Television Eighteen by XIbuLw

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									Television Eighteen Group
Investor Update Q1 FY 2007-08



 NETWORK18's BUSINESS UNITS REPORT SURGE IN REVENUES:
 CNBC-TV18/AWAAZ UP 44%; CNN-IBN UP 135%; WEB18 UP 81%;
                     IBN7 UP 350%

             BUSINESS NEWS’ OPERATING PROFIT UP 56%
                (YoY over Recast Q1 of Previous Year)

  CNN-IBN MAINTAINS CONSISTENT MARKET LEADERSHIP OVER
                 NDTV 24X7 AND TIMES NOW

         IBN7 IS CONSISTENTLY AHEAD OF NDTV INDIA AND
                           ZEE NEWS

  WEB18 COMMENCES CONVERSION TO US GAAP; INVESTMENT
    LOSSES MINIMISED BY STRONG REVENUES OF EXISTING
                        PORTALS




 Other Highlights:

       Newswire18's revenues surged more than 70% on a QoQ basis; over
        1000 terminals installed in “free trial” phase – the number of terminals
        under full billing are ahead of the Business Plan.

       TV18 reports an Extra-ordinary Income of Rs 35.86 mn on account of
        hedged foreign currency liabilities as well as derivative transactions on
        INR debt to reduce cost of debt - income is excluded from the Operating
        Numbers above.

       Network18 reports a Non-recurring Income of Rs 34.16 mn on account
        of the transfer of 14 films to The Indian Film Company - income is
        excluded from the Operating Numbers above.
Financial Highlights:

Television Eighteen India Limited

Business News Operations

   Versus Q1 2006-07 (Previous year):
    Revenues Rs 579.23 mn UP 44% YOY
    Operating profit improves to Rs 200.07 mn from Rs 128.12 mn YOY

Web 18

Internet and Software Operations

   Versus Q4 2005-06 (Previous year):
    Revenues Rs 93.41 mn UP 81% YOY
    Operating loss at Rs 23.58 mn

Newswire18
   Revenue s- Rs 8.93 mn
   Operation Loss Rs 42.19 mn

Global Broadcast News Limited

      Revenues - Rs 233.08 mn up 135% YOY
      Operating Profit at Rs 6.7 mn

Network 18

      Revenues – Rs 966.47 mn
      Operating Profit – Rs 84.21 mn
Operational Highlights :

     TV18 Network received 18 News Television Awards; more than any other
      network in India. CNN-IBN received the award for Best English News Channel.
     Business News Operations maintained their number one position in the genre.
      CNBC-TV18 and CNBC-Awaaz together lead the Business News genre with over
      2/3rd market share.

     Ibnlive.com relaunched on web2.0 platform, the first Indian news website to do
      so.
     CNN-IBN was the true leader in all relevant markets of English General News.
     IBN7 established itself among the best Hindi News Channels.

     Moneycontrol.com received more page views per million than wsj.com almost for
      the entire quarter.

     Studio18, a division of Network 18, released movies in domestic and international
      theaters. Entered into a special relationship with TIFC – a £ 55 mn fund listed on
      AIM of London Stock Exchange.
     Homeshop18 built the capacity to reach over 2000 towns in India and served
      customers in 1600 towns.
         Television Eighteen India Limited Consolidated Financial Performance
         (Unaudited Consolidated) for the quarter ended 30th June 2007


 Part I News Operations                                                         Rs. mn.

 Particulars                                                        Q1 2007-08 Q1 2006-07


 Revenue - News Operations                                           579.23     402.12

 Operating Expense                                                   379.16     274.00
 Operating Profit                                                    200.07     128.12
 Operating Margin                                                    34.54%     31.86%

 Extra-ordinary Income (on foreign currency hedge &
 INR debt derivatives)                                                35.86       0.00

 Net Outflow on Revenue Share with CNBC                               (30.67)    (14.10)
 Interest/Income from Investments                                      61.88      19.42
 Interest Expense                                                     (82.45)    (39.80)
 Interest (Net)                                                       (20.56)    (20.38)
 Depreciation                                                         (52.64)    (37.75)


 Total Profit Before Tax, Minority Interest
 and ESOP Charge Out                                                 132.06     55.89
 Provision for Current Tax/FBT                                         8.15       2.00

 Profits after tax (before minority interest and ESOP charge out)     123.91     53.89
 Minority Interest
 Profits after tax and minority interest
 (before ESOP charge out)                                             123.91     53.89
 ESOP charge out                                                       47.72     17.03
 Profits after tax and ESOP charge out                                76.19      36.86
 Exchange Fluctuations                                                  3.80     (3.48)
 Profits after Exchange Fluctuations                                   79.99     33.38
 Provision for Deferred tax
 Net Profit after Deferred Tax                                        79.99       33.38
 Paid up Equity Share Capital                                         282.80     210.43
 EPS (Rs.) without ESOP charge out                                     2.19       2.56
 EPS (Rs.) with ESOP charge out                                        1.41       1.59


*Revenues of Internet and Software Operations and Newswire18 are given on the following pages.
        Television Eighteen India Limited Consolidated Financial Performance
        (Unaudited Consolidated) for the quarter ended 30th June 2007

Part II Internet and Software Operations                                   Rs. mn.


