Broadcast Limited (Earlier Known as Global Broadcast News Ltd - Listed Subsidiary of Network18)
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1 Investr Update Q2 FY09 ibn18 i Bradcast Limited (Earlier Knwn as Glbal Bradcast News Ltd - Listed Subsidiary f Netwrk18) "COLORS" OVERTAKES ZEE TO CLINCH NO.2 POSITION AMONG HINDI GECs; SET TO CHALLENGE STAR PLUS s LEADERSHIP IN THE SPACE* MORE THAN 120 BRANDS ALREADY ADVERTISING ON COLORS, REVENUES DISPLAY A STRONG BEGINNING SPECTACULAR PERFORMANCE BY OTHER ENTERTAINMENT CHANNELS MTV s Q2 Revenues Up 50% (YY) and H1 Revenues Up 30% (YY) Nickelden Takes Big Leap In Categry Share and Reach Levels; Firmly Placed At N.2 Psitin In Kid s Entertainment Genre VH1 s Q2 Revenues Up 50% (YY); Dminates English Entertainment Space With 21% Categry Share CNN-IBN RETAINS PREMIER POSITION AMONG ENGLISH NEWS CHANNELS CNN-IBN s Q2 Revenues Grw by 17% n YY Basis IBN7 - FASTEST GROWING CHANNEL IN THE HINDI NEWS SPACE IBN7 Q2 Revenues Pst Strng Grwth - UP 28% (QQ) IBN LOKMAT MAINTAINS LEADERSHIP POSITION AMONG MARATHI NEWS CHANNELS STUDIO18 RELEASED SUPERHIT MOVIE SINGH IS KINNG ; GEARS UP FOR BIG-TICKET RELEASES : GOLMAAL RETURNS & GHAJINI * IBN18 has entered int an ptin agreement fr the purchase f 50% stake in Viacm18 India Private Limited. Upn exercise f this ptin agreement, Viacm18 India Private Limited results will als be cnslidated. IBN18 has acquired a 6.6% stake in the Rights Issue f Viacm 18 India Private Limited.
2 ibn18 Bradcast Limited: Unaudited Standalne (fr CNN-IBN nly) Financial Perfrmance fr the Quarter ended 30 th September 2008 Rs. mn. Particulars Q Q Q REVENUES: NEWS OPERATIONS Operating Expense Operating Prfit (39.80) (11.51) (27.69) Net Outflw n Revenue Share with CNN (14.58) (10.80) (12.97) Interest/Incme frm Investments Interest Expense (27.89) (27.51) (33.46) Interest (Net) (23.30) (19.87) (29.19) Depreciatin (20.14) (13.91) (17.72) Ttal Prfit Befre Tax, Minrity Interest and ESOP Charge Out (97.82) (56.08) (87.57) Prvisin fr Current Tax/FBT Prfits After Tax (befre ESOP charge ut) (100.92) (58.13) (89.97) ESOP charge ut Prfits After Tax and ESOP Charge Out (102.55) (63.85) (93.44) Exchange Fluctuatins 5.40 (0.25) 1.19 Prfits After Exchange Fluctuatins (107.95) (63.60) (94.63) Prvisin fr Deferred tax Net Prfit After Deferred Tax (107.95) (63.60) (94.63) Paid up Equity Share Capital EPS (Rs.) withut ESOP charge ut (0.76) (0.43) (0.68) EPS (Rs.) with ESOP charge ut (0.78) (0.48) (0.71)
3 ibn18 Bradcast Limited: Unaudited Cnslidated (fr CNN-IBN & IBN Lkmat) Financial Perfrmance fr the Quarter ended 30 th September 2008 Particulars Q Q REVENUES: NEWS OPERATIONS* Operating Expense Operating Prfit (79.97) (49.05) Net Outflw n Revenue Share with CNN (14.58) (12.97) Interest/Incme frm Investments Interest Expense (31.18) (35.89) Interest (Net) (26.52) (31.44) Depreciatin (24.75) (22.00) Ttal Prfit Befre Tax, Minrity Interest and ESOP Charge Out (145.81) (115.47) Prvisin fr Current Tax/FBT Prfits After Tax (befre Share in lsses f Assciates and ESOP charge ut) (149.16) (118.10) Share in lsses f Assciates (33.23) (42.77) Prfits After Tax and Minrity Interest and Share in Lss f Assciate (befre ESOP charge ut) (189.06) (160.87) ESOP charge ut Prfits After Tax and ESOP Charge Out (182.39) (164.35) Exchange Fluctuatins (5.40) (1.19) Prfits After Exchange Fluctuatins (189.54) (165.54) Prvisin fr Deferred tax Net Prfit After Deferred Tax (189.54) (165.54) Paid up Equity Share Capital EPS (Rs.) withut ESOP charge ut (1.35) (1.21) EPS (Rs.) with ESOP charge ut (1.36) (1.24) *The Bard f Directrs have apprved