mainly due to low advertisement revenue and accordingly, has sought shareholders’ approval for writing off part of the share capital.
As per the directive of the High Court of Delhi, its shareholders would meet on January 28 to consider the demerger of its radio business from its subsidiary HT Music and Entertainment Company and merge it with itself, HT Media said in a filing to the BSE.
“The radio business of the demerged frim has incurred substantial losses since inception on account of low advertisement revenue, high brand-building cost, delay in availability of common infrastructure resulting in substantial investment in transmission facilities for Delhi and Mumbai stations... All of which have resulted in erosion of its share capital,” HT Media said.