Particulars                                                  Q1 2007-08 Q1 2006-07


Revenue Internet and Software Operations                       93.41       51.54

Operating Expense                                               116.99      23.79
Operating Profit                                                (23.58)     27.75
Operating Margin                                               -25.24%     53.84%


Interest/Income from Investments                                 1.22          0.07
Interest Expense                                                (1.44)         0.00
Interest (Net)                                                  (0.23)         0.07
Depreciation                                                     5.09          0.57


Total Profit before Tax, Minority Interest                     (28.89)     27.25
Provision for Current Tax/FBT                                     0.45          0.04
Profits after tax                                               (29.34)        27.21
Minority Interest                                                (3.81)         5.92
Profits after tax and minority interest                        (25.53)         21.29
Exchange Fluctuations                                             0.00          0.00
Profits after Exchange Fluctuations                             (25.53)        21.29
Provision for Deferred tax                                        0.00          0.00
Net Profit after Deferred Tax                                   (25.53)        21.29
Television Eighteen India Limited Consolidated Financial Performance
(Unaudited Consolidated) for the quarter ended 30th June 2007

Part III Newswire18                                                Rs mn
                                                                   .

                                                             Q1 2007-08
Particulars

Revenue From Operations                                         8.93

Operating Expense                                               51.12
Operating Profit                                               (42.19)
Operating Margin                                               -472%


Interest/Income from Investments                                 0.00
Interest Expense                                                (3.48)
Interest (Net)                                                  (3.48)
Depreciation                                                     4.25


Total Profit before Tax, Minority Interest and
ESOP Charge Out                                                (49.92)
Provision for Current Tax/FBT                                     0.00
Profits after tax                                               (49.92)
Minority Interest                                                 0.00
Profits after tax and minority interest                        (49.92)
Exchange Fluctuations                                            0.00
Profits after Exchange Fluctuations                            (49.92)
Provision for Deferred tax                                       0.00
Net Profit after Deferred Tax                                  (49.92)
       The Hon’ble High Court of Delhi approved the Scheme of Arrangement vide Order dated
       July 20th, 2006. Thus the financial results of Q1 (2006-07) were published without
       revenues and expenses of CNBC-Awaaz. Here is a full RECONCILIATION/RECAST of that
       Quarter’s Financial Performance (including CNBC-Awaaz Revenues/Costs and all other
       Scheme-related adjustments).
                                                                                 Rs mn.

                                      Reported TV18 Consolidated      Recast TV18 Consolidated Q1
                                              Q1 2006-07                       2006-07
                                     News Operations               News Operations
                                     (excluding      Web           (including
Particulars                          CNBC-Awaaz)     Operations     CNBC-Awaz)      Web Operations
Revenue from operations
(excluding other income)                  364.52        51.54          402.12             51.54
Internet
Total Operating Revenue                  364.52         51.54          402.12             51.54
Operating expenses                        178.52         23.79         274.00              23.79
Operating profit                          186.00         27.75         128.13              27.75
Operating margin                          51.03%        53.85%         31.86%             53.85%
Net Outflow on Revenue Share
with CNBC                                 (12.57)                      (14.10)             0.00
Interest/Income from investments           19.42         0.07           19.42              0.07
Interest Expense                          (39.74)                      (39.80)             0.00
Interest (Net)                            (20.32)        0.07          (20.38)             0.07
Depreciation                              (34.21)       (0.57)         (37.75)            (0.57)
Total Profit Before Tax,
Minority Interest and
ESOP Charge Out                          118.90         27.25           55.91             27.25
Provision for Current Tax/FBT              2.00          0.04            2.00              0.04
Profits after tax (before minority
interest and ESOP charge out)             116.90        27.21           53.91             27.21
Minourity Interest                                       5.92           0.00               5.92
Profits after tax and minority
interest (before ESOP charge out)         116.90        21.29           53.91             21.29
ESOP charge out                            17.03                        17.03
Profits after tax and ESOP
charge out                                99.87         21.29           36.88             21.29
Exchange Fluctations                      3.48                          3.48
Profits after exchange flucations         96.39         21.29           33.39             21.29
Provision for Deferred tax
Net Profit after Deferred Tax              96.39        21.29           33.39             21.29
Paid up equity share capital              210.43                       210.43
EPS (Rs.) without ESOP charge
out                                        5.56                          2.56
EPS (Rs.) with ESOP charge out             4.58                          1.59
Global Broadcast News Limited Financial Performance (Unaudited) for the quarter ended
30th June 2007
                                                                  Rs. mn.