the Scheme f Arrangement between B.K. Fincap Private Limited ( BK Fincap), Jagran TV Private Limited (JTV), and the Cmpany fr acquisitin f "IBN 7" channel business frm JTV and the merger f BK Fincap int the Cmpany with effect frm 1 Octber, 2007 and 2 Octber, 2007 respectively. The Scheme has been apprved by the Hn'ble Delhi High Curt. The cpy f the rder apprving the scheme is yet t be received frm the Hn'ble Delhi High Curt. Cnsequently, the net lss f Rs 753 lacs and Rs. Nil (as per management accunts) n behalf f JTV and BK Fincap respectively fr the quarter ended 30 September, 2008 and the net lss f Rs.1626 lacs and Rs. Nil (as per management accunts) n behalf f JTV and BK Fincap respectively fr the half year ended 30 September, 2008, will be merged with ibn18 Bradcast Limited. The Cmpany has als entered int an ptin agreement fr the purchase f 50% stake in Viacm18 India Private Limited. Upn exercise f this ptin agreement, Viacm18 India Private Limited results will als be cnslidated. The cmpany has acquired a 6.6% stake in the Rights Issue f Viacm 18 India Private Limited.
4 Jagran Televisin Private Limited Unaudited Standalne (fr IBN7 nly) Financial Perfrmance fr the Quarter ended 30 th September 2008 Rs mn. Particulars Q Q Q REVENUES: NEWS OPERATIONS Operating Expense Operating Prfit (46.98) (66.70) (70.54) Interest/Incme frm Investments Interest Expense (9.96) (10.32) (9.67) Interest (Net) (5.87) (5.54) (5.23) Depreciatin (12.75) (9.33) (11.00) Ttal Prfit Befre Tax, Minrity Interest (65.61) (81.57) (86.77) Prvisin fr Current Tax/FBT Prfits After Tax (befre minrity interest) (67.82) (83.88) (87.29) Minrity Interest Prfits After Tax and Minrity Interest (67.82) (83.88) (87.29) Exchange Fluctuatins Prfits After Exchange Fluctuatins (67.82) (83.88) (87.29) Prvisin fr Deferred tax Net Prfit After Deferred Tax (67.82) (83.88) (87.29) Paid up Equity Share Capital Earnings Per Share (Rs.) (1.01) (1.25) (6.49)
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6 ibn18 Bradcast Limited ibn18 has led the successful cre cmpetency expansin fr Netwrk18 int the general news & entertainment space. Thrugh its hlding in ibn18 Bradcast Limited (earlier knwn as Glbal Bradcast News Ltd (GBN) [BSE: ,NSE:ibn18], Netwrk18 perates leading general news channels CNN-IBN and IBN7 and has launched IBN Lkmat, a Marathi news channel in partnership with the Lkmat grup. ibn18 als perates a jint venture with Viacm, called Viacm18 which huses the MTV, VH1 and Nickelden channels in India - as als Studi18, the Grup s filmed entertainment peratin and has launched Clrs A new channel that has made a spectacular start in the Hindi general entertainment space. CNN-IBN 1. NEWS TELEVISION CNN-IBN A market leader in the English general news space. IBN 7 A prminent player in the Hindi news market IBN LOKMAT A jint venture with leading Marathi media grup, Lkmat. First reginal channel annunced by the Lkmat grup. 2. ENTERTAINMENT VIACOM 18 i. MTV India s N.1 yuth entertainment and music channel ii. VH1 India s nly internatinal music and lifestyle destinatin iii. NICKELODEON One f India s fastest grwing channels targeted at pre-teens iv. COLORS A newly launched channel that has already established a strng psitin in the Hindi general entertainment space. v. STUDIO 18 India s leading full spectrum mtin pictures entity. PERFORMANCE HIGHLIGHTS IBN NETWORK This quarter witnessed landmark initiatives frm India s leading general English news channel including fresh prgramming initiatives and special prperties. Cntent Leadership Launched Weekend editin with Rajdeep Sardesai, a new pwer