NDTV to sell stake in NDTV Imagine to Turner for $117 million

After selling stake in NDTV Good Times to Scripps Networks, the Prannoy Roy-led TV network is again selling its majority stake in NDTV Imagine to Turner Asia Pacific

Media company New Delhi Television Ltd (NDTV) on Tuesday said that it has entered into a pact with Turner Asia Pacific for selling most of its indirect holding in NDTV Imagine for $117 million (about Rs546 crore), reports PTI.

As part of the agreement, NDTV, through its subsidiary NDTV Networks Plc, will sell 76% of NDTV Imagine for $67 million, plus a fresh issue of equity shares worth $50 million to Turner, NDTV said in a filing to the Bombay Stock Exchange.

NDTV Networks will retain a 5% stake in the channel before the issue of fresh shares, it said. The deal is subject to approval of Turner Asia Pacific Venture\'s parent firm Time Warner Inc and other regulatory authorities, the filing added.

Last month the media conglomerate had said that it would sell 69% stake in its lifestyle programming subsidiary NDTV Lifestyle, which runs the lifestyle channel NDTV Good Times, to US based Scripps Networks for $55 million.

Over the last four years, NDTV’s standalone revenues have grown at a compound annual growth rate (CAGR) of 19.3% from Rs1,500 crore in FY05 to Rs3,100 crore in FY09, though the company reported a standalone proforma net loss of Rs73.20 crore in FY09, as against a standalone proforma net profit of Rs2.90 crore in FY05. The decline in the company’s profitability was primarily due to start-up costs incurred towards NDTV Profit in FY05 to FY07, as well as weak revenue growth and higher operational cost in FY09, due to the economic downturn.

In FY09, the company posted a consolidated proforma net loss of Rs500 crore, mainly due to launching of five broadcasting properties, including NDTV Imagine, which entailed heavy investment in the initial years in the form of operating cost.

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    2010 will be a tough: Credit Suisse

    After a spectacular year and one of the greatest rallies in the history of the equity markets stocks are now arguably oversold, overvalued and on borrowed time. In terms of their macro 2010 outlook Credit Suisse (CS) sees 4.1% global GDP (3.3% in the U.S.) and muted inflation.  They are quite positive about the first half of 2010, however.  They target 1220 on the S&P by mid-year and 5750 on the FTSE.  However, CS is increasingly concerned about a government funding crisis that eliminates all market gains in H2 of 2010 and sends markets’ reeling again as the problem of debt, once again rears its ugly head.

    Read Article

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    BSE's Q2 revenues up Rs140.50 crore; net declines marginally

    The exchange, which is gearing up for its listing, posted higher average daily turnover during the second quarter

    The Bombay Stock Exchange (BSE), Asia's oldest stock exchange, has said that its second quarter net profit declined marginally despite a 35% jump in total revenues. According to media reports, BSE is preparing for a listing and expects to cut its dependence on revenues from cash trading over the next two years.

    For the quarter to end-September, BSE said its net profit declined 4% to Rs55.50 crore from Rs57.80 crore while total revenues rose to Rs140.50 crore from Rs103.60 crore, for the same period last year.

    For the first half of FY10, the exchange's total revenues increased to Rs256.20 crore. During FY09, BSE reported total revenues of Rs421.10 crore.

    BSE said that during the second quarter, its average daily turnover rose to Rs6,024 core from Rs5,186 crore a year ago.

    Revenues from BSE's trading members scaled up to Rs39 crore during the September quarter which in the corresponding previous quarter stood at Rs35.40 crore.

    The Exchange spent more on IT-related expenses as its expenditure on computer technology more than doubled to Rs21.80 crore from Rs10.80 crore last year in the same quarter. The earnings per share for the quarter stood at Rs4.70 as against Rs5.37 last year.

    During the second quarter, the Exchange's paid-up share capital stood at Rs10.30 crore as against Rs0.80 crore a year ago. The reserves of the Exchange stand at Rs1,717.95 crore as on March 2009.

    The exchange, which earns almost all its revenue on the trading side from the cash equity market, is looking to win over investors by offering better technology and products across asset classes.

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