                                                  Q1 2007-08   Q1 2006-07

Particulars

Revenue News Operations                            233.08        99.12

Operating Expense                                   226.38       214.26
Operating Profit                                     6.70       (115.14)
Operating Margin                                    2.87%      -116.16%

Net Outflow on Revenue Share with CNN               (11.74)        5.66
Interest/Income from Investments                     10.42         3.11
Interest Expense                                    (24.62)      (12.03)
Interest (Net)                                      (14.20)       (8.92)
Depreciation                                        (13.59)      (12.10)


Total Profit Before Tax,
Minority Interest and ESOP
Charge Out                                         (32.83)     (130.50)
Provision for Current Tax/FBT                        2.11         1.58
Profits after tax (before minority interest and
ESOP charge out)                                    (34.94)     (132.08)
Minority Interest
Profits after tax and minority interest
(before ESOP charge out)                           (34.94)      (132.08)
ESOP charge out                                      0.00
Profits after tax and ESOP charge out              (34.94)      (132.08)
Exchange Fluctuations                                 0.10
Profits after Exchange Fluctuations                 (35.04)     (132.08)
Provision for Deferred tax
Net Profit after Deferred Tax                       (35.04)     (132.08)
Paid up Equity Share Capital                        267.28       225.28
EPS (Rs.)                                           (1.31)       (5.86)
Network18 Fincap Limited Consolidated Financial Performance (Unaudited Consolidated)
for the quarter ended 30th June 2007

                                                                            Rs. mn.
Particulars                                                        Q1- 2007-08
Revenue from Operations                                             966.47

Operating Expense                                                    882.26
Operating Profit                                                     84.21
Operating Margin                                                     8.71%

Extra-ordinary Income (on foreign
currency hedge & INR debt derivatives)                                35.86

Non recurring Operational Income (on transfer of 14
films to The Indian Film Company)                                    278.17
Non recurring Operational Expense (WIP of 14 films
transferred)                                                        (244.01)
Net Non recurring Profit                                              34.16

Total Operating profit                                               154.23

Net Outflow on Revenue Share with CNBC & CNN                          (42.41)
Interest/Income from Investments                                       72.31
Interest Expense                                                     (139.07)
Interest (Net)                                                        (66.76)
Depreciation                                                          (76.39)


Total Profit Before Tax, Minority Interest
and ESOP Charge Out                                                 (31.33)
Provision for Current Tax/FBT                                         14.46
Profits after tax (before minority interest and ESOP charge out)     (45.79)
Minority Interest                                                    (14.66)
Profits after tax and minority interest (before ESOP
charge out)                                                          (31.13)
ESOP charge out                                                      (79.17)
Profits after tax and ESOP charge out                               (110.30)
Exchange Fluctuations                                                 (3.70)
Profits after Exchange Fluctuations                                  (106.60)
Provision for Deferred tax
Net Profit after Deferred Tax                                        (106.60)
Paid up Equity Share Capital                                          254.32
EPS (Rs.) without ESOP charge out                                     (0.54)
EPS (Rs.) with ESOP charge out                                        (2.10)
                                                   TV18’s Sequential Growth

         900




         800




         700




         600




         500
Rs mn.




         400




         300




         200




         100




          0
               Q2 04-05   Q3 04-05    Q4 04-05   Q1 05-06      Q2 05-06   Q3 05-06   Q4 05-06   Q1 06-07   Q2 06-07    Q3 06-07        Q4 06-07   Q1 07-08

                                     Total Operating Revenue     Operating expenditure   Operating margin (%age)   Profits after tax
                               TELEVISION EIGHTEEN

Television Eighteen (TV18) operates India’s leading business medium CNBC TV-18 &
India’s first consumer focused business channel CNBC-AWAAZ. The CNBC channels
are the leaders in business broadcasting in the country with a committed and loyal
audience base. CNBC-TV18 & CNBC-AWAAZ are in partnership with NBC
UNIVERSAL, a US 13 bn company and one of the leading global media brands. India’s
progressive business audiences’ consume CNBC-TV18 & CNBC-AWAAZ for all their
information & investing needs. The CNBC channels aim to reflect and facilitate the
business momentum of India and deliver on all the needs of this diversified but highly
enterprising audience.
                 CNBC-TV18 - INDIA’S LEADING BUSINESS MEDIUM

CHANNEL PROMISE & VISION:

CNBC-TV18 is India’s leading business medium. The channel promises to equip its
viewers with the latest and most comprehensive corporate and financial news &
information. CNBC TV18 seeks to empower rather than simply inform its millions of
viewers.   Catering    to   corporates,   market   participants,   professionals,   SME’s,
homemakers and the youth and capturing markets, corporate news, business trends,
policy and lifestyle, the channel delivers a power packed line up of programming that is
analytical as well as insightful.