packed 1 hr shw fcusing n majr natinal issues with a high dse f interactivity including blgs, plls, interviews and debates. Enriched its cntent line up with tpical specials such as Fists f Glry and Gld Finger, celebrating India s Olympic triumph. Mre such prperties are in the ffing in the next quarter. Viewer engagement As part f its Md f the Natin pll series, CNN-IBN and CSDS cnducted wide ranging plls n issues such as Nuclear Deal, the Trust Vte in Parliament, UPA gvernment s perfrmance & inflatin. Partnerships CNN-IBN cntinued t build strng partnerships fr augmenting its cntent ffering. CNN-IBN tied-up with English daily DNA fr State f the Natin pll, fcusing n changing scial mres f The Great Indian Urban Family. This was fllwed by the an exclusive CNN-IBN & Hindustan Times jint pll n terrrism and anther ne n selecting the natin s mst legendary Bengali which was dne with The Telegraph. Sustained viewership CNN-IBN cntinues t be India s leading English general news channel.
7 CNN-IBN : INDIA S LEADING ENGLISH NEWS CHANNEL IBN7 CNN IBN NDTV 24x7 Times Nw Headlines Tday News X Surce: TAM ; Markets: All India ; TG: CS AB, Channel Share, Perid: Wk , , Weekdays Benchmark prperties Frm the pineering Diamnd States awards, which recgnized develpmental achievements f Indian states and a special Utsav series t cver India s varius festival hues t the State f the Natin pll n the urban Indian family and benchmark cverage f the Olympics, IBN7 led frm the frnt. Strategic Partnerships IBN7 built n its leadership mmentum with strng partnerships fr majr audience prperties such as Indian Idl with Sny, Big Bss and Khatrn Ke Khiladi with Clrs and RJ Marathn with Big FM apart frm the State f the Natin plls with majr news daily Hindustan. Awards - IBN7 gt 17 nminatins in News Televisin Awards 2008 and wn awards fr Best News talk shw Zindagi Live ; Best Investigative News Reprt Maya ; Best Crime Shw Criminal. Upcming IBN7 has lined up a series f new fferings including a new seasn f Zindagi Live, the Citizen Jurnalist Awards, state electins, Yung Indian f the Year awards and the Delhi Marathn Strng viewership base IBN7 : INDIA S FAST GROWING HINDI NEWS CHANNEL IBN 7 Zee News NDTV India IBN 7 Zee News NDTV India Weekdays All Days Surce: TAM, TG: CS 15-44, Market: HSM, Channel Share, Time Perid: Wk
8 IBN LOKMAT ibn18 and the Lkmat Grup, Maharashtra s leading Newspaper grup, launched IBN-LOKMAT - a 24-hur Marathi News and Current Affairs Channel. Strng Jurnalistic Cred - IBN-Lkmat has embarked n the principle f delivering news t the highly aware and cnscius Prgressive Marathi, with the spirit f Chala, Jag Jinkuya! (Literally meaning, Let s cnquer the Wrld). State f the Art resurces IBN-Lkmat is equipped with a state-f-the-art bradcast centre, extensive infrastructure and internatinal prductin quality. Editrial Repute & Wide Netwrk f Jurnalists - The channel is hme t the finest new age multimedia jurnalists led by Nikhil Wagle as the Editr and Rajdeep Sardesai, Editr-in-Chief, IBN Netwrk. With reprters in every district f Maharashtra, and access t natinal and glbal netwrks, IBN Lkmat prmises t becme a bridge between Maharashtra and the wider wrld. Leadership Presence After an impressive beginning, IBN Lkmat cntinues t build strngly n its audience base. IBN Lkmat has emerged as the leading reginal news channel in Maharashtra. With the best internatinal infrastructure and editrial resurces, IBN Lkmat has started t deliver a large prprtin f tp prgrams with the state. IBN LOKMAT: ESTABLISHING LEADERSHIP IBN Lkmat Star Majha Zee 24 Taas Maharashtra Surce: TAM; Market: Maharashtra; TG: CS A 15+ Yrs; All Days, Time: hrs, Channel Share, Perid: Wk (29 th Jun th July 08)
