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India's Management Styles - DOC


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									Television Eighteen
Investor Update Q1 FY 2005-06

    TV18 posts over 57% Revenue growth; Net Profit Up 29%

     Awaaz becomes India’s fastest growing news channel
                         Q1 Revenues at Rs. 266.10 mn, Up 57% YOY

                       Operating Profit at Rs. 135.37 mn, Up 57% YOY

                          Operating Margin remains above 50% YOY

                            Net Profit at Rs. 80.05 mn*, Up 29% YOY

                                               EPS at Rs 4.37
* excluding Forex gains/losses & deferred tax adjustment

Awaaz (TV18 Group Company Channel) Highlights :

   Awaaz has become India’s fastest growing news channel with average viewership growth in
    excess of 20% week on week for the past two months.
   Revenues this quarter treble over previous quarter to hit approximately Rs. 25 mn
   Operating Costs at approximately Rs. 65 mn leading to a deficit of Rs 40 mn
   Channel moving towards breakeven rapidly.

Other Highlights in the quarter:

TV18 Group completed acquisition of the entire shareholding of CNBC India, the Mauritius
based joint venture between CNBC and TV18. The acquisition was done via the 100%
subsidiary of TV18 in Mauritius - Television Eighteen Mauritius Limited. This marks the
completion of the restructuring process initiated earlier and brings all broadcast assets of the
venture, including library and archival rights under the sole ownership of Television Eighteen
India Limited.
                   Television Eighteen India Limited – Consolidated Financial Performance
                         (Unaudited provisional) for the quarter ended 30th June 2005
                                                                                   (Rs. in mn)

Particulars                          Apr-Jun Q1 2005-06     Apr-Jun Q1 2004-05

Revenue from operations
(excluding other income)

          News operations                   257.31                166.46

          Internet and software              8.79                   2.96
Total Operating Revenue                     266.10                169.42

Operating expenditure                       130.73                 83.05

Operating profit                           135.37                  86.37
Operating margin                           50.87%                  50.98%
Net Outflow on Revenue Share                (10.20)                (7.39)
with CNBC
       Interest/Income from                  9.01                   7.70
       Interest Expense                     (20.57)                (9.69)

Interest (Net)                              (11.56)                (1.99)
        Depreciation and non                (30.05)               (12.50)
        cash expenses
Pre-tax profits (excluding                  83.55                  64.49
exchange fluctuations and
deferred Tax)
           Provision for Income              3.50                   2.40
Profits after tax (excluding                80.05                  62.09
exchange fluctuations and
Deferred Tax)
        Profit/Loss on Exchange             (0.20)                  1.03
           Provision for Deferred            0.00                  (0.70)
Profits after tax (including                79.85                  62.42
exchange fluctuationsand
deferred Tax)
Paid up equity share capital                183.01                155.26

EPS (Rs.) (excluding exchange                4.37                   4.00
fluctuationsand deferred Tax)



Rs mn.




               Q1 02- Q2 02- Q3 02- Q4 02- Q1 03- Q2 03- Q3 03- Q4 03- Q1 04- Q2 04- Q3 04- Q4 04- Q1 05-
                03     03     03     03     04     04     04     04     05     05     05     05     06


                  Total Operating Revenue    Operating expenditure    Operating margin     Profits after tax
TV18: On the threshold of becoming
India’s number 1 news network
An Update

TV18 Group, India’s number 1 business and consumer network has, in the past few
months demonstrated its ability to scale up and attract the best talent in the news
business. Besides successfully retaining leadership position by a significant margin
despite a spate of business channels being launched, the TV18 Group has been able to
make its foray into the general news space with the induction of Rajdeep Sardesai,
Sameer Manchanda and others as part of its ambition to become the leading player in
the news space; spanning every possible news genre; from business news to consumer
news to general news.