KEY DEVELOPMENTS IN Q1 FY 08:

The first quarter of the financial year was eventful in many respects. The following were
the key initiatives on the channel.
      NEW PROGRAMMING :In the first quarter, CNBC-TV18 continued to strengthen
       its offering with a slew of new content. This ranged from special interest
       programming with series’ such as ‘Business Legends’, ‘Up Close & Personal’,
       ‘London Eye’ to segments such as ‘Marathon Managers’. Shows on investing
       and markets such as ‘Wizards of Dalal Street’ further added value to the core
       market participant audiences of the channel.
VIEWERSHIP PERFORMANCE:




                  India means business,business means CNBC-TV18
    0.4



   0.35
                                                                                                                                      CNBC TV18


    0.3
                                                                                                                                      NDTV 24x7


   0.25
                                                                                                                                      Times Now


    0.2
                                                                                                                                      NDTV Profit


   0.15
                                                                                                                                      Headlines Today

    0.1
                                                                                                                                      BBC World

   0.05



      0
             CNBC TV18           NDTV 24x7           Times Now           NDTV Profit       Headlines Today        BBC World


Source: TAM Analysis, Channel Share, TG: CS M 25+ AB, Period: 1st April 07 – 23rd June 07, Time : 700-2400, All Days, Market: All India
                 CNBC TV18 – Dominant leadership in market hours
     1


   0.9                                                                                                                                CNBC TV18


   0.8                                                                                                                                NDTV 24X7 &
                                                                                                                                      NDTV Profit

   0.7                                                                                                                                Star Movies


   0.6                                                                                                                                HBO


   0.5                                                                                                                                NDTV 24x7


   0.4                                                                                                                                Times Now


   0.3                                                                                                                                Headlines Today


   0.2                                                                                                                                BBC World


   0.1


     0
          CNBC TV18     NDTV 24X7 &     Star Movies        HBO        NDTV 24x7       Times Now       Headlines      BBC World
                         NDTV Profit                                                                   Today


Source: TAM Analysis, Channel Share, TG: CS M 25+ AB, Period: 1 st April 07 – 23rd June 07, Time : 900-1600, Weekdays, Market: All India
                    CNBC TV18 & CNBC AWAAZ
            Dynamic duo leads the business genre from the front


                                  Ze e Busine ss
                                       10%
          NDTV P ro fit
             22%                                                                                                              C NBC TV18
                                                                                                                                  43%




                               C NBC Awaaz
                                   25%




Source: TAM Analysis, Channel Share, TG: CS M 25+ AB, Period: 1st April 07 – 23rd June 07, Time : 700-2400, Weekdays, Market: All India
                         CNBC AWAAZ - VOICE OF THE INDIAN CONSUMER

CHANNEL PROMISE & VISION:

CNBC AWAAZ is India’s first consumer focused business channel. It seeks to be the
voice of the consuming India and reflect the consumer revolution India is enveloped in.
From investment advice to shopping needs, CNBC AWAAZ traverses the purchasing
need hierarchy. It caters to the new progressive Hindi speaking Indian who is globally
aware, enjoys a high propensity to consume and seeks value in his life. In fact, with its
focus on the consumers, retail investors and small businessmen, the channel has
helped triple India’s business audience three folds from 10 million to over 33 million.
More than 55% of this new business audience has come in through CNBC-AWAAZ.



                                     INDIA MEANS BUSINESS
                                  Growth Story of the Business Genre
        45                                                                                                       43.5



        40



        35



        30



        25



        20



        15


                                              10
        10



         5



         0
                                 Monthly average Oct to Dec 04                                       Monthly average Jan to Feb 07



 Source: CS 15+ Monthly Reach in Millions of Business genre, 7 am to Midnight, All Days, All India
    CNBC AWAAZ – Creating a new business audience
                                                                   Awaaz
       More than 50% of business audience expansion is due to CNBC Awaaz

         22


         20                                                                                             4


         18                                                                          4

                                                                3
         16
                                                                                                        6
         14
                                                                                     6                              Zee Business
         12                                2
                                                                6
                                                                                                                    NDTV Profit
                      2
         10                                                                                                         CNBC-Awaaz

                                           5
          8           4



          6                                                                                             12
                                                                                    10
                                                                9
          4
                      6                    6

          2


          0
                 Apr05-Aug05          Sep05 - Jan06     February06-June06    July06-November06   Dec06-February07




Source: TAM, Average Monthly TVR (000s), TG: CS 15+ AB, 700-2400, All Days, Market: HSM




KEY DEVELOPMENTS IN Q1 FY 08:

   NEW PROGRAMMING

        Mall Mechanics
        Mall Mechanics was a series aired on CNBC-AWAAZ, which tried to understand
        the functioning of malls as flag bearers of India’s retail revolution and the factors,
        which go into making it a success. The initiative featured case studies,
        walkabouts with leading experts in the retail industry and discussions on the
        future of mall management. It featured retailing stalwarts such as David Fischel,
        Kishore Biyani and others Khud Par Karo Yakeen
          Also in the quarter, CNBC-AWAAZ introduced Khud Par Karo Yakeen, which
          was India’s biggest search for the most promising news talent in the country. The
          process of selecting the winner was filmed in six episodes, starting with 150
          contestants drawn from Mumbai, Delhi, Bangalore, Lucknow and Chandigarh. It
          captured participants' evolution from amateur contender to well-prepared
          competitor.