9 VIACOM18 ibn18 als perates a jint venture with Viacm, called Viacm18 which huses the MTV, VH1 and Nickelden channels in India - as als Studi18, the Grup s filmed entertainment peratin and has recently launched COLORS, a Hindi general entertainment channel. MTV MTV cntinues t frge its way frward as per its defined strategy t braden its prduct ffering beynd music, t increase its stickiness, build the MTV universe beynd televisin and mnetize the brand thrugh alternative revenue streams. The quarter saw several launches and big milestnes Cntent Leadership 12 ut f Tp 25 shws in the categry are frm MTV.Tp 3 shws are frm MTV. MTV has 31% share in the Yuth GEC categry. Vdafne MTV Splitsvilla was the highest perfrming shw acrss MTV. Amngst digital audiences, MTV was the channel f chice fr 5 ut f 7 weeks. New Initiatives ROADIES MTV Her Hnda Radies in its 6th seasn ges t Australia with Radies Hell dwn under MTV Radies Battlegrund A purely digital initiative received a tremendus respnse Radies Merchandising - Radies extended int ver 20+ new prduct categries including helmets with Wrangler, statinery with BILT, cllectibles with Archies and hme vide. FULLY FALTOO - MTV Fully Falt Films Festival launched with 3 spfs: Bechaare Zameen Par, Cheque De India & Jad Ek Bar. Besides generating huge PR, the series delivered a 1+ TVR acrss digital audiences with Cheque De India hitting an unprecedented 3.95 TVR. STYLE CHECK - MTV Style Check in its new avatar started starring yuth star Deepika Padukne. MTV YOUTH ICON Celebrated prperty frm MTV is ready fr a new seasn. Platfrm Diversificatin - MTVindia.cm cntinued t grw with new innvatins in frmat (Radies Battlegrund) and nline initiatives. Grwth Mmentum & Upcming Over 30% grwth in revenue was recrded, n a year n year basis (Half Yearly). MTV has lined up a rbust cntent pipeline with strng prperties such as Radies Rear View, Splitsvilla 2, On the Jb,Style Challenge, Tech Check, Twin Cnnectin.
10 MTV : BUILDING ON ITS YOUTH GEC LEADERSHIP Q1 Q2 Surce: TAM; HSM; 15-24; SEC AB MTV : BUILDING LEADING BRANDED PROPERTIES & SCALE Significant Ad Revenue mmentum, year n year 50 50% abve last yr 40 Half Year 30% 30 27% abve last yr Q1 Q2 H1
11 VH1 Vh1 finished the quarter at N. 2 psitin in the English Entertainment Categry with 21% Share f Categry Driver shw Saturday Night Live launched successfully. Rated tp shw in the categry fr Week 39 (launch) Ad Sales Revenues fr the quarter grew 50% y--y New client base grew 30% quarter-n-quarter VH1 : INDIA S INTERNATIONAL MUSIC LEADER REACHES NEW HIGHS 25% 20% 15% 15% 18% 21% 10% 10% 8% 5% 0% W K : 35 W K : 36 W K : 37 W K : 38 W K : 39 VH1 Surce: TAM TG : All Adults, CS Sec AB Market : 5 Metrs Perid : WK 27-WK NICKELODEON Leadership Grwth Nickelden sustained its leadership march in the kids and pre-teens genre. Highest categry share grwth f 29%. Has begun t achieve genre leadership, with N.1 perfrmance (Week 36) and a cnsistently being a strng N.2 thrugh September. Achieved reach levels f 24%, a grwth frm 19% earlier, while cmpetitin has witnessed de-grwth in the same perid. Upcming Initiatives Tn Jckey - TJ - Based n the insight that kids increasingly seek empwerment; Nick TJ will give them an pprtunity fr being the face f the channel and receive natinal acclaim. This initiative will be supprted by an aggressive marketing activity. Finzini Circus A new family entertainment shw based n shwcasing acrbatics, magic and cmedy NICK : GROWING CONSISTENTLY TO BECOME A STRONG NO. 2 Tn D, 6 Relative Shares Q2'07(JAS'07) Disney, 13 Nick, 16 Hungama, 26 POGO, 15 CNW, 23 Tn D, 4 Relative Shares Q2'08(JAS'08) Disney, 10 Nick, 21 Hungama, 23 POGO, 17 CNW, 25 TG : MF 4-14 ABC,HSM1L+,07:00 22:00 Cmparisn between Q2 08(J/A/S 07) & Q2 08(J/A/S 08)
