NDTV Ltd is on an expansion overdrive. In over a year, it has launched a slate of channels and moved beyond news into the lucrative Hindi general entertainment space.
The company has attracted NBC Universal to pump in $150 million for an effective indirect holding of 26 per cent stake in NDTV Networks Plc. Further capital infusion of $120 million has come from a clutch of investors.
NDTV's stake in the joint venture company with Malaysia-based Astro has increased from 20 per cent to 30 per cent. The company has also launched NDTV Arabia to tap customised channels in international markets.
Shepherding this growth has been NDTV Group CEO KVL Narayan Rao. In an interview with Indiantelevision.com's Sibabrata Das, Rao chalks out the company's expansion plans and the need for the group to consolidate its operations.
Excerpts:
Is NDTV floating a joint venture company with The Hindu Group to launch a Chennai city-centric channel? |
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Will we see NDTV get into more such deals with print owners to tap regional markets? |
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Are the MetroNation channels being transferred to a subsidiary company called NDTV News Ltd? |
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NDTV ended last fiscal with a consolidated loss of Rs 1.86 billion. When do we see a turnaround?
We forayed into the Hindi general entertainment space with NDTV Imagine in January this year and have just launched Imagine Showbiz. We launched MetroNation in Delhi last year and it is doing well in terms of audience and reach. Now our focus will be to monetise this.
We have already obtained licence for the World Cinema channel and will be launching it in the next couple of months. MetroNation in Mumbai will probably come up in the next fiscal. We have our plate full. |
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Is NDTV spreading itself too thin?
As for NDTV, we are adequately funded to support our expansion drives. We have have built the quality and ability to scale up. And in the news business, credibility is the only way to move forward. |
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Will NDTV Networks Plc. raise money by listing on the Alternative Investment Market (AIM) of the London Stock Exchange? |
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NBC Universal has the option to increase its stake from 26 per cent to 50 per cent. Will NDTV part with majority in its non-news company? |
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Colors has made a strong debut. Will this affect the break even period of NDTV Imagine which reportedly has a funding support of $106 million? |
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While the trend in an entertainment bouquet is to have a GEC and a Hindi movie channel, NDTV Imagine Ltd has launched a niche channel in Showbiz through a joint venture partner. What is the holding structure and potential for this channel?
The launch of a Hindi movie channel is also in the pipeline. We are already in the process of acquiring movies. We are also going to be present in film production. |
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NDTV's consolidated revenue was at Rs 3.66 billion for FY'08. What contributed to this 31 per cent jump in turnover over the year-ago period? |
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Isn't there a temptation to take NDTV India the tabloid route as many Hindi channels have successfully done to grow audiences? |
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How is the joint venture with Malaysia-based Astro faring? |
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NDTV Emerging Markets is a subsidiary company which launched NDTV Arabia. Are we going to see more such customised channels being launched in other countries through this company?
NDTV Arabia will now break into local news bands. It is our first venture into the Middle East and Africa as a customised channel. Yes, NDTV Emerging Markets will launch more such channels in other international markets to provide local news content. It is part of our international expansion plan to reach out to new target audiences. |
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NBC Universal's investment of $150 million for 26 per cent stake in NDTV's Dutch subsidiary company puts the valuation at Rs 24.2 billion. The market cap of NDTV Ltd, which includes the news channels as well, was marginally higher at Rs 24.5 bn (July-end). Since the true value is not captured, is this the reason why NDTV Ltd is planning to de-merge the company into "news related businesses" and "non news businesses?"
The aim is to unlock shareholder value and to promote the focused growth of our various businesses. Consultants are working on this and we will evaluate various options after receiving their feedback. |