VIEWERSHIP PERFORMANCE:




            CNBC-AWAAZ – Facilitating the Indian consumer boom
    0.3




   0.25

                                                                                                                                  Awaaz



    0.2




                                                                                                                                  NDTV Profit
   0.15




    0.1

                                                                                                                                  Zee Business


   0.05




      0
                          Awaaz                                NDTV Profit                            Zee Business


Source: TAM Analysis, Channel Share, TG: CS 15+ AB, Period: 1st April 07 – 23rd June 07, Time : 700-2400, All Days, Market: HSM
                 Hindi speaking affluent consumer prefers CNBC AWAAZ
     0.4


   0.35
                                                                                                                                    CNBC Awaaz
     0.3


   0.25

                                                                                                                                    NDTV Profit
     0.2


   0.15

                                                                                                                                    Zee
     0.1                                                                                                                            Business


   0.05


       0
                      CNBC Awaaz                              NDTV Profit                          Zee Business

Source: TAM Analysis, Channel Share, TG: CS M 25+ AB, Period: 1st April 07 – 23rd June 07, Time : 700-2400, All Days, Market: HSM
                                           WEB 18

WEB18, a division of the TV18 Group, is a leading player in the Internet space in India.
It runs moneycontrol.com which in India’s most influential and widely used online
financial and investor platform with more than 5 million users. Apart from this, WEB18
runs commoditiescontrol.com - India’s leading source for authentic and real-time
commodity     information,   ibnlive.com    -   India’s   leading   general   news    portal,
poweryourtrade.com - a paid equity news and information site, easymf.com- a mutual
funds advisory & tracking service, indiaearnings.com - India’s most credible and
exclusive earnings information destination for companies and institutional investors,
tech2.com- a leading personal technology website, cricketnext.com - India’s leading
cricket website, compareindia.com – India’s leading online product comparison
destination. TV18 Group is also a significant stakeholder in Jobstreet India, an e-
recruitment portal, Yatra.com that is a leading provider of online travel services and Big
Tree entertainment, an industry leader in movie & entertainment ticketing.

KEY DEVELOPMENTS IN Q1 FY 08:

On the product side, the focus in this quarter was on improving user experience across
our portals. With this intent, we made the following enhancements:
NEW INITIATIVES:
   MONEYCONTROL.COM - We redesigned and launched the new portfolio in
    www.moneycontrol.com. The new portfolio utility provides higher amount of user
    interactivity while simplifying the whole process of portfolio tracking. This along with
    other enhancements has resulted in an additional 2.5 to 3 million-page views per
    day.
   POWERYOURTRADE.COM - A new communication broadening the user-base and
    appeal of www.poweryourtrade.com was launched. We also signed on new and
    renowned experts resulting in higher number of sign-ups for the PYT service.
   IBNLIVE.COM - www.IBNlive.com was completely revamped and relaunched. The
    focus was on increasing the depth of content and improving site navigation and user
    interactivity. With this relaunch, this is the only web 2.0 news website in the country.
   CRICKETNEXT.COM - www.cricketnext.com also underwent a relaunch – in time for
    the onset of the India cricket season. Many new features like blogging, contests etc.
    have been added on.


                    World’s leading business & financial portal




                          Moneycontrol.com     wsj.com     msn.co.in   ndtv.com

    Source: Alexa




                IBN LIVE – India’s online general news leader




                                             Ibnlive.com   ndtv.com



        Source: Alexa
                                     NEWSWIRE 18

Newswire 18 provides a real-time market data and news for participants in the financial
markets. This is the first of its kind product from an Indian company and is designed to
take on global information majors such as Reuters and Bloomberg. The Newswire 18
news and data platform has all the features & functionalities of a state-of-the-art market
data platform including customizable views and several analytical tools including those
currently available on Moneyline Telerate platform. Unlike global products, the
Newswire 18 platform is oriented to unique Indian customer needs and shall retain its
customisation element in every country and market it launches in.


KEY DEVELOPMENTS IN Q1 FY 08:
The real-time market data and news platform offering of NewsWire18 has stabilized and
has chalked up some serious successes in the market against global competitors.
      NewsWire18 has exceeded its target for the quarter in terms of subscription
       terminals and has subsequently raised the annual target FOR FY2007-08. In
       revenue terms, NewsWire18 is already running at one-third of its break-even
       revenue target. Consequently, the break-even is expected to achieved earlier
       than originally estimated, despite some cost overruns due to general escalation
       in costs--particularly rents and salaries--and recruitment of staff beyond original
       estimates to keep pace with growing business.
      NewsWire18 is poised to launch a retail version of its information terminal for the
       non-institutional segment players and expects to chalk up significant sales in this
       segment. Sales in this segment are likely to help overcome the price pressure on
       the main product arising out of price cuts by competition. The focus for the main
       product continues to be on converting customers of the erstwhile Moneyline
       Telerate and CRISIL Market Wire offering as well as on widening and deepening
       our customer outreach.
                                       NETWORK18


Network18 is the holding company of TV18 and Global Broadcast News Limited. It also
has following profit centers as its own divisions.

