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| Network18 re-structures Business News - CNBC TV18 and CNBC AWAAZ to merge |
| Announcement / Corporate Nov 20, 2009, 19:12 IST |
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Both Channels to Maintain Distinct Identities.
Operational restructuring to synchronize with retirement of debt - Move slated to create the country’s single largest business news infrastructure and deliver cost advantages estimated at Rs 65 cr. annually to TV18, a Network 18 Group company.
Network18, the country’s leading media conglomerate is re-organizing the business broadcast operations of TV18, a Group company. Television Eighteen runs CNBC TV18 and CNBC AWAAZ, the country’s premier business news channels. While CNBC TV18 has continued its stellar leadership position in the business news space with a dominant share of the market, CNBC AWAAZ has led from the front in expanding business audiences in the country apart from drawing in the maximum number of viewers from the business news category. The decision to merge the logistics, back-end and broadcast operations of the two channels coincides with the completion of 10 years of CNBC TV18 and 5 years of CNBC AWAAZ, as stand-alone operations. For purposes of express clarity, it is reiterated that both the channels will continue to maintain their distinct identities – only some of the over-lapping and common operations at the back-end are being merged. The company expects to optimize approximately 20% in annual operating costs via this restructuring.
This move follows the commitment under the TV18 rights offer to shareholders, viz the repayment of more than Rs 300 crores of debt. The savings on interest and operational costs will lead to total reduction of approximately Rs 65 crores in annual costs.
Both moves will help the company return to better operating margins and profitability.
The restructuring will also create the country’s largest business news infrastructure spread across 8 business bureaus and two broadcast hubs (Mumbai and Delhi).This move will realize significant cost synergies between the operations, and about 12% permanent positions in the Company would be rendered surplus. The Company will take a one-time extraordinary restructuring charge in the current quarter, and the synergies are likely to result in savings from the next quarter.
Haresh Chawla, Group CEO of Network 18 said – “CNBC TV18 and CNBC AWAAZ have independently carved out a loyal niche for themselves and are undisputed leaders in the English and Hindi business news spaces. The two channels command a lion’s share of the business news category, despite the onslaught of new offerings in the space. It is our belief that the next stage of growth and profitability of our business news operations will come from a more synergistic entity that combines the strength of two powerful and complementary brands. TV18 has already embarked on a path to financial restructuring as mentioned in the rights issue offer. Both these moves put together will make TV18 more robust in operating as well as financial terms.”
About Network18
Network18[BSE: 532798,NSE: Network18] is one of India's leading full play media conglomerates with interests in television, print, internet, filmed entertainment, mobile content and allied businesses. Through its holding in Television Eighteen India Ltd (TV18) [BSE: 532299, NSE: TV-18], Network18 operates India’s leading business news television channels, CNBC-TV18 and CNBC Awaaz. It also runs one of India’s largest Internet players - Web18, as well as one of India’s leading real time financial information and news terminals - Newswire18. TV18 has expanded into print with Infomedia18, an entity following the acquisition of Infomedia, India's leading player in the special interest publishing and printing operations space. Through its holding in ibn18 Broadcast Ltd (ibn18) [BSE: 532800,NSE: ibn18], Network18 operates in the general news and entertainment space with leading general news channels CNN-IBN and IBN7 and has launched IBN Lokmat, a Marathi news channel in partnership with the Lokmat group. ibn18 also operates a joint venture with Viacom, called Viacom18 which houses the MTV, VH1 and Nickelodeon channels in India - as also Studio18, the Group’s filmed entertainment operation and ‘Colors’, the country’s leading Hindi general entertainment channel. Additionally, Network18 holds the Group’s online & on-air home shopping venture, Homeshop18, its full spectrum events management venture, E18 and its sports management & marketing division, Sports18. In a pioneering foray, the group recently launched Forbes India, the nation's first local edition of a foreign news magazine title and the world’s most influential business brand, in collaboration with Forbes Media.
About TVI8
Television Eighteen India Ltd (TV18) [BSE: 532299, NSE: TV18] operates India’s leading business news television channels, CNBC-TV18 and CNBC Awaaz. It also runs one of India’s largest Internet players - Web18, as well as one of India’s leading real time financial information and news terminals - Newswire18. TV18 has also forayed into print & publishing with the acquisition of Infomedia, rechristened as Infomedia18. Infomedia18 is India’s leading special interest publishing, directories and printing operations player
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