CNBC TV18 continues to be the leader in English as well as business news in India
(Please see chart below)

                        Market share of English news viewership
       40       35                 April 05 to July 05



                                                        8            6
            CNBC TV18     NDTV 24x7    NDTV Profit   Headlines   BBC World       CNN

Source: TAM, 3/4/05 to 16/7/05, TG: CS Male SEC AB 25yrs+, All India, Weekdays 7am to midnight
Awaaz – Continuing the blazing growth story.

Awaaz, India’s first consumer channel continues to grow at a 37% compounded
monthly growth rate, making it one of fastest growing channels in television history.
                                 Source: TAM, TG: CS 15yrs+, Hindi Speaking Markets

                                 Share of viewership trends

                         Feb- Mar- Apr- May- Jun-                    Jul-
                          05   05   05   05   05                     05

Awaaz is now three times bigger than NDTV profit
Source: TAM, TG: CS Men and Women SEC AB 15yrs+, Hindi Speaking Markets, All days 7am to midnight

                                           Awaaz share of viewership
                                        19th June 2005 to 25th June 2005

                          0.35        0.31

                          0.15                            0.11
                          0.10                                                 0.06

                                     Aw aaz            NDTV Profit          Zee Business
CNBC TV18 Update

CNBC TV18 continues to be the medium of choice for India’s decision makers, affluent
audiences across the country. In the coming months, a host of new shows have been
lined up which will take CNBC TV18s influence and popularity to greater heights.

Power Turks – A unique show that brings together two of the biggest business leaders
of our times in a unique, free-flowing show format. The shows see the likes of N R
Narayana Murthy, Nandan Nilekani, Kiran Mazumdar Shaw, Shanti Ekambaram, Vijay
Mallya, Gautam Singhania amongst others dialogue with each other. The show has been
hosted by Sheeren Bhan

Visionaries of Dalal Street (Gen Next) – After the immensely successful run of
Ramesh Damani hosted shows like Wizards of Dalal Street and Wizards of Dalal Street –
Gen Next, the latest in the series profiles doyens of the Indian equity market; Uday
Kotak, Hemendra Kothari, Nimesh Kampani dialogue with Ramesh Damani in the third
series aptly titled Visionaries of Dalal Street.

Investor Camps continue to roll out successfully - One of the first and biggest
investor oriented direct contact programs, where experts interact with investors
directly; these have been held in Pune, Kochi, Ahmedabad in the April – June 2005
quarter and will continue its roll out to other, smaller cities.

Managing India – India’s most acclaimed management show is back this quarter. The
series, hosted by Govindraj Ethiraj features corporate leaders in a comprehensive
dialogue about their professional styles, organization, strategies and other leadership
ingredients. The Managing India initiative is being launched in July with two ground
events held in Mumbai and Delhi titled Managing India Brainstorms.
Awaaz Update

True to its proposition of being the voice of the Indian consumer, Awaaz has launched a
host of new, consumer-based shows in the past few months. These shows have helped
Awaaz become the fastest growing television channel in the country. Today, in markets
like Gujarat, Maharshtra and parts of MP, according to TAM, Awaaz event beats
mainstream Hindi news channels in terms of viewership and market shares.

Awaaz Consumer Awards – Helping Consolidate Awaaz’s Position
The Awaaz consumer awards have been a runaway success. More than 7000
respondents across 21 cities voted their most preferred brands across 21 product
catogries. These brands were commended in a glittering Awards ceremony on July 08,
2005. This initiative has helped Awaaz consolidate its position amongst consumers as
well as marketers.

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 2005-06.

For further information on Business and Operations contact:
Haresh Chawla, CEO, Television Eighteen
Tel # 022-2490 0413; Fax # 022-56618984; e-mail: haresh.chawla@tv18online.com

For further information on financials contact:
R D S Bawa, CFO, Television Eighteen
Tel # 011-2353 3985; Fax # 011-2353 1035; e-mail: rds.bawa@tv18online.com

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

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