                                      HOMESHOP18


The business objective of Homeshop18 is to participate in and leverage the fast
expanding retail opportunity by building a robust and scalable virtual retail business.
Building a credible home shopping network that not just provides the “best in class”
products and services to the consumer but also assists him in taking “well informed
purchases decisions”. A virtual retail service that on one hand will enable the
consumers to take well informed purchase decisions through specially developed
infotainment led TV content, and at the same time an on ground logistics foot print and
a web enabled fulfillment mechanism that will deliver quality, value and convenience to
his doorstep.


KEY DEVELOPMENTS IN Q1 FY 08:
   The company has made good progress towards its goal of building credibility for the
    home shopping category, by partnering with the best brands such as Philips, Kaya,
    Godrej, Yatra.com, Haier Mobile and many more.
   HomeShop18 has also developed a highly robust IT infrastructure as the backbone
    to delivering world-class service experience. HomeShop18’s IT backbone enables
    real time transactions, shipment monitoring as well as vendor settlement. Its current
    Call Center staffing and infrastructure has the capacity to handle transaction volume
    exceeding 3000 every day and is also highly scalable.
   In its journey thus far, HomeShop18 has been able to:
    a. Achieve a customer reach of nearly 1600 towns
    b. Establish a logistics footprint of nearly 2000 towns
    c. Build a unique customer database of over 100,000
    d. Achieve an average vendor to customer doorstep timeframe of 6 days
    e. Control overall customer complaints at less than 1.5%
    f. Operate at a conversion rate of over 30%
    g. Build a strong team of 60+


   It   is   on   the   verge   of   launching   its   full   blown   e-commerce   portal
    www.homeshop18.com some time in the month of August and will follow that up with
    India’s 1st 24 hour television shopping channel sometime in Q3 FY’08. At launch of
    its portal, HomeShop18 will have on board over 3000 products and nearly 50 vendor
    partners and that is expected to multiply in the succeeding months. HomeShop18 is
    also actively engaged in building strategic partnerships to leverage its evolving
    strength in product sourcing to drive transactions through alternative media such as
    catalogue marketing.
                                        STUDIO 18

STUDIO 18 is a 360-degree motion picture division of Network18. It has capabilities in
producing original content, exploiting acquired content as well as in national &
international distribution of films. Studio 18 has launched its own music and home video
label as well. Studio 18 has to its credit the launch of its first motion picture “1971” and
the national and international distribution of movies within the first year of operations.
Studio 18 also in house production and marketing capabilities, its own distribution
offices in Delhi, Mumbai and Chennai for national distribution and offices in New York
and London for international distribution.


KEY DEVELOPMENTS IN Q1 FY 08:
   The Indian Film Company got listed on the Alternative Investment Market (AIM) of
    the London Stock Exchange in June 07 and raised 55 million pounds. Network18
    participated in the venture by investing 10 mn pounds through ordinary shares
    allotted at par.
   Little Zizou has completed production in June 07 and is under going postproduction
    currently. Set in contemporary Bombay, for a global audience, this much-awaited
    title has been written and directed by ace writer Sooni Taraporevala (who has written
    Salaam Bombay!, Mississippi Masala, Such A Long Journey, and most recently The
    Namesake).The internationally celebrated filmmaker Mira Nair (of Salaam Bombay!
    Kama Sutra, The Namesake and Monsoon Wedding fame) is associated with the
    project in a creative capacity.
   Halla Bol –directed by RajKumar Santoshi and a co-production with Sunrise Pictures
    Pvt. Ltd., starring Ajay Devgan, Vidya Balan and Pankaj Kapoor, has also concluded
    filming and is poised for a September 07 release.
   Bhootnath, which is a co-production with B. R. Films, is currently on the last leg of its
    filming. The films stars Amitabh Bacchan in a never-seen-before look along with Juhi
    Chawla and Shahrukh Khan in a guest appearance.
   Studio 18 has set up a fully functional distribution office in the C.P. / Berar circuit,
    this month. The C.P./ Berar territory contributes to 5 % revenue to any domestic
    release. Studio 18 is the first and only corporate to set shop in this region thereby
    able to provide other producers ease of operations and a transparent release.
   For domestic distribution Studio 18 acquired, Awarapan, for the Mumbai and Delhi
    circuits, Tips’ Naqaab and Adlabs' Cash, for distribution in the C. P./ Berar circuit, in
    the past month.
   Studio 18 acquired, N. R. Pachisisa’s , Kya Love Story Hai and Vishesh film’s
    Awarapan for overseas distribution. Besides the US, UK and UAE, Studio 18 has
    released, Awarapan, in as many as 13 other countries such as Indonesia, Spain,
    Norway, Malaysia, Mauritius, Singapore, Fiji, East Africa, South Africa, Philippines,
    Denmark, Sri Lanka and Thailand.
   Joining into the current fray in Bollywood to acquire talent, Studio 18 has signed on
    ace film maker, Priyadarshan, whose recent films include hits such as Hera Pheri,
    Hulchul, Maalamaal Weekly and Garam Masala, for one film, which will commence
    shooting, February, 2009
                         GLOBAL BROADCAST NEWS (GBN)
Global Broadcast News has led the successful core competency expansion for the
TV18 Group from business news into the general news space. GBN operates two of
India’s leading general news brands, CNN-IBN & IBN 7.CNN-IBN is a partnership with
Time Warner, the world’s largest media conglomerate while IBN 7, a leading Hindi
general news channel is in partnership with the Jagran Group, owners of India’s largest
Hindi language daily. CNN-IBN & IBN 7 embody the spirit of unflinching journalistic
integrity and a promise to deliver the latest news in the best manner possible, as it
happens.