12 COLORS: A LANDMARK IN INDIAN TELEVISION This quarter was truly remarkable in Indian televisin histry, as it saw the birth and unprecedented rise f COLORS as ne f India s mst preferred general entertainment chices. Within a cuple f mnths f launch, COLORS has surpassed entrenched incumbents with exceptinal prgram perfrmance, innvative shw frmats and a fast grwing lyal audience base. COLORS has been widely heralded as a game changer in the intensely cmpetitive and cluttered GEC space and has had a significant categry grwing influence as well. COLORS STRATEGIC FOCUS: Based n the crnerstnes f Differentiatin and Disruptin, COLORS s launch challenged the GEC status qu acrss the prgramming, marketing and distributin spectrum. Fcused n delivering a chesive family viewing experience, the channel was able t deliver a wide variety f cntent acrss genres cvering the entire gamut f emtins. COLORS : A GAME CHANGING & CATEGORY GROWING INFLUENCE Sustained grwth since launch, Overtakes Zee within 10 weeks Surce TAM Viewership data. Time Perid: 11 weeks ending 4 th Oct 2008, Markets Hindi Speaking Markets. TG CS 4+
13 COLORS : COMPELLING CONTENT Differentiatin, Disruptin, Leadership Surce TAM Viewership data. Time Perid: 11 weeks ending 4 th Oct 2008, Markets Hindi Speaking Markets.TG CS 4+ COLORS : STRONG INITIAL ADVERTISER TRACTION N f Advertisers Surce : TAM Viewership System, TG: CS 4+ Markets: Hindi Speaking Markets Time perid : 9X (12 th Nv 07), NDTV Imagine (21 st Jan 08 ) & Clrs (21 st July 08)
14 COLORS : GAINING THE TRUST OF ADVERTISERS, DELIVERING VALUE N f Advertisers Surce: TAM Viewership System TG: CS 4+ Markets: Hindi Speaking Markets Time perid : Clrs (July 21 st t Oct 21 st, 2008) STUDIO18 The 360-degree mtin pictures & filmed entertainment divisin f Viacm18 strengthened its presence acrss the distributin, prductin and acquisitin spectrum. Key perfrmance indicatrs were as fllws: Distributin Released Singh is Kinng n 8th August, 08 Dmestic: Biggest ever pening in the actin cmedy genre Overseas: Biggest ever film in Canada till date; Highest Akshay Kumar grsser in UK and US. Prductin Status / Prjects under develpment There are varius films under varius stages f develpment. Key under prductin films are Fruit & Nut, Dil Kabbadi, Lt, Prductin N.3, Rad Mvie, Hey Gujju, Kaun Bla Hme Vide Singh is Kinng hme vide rights sld t Big Hme vide fr 5 yrs. Kidnap, Glmaal Returns and Dil Kabbadi hme vide rights sld t Mser Baer.
15 INVESTOR COMMUNICATION: Ibn18 s nging investr cmmunicatin endeavrs t adpt best internatinal practices and the quarterly investr updates are designed t regularly prvide detailed infrmatin t investrs. Each update cvers infrmatin pertaining t the reprting perid under review. If yu wuld like t get a sequential and cntinued perspective n the cmpany this reprt shuld be read alng with the updates sent ut earlier. The previus updates can be accessed frm ur website This update cvers the cmpany s financial perfrmance fr Q2 FY Fr further infrmatin please cntact: Haresh Chawla, Grup CEO, Netwrk18 Tel # ; Fax # ; haresh.chawla@netwrk18nline.cm Sameer Manchanda, Jt. MD, Ibn18 Tel # ; Fax ; sameer.manchanda@netwrk18nline.cm R D S Bawa, Grup CFO, Netwrk18 Tel # ; Fax # ; rds.bawa@netwrk18nline.cm Mre infrmatin n the cmpany is available n its website
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