                 CNN-IBN - INDIA’S NO.1 ENGLISH NEWS CHANNEL
CHANNEL PROMISE & VISION:
CNN-IBN has been a watershed in Indian journalism in recent times. The channel has
led from the front in espousing values of uncompromising commitment to pursuing the
truth against all odds and at all times. It is epitomized by the values of ‘Whatever it
takes’ that underline the channel’s philosophy. CNN-IBN has also pioneered the trend of
inclusive journalism in the country by being a voice and mirror of the common citizens.


KEY INITIATIVES IN Q1 FY 08:
EDITORIAL & MAKETING TIE-UPS
Battle for U.P
CNN-IBN and The Indian Express joined hands to cover UP elections. ‘Battle for U.P’ a
special series, included live debates, exit poll, projections after each phase of polling,
post-poll surveys.


Your President
CNN-IBN joined hands with The Express Group for the first ever opinion poll that sought
direct response from elected representatives on the issue of the next President of India.
Viewers also voted via e-mail, ibnlive.com & SMS, voicing their choice for the next
President. Telecast: Mid May
Eye on Goa
CNN-IBN in collaboration with Gomantak Times and Gomantak initiated a two-week
long special series – ‘Eye on Goa’ focusing on upcoming assembly elections and the
social, economic & political issues in Goa.


Campus Calling
CNN-IBN with Outlook launched a month-long reality series to help students seeking
University admissions. A survey reviling top colleges in the country was also
announced. 4 toppers and 4 average scorers from metros were tracked through the
admission process and their experience shared with viewers.


Lal Salaam at 30
The Left led government in West Bengal completed 30 years of rule on June 21 st 2007.
Marking the occasion CNN-IBN joined hands with The Telegraph and launched a series
of programming around West Bengal & Left’s rule.


VIEWERSHIP PERFORMANCE:




                             CNN IBN – Loyalty across audiences
     0.4


    0.35


     0.3                                                                                                                  CNN IBN

    0.25


     0.2
                                                                                                                          NDTV 24x7

    0.15


     0.1
                                                                                                                          Times Now
    0.05


        0
             CS 15-54         CS 25+        CS 25-54 CS AB 15+             CS M 15-        CS M 25+       CS M 25-
                AB            SEC AB         SEC AB     YRS                 54 AB           SEC AB         54 AB


Source: TAM Analysis, Channel Share, Period: 15th April 07 – 23rd June 07, Time : 700-2400, Weekdays, Market: All India
               CNN IBN – India’s choice for prime time news

  0.35


    0.3

                                                                                                               CNN IBN
  0.25


    0.2                                                                                                        NDTV 24x7


  0.15
                                                                                                               Times Now
    0.1


  0.05                                                                                                         Headlines Today


       0
           CS AB 15+         CS 25+        CS M 25+       CS 15-54        CS 25-54      CS M 15-   CS M 25-
              YRS            SEC AB         SEC AB           AB            SEC AB        54 AB     44 SEC AB

Source: TAM, Channel Share, Period: 15/04/07-23/06/07, 1800-2400, All Days, All India
          IBN 7 – INDIA’S NEXT HINDI NEWS LEADER


          CHANNEL PROMISE & VISION:


          IBN 7 epitomizes the same uncompromising commitment to pursuing the truth against
          all odds and at all times that CNN-IBN stands for. The channel’s programming and
          editorial team are focused on ‘Khabar, Har Keemat Par’, the brand promise of IBN 7.
          IBN 7 reaches out to the Hindi speaking masses of India and provides them a voice for
          their issues, insights in their news and above all complete editorial integrity.
          VIEWERSHIP PERFORMANCE:




                                     IBN 7 – Sustained growth since rebranding
16%




14%
                                                                                                                                                                                                                                                                                                               14%
                                                                                                                                                                                                                                                                     13%                                             13%
                                                                                                                                                                                                                                                                                                                   13%   13%
                                                                                                                                                                                                                                                                13%       13%                                    13%   13%
                                                                                                                                                                                                                                                         12%  12%                                                           12%
12%
                                                                                                                                                                                                                                                                  12%    12%
                                                                                                                                                                                                                                                          11%     11%
                                                                                     11%                             11%                                                                                                                                                 11%                                                                11%
                                                                                   11%                                                                                                                                                               11%
                                                                       10%
                                                                         10%                                                                                                                                                      10%
                                                                                                                                                                                                                                    10%                10%
10%                                                                                            10%                                                                                                                                                 10%
                                                              10%                                            9%                                                                                                                 10%
                                                                                                                       9%9%                                                                         9%                                      9%
                                                            9%                                                                                 9%    9%
                                                                                                                                          9%                                                                                              9%
                            8% 9%                                                 9%                    9%                      9%9%
                                                                                                                                             8%  8%8%                       9%                                     9%
                   8%                                                                                                                   8%                                                           8%
8%                   8%              8%        8%                                                                                                                          8%
              8%                                                                                                                                                                                                  8%
                                              7%                                                                                                                                           7%
                                                                                                                                                                                         7%

6%




4%




2%




0%
                                                                                       9-Jul

                                                                                               23-Jul
                                                              11-Jun

                                                                         25-Jun




                                                                                                                                                                                                                                  7-Jan

                                                                                                                                                                                                                                          21-Jan




                                                                                                                                                                                                                                                                                                                                   10-Jun
                                                                                                                                                 1-Oct

                                                                                                                                                         15-Oct

                                                                                                                                                                  29-Oct




                                                                                                                                                                                                                                                   4-Feb

                                                                                                                                                                                                                                                           18-Feb

                                                                                                                                                                                                                                                                    4-Mar

                                                                                                                                                                                                                                                                            18-Mar
                                     14-May

                                                   28-May




                                                                                                                                                                                12-Nov

                                                                                                                                                                                           26-Nov

                                                                                                                                                                                                         10-Dec

                                                                                                                                                                                                                       24-Dec




                                                                                                                                                                                                                                                                                                                 13-May

                                                                                                                                                                                                                                                                                                                          27-May
                                                                                                                                        17-Sep
                                                                                                                                3-Sep
                                                                                                             6-Aug

                                                                                                                       20-Aug
      2-Apr

                   16-Apr

                            30-Apr




                                                                                                                                                                                                                                                                                     1-Apr

                                                                                                                                                                                                                                                                                             15-Apr

                                                                                                                                                                                                                                                                                                      29-Apr




                                     Channel 7                                                                                                                                                                                    IBN7
Source: TAM, 15+ C&S, HSM, 0700-2400 hrs
                       IBN 7 – On the leadership momentum…
   14000

                                                                                                                                      IBN 7
   12000

                                                                                                                                      NDTV India
   10000


     8000                                                                                                                             Zee News


     6000                                                                                                                             Sahara Samay
                                                                                                                                      National

     4000
                                                                                                                                      DD News

     2000


          0
                     IBN 7           NDTV India                  Zee News                Sahara Samay            DD News
                                                                                           National
Source: TAM Analysis, Avg. Weekly Reach (000s), Period:   1st   April 07 –   23rd   June 07, Time : 700-2400, All Days, Market: HSM




                CNN IBN and IBN7 – General News leaders…
    1.4


    1.2


      1                                                                                                                                         CNN IBN &
                                                                                                                                                IBN 7

    0.8


    0.6


    0.4                                                                                                                                         NDTV 24X7
                                                                                                                                                & NDTV
                                                                                                                                                INDIA
    0.2


      0
              CS AB 15+      CS 25+ SEC         CS 15-44               CS 15-54               CS 25-54        CS M 15-54 CS M 25-54
                 YRS             AB                AB                     AB                   SEC AB             AB         AB

 Source: TAM Analysis, Channel Share, Period: 1 st April 07 – 23rd June 07, Time : 700-2400, Weekdays, Market: All India
                                                 VIACOM 18


The TV18 Group announced its entry in the general entertainment space through a
50:50 joint venture with Viacom, a leading US media conglomerate. It is the intention
that GBN, as the general broadcast arm of the TV18 Group, will, subject to regulatory
approvals, house the Group’s investment in the JV. VIACOM in India operates 3
channels in the music & lifestyle and kinds genre namely MTV, VH1 and
NICKLODEON. This new venture has been christened as VIACOM 18 and marks a
strong foray of the group into the general entertainment category in the Indian media
market.


Investor Communication

TV18’s ongoing investor communication endeavors to adopt best international practices
and the company’s quarterly investor updates are designed to regularly provide detailed
information to investors. Each update covers information pertaining to the reporting
period under review. If you would like to get a sequential and continued perspective on
the company this report should be read along with the updates sent out earlier. The
previous updates can be accessed on request from the contact person mentioned
below, or from the companies website www.tv18online.com. This update covers the
company’s financial performance for Q1 FY 2007-08.

For further information on Business and Operations contact:
Haresh Chawla, CEO, Television Eighteen
Tel # 022-40019186; Fax # 022-56618984;
e-mail: haresh.chawla@tv18online.com

For further information on financials contact:
R D S Bawa, CFO, Television Eighteen
Tel # 0120-4341717; Fax # 0120-4324110;
e-mail: rds.bawa@tv18online.com

Further information on the company is available on its website www.tv18online.com

								
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