Investor Update Q2 FY 2009-10 ibn18 Broadcast Limited (Formerly Known as Global Broadcast News Ltd A Listed Subsidiary of Network18) ibn18 Consolidated Revenues at Rs 137.14 cr; 28% Higher than in Q1 Colors Is The Number 1 GEC Revenue Run Rate Crosses Rs 600 cr Per Annum o Reaches peak GRP of 325 in Q2 Highest for any GEC in 2009; Firmly Ahead of Star Plus & Zee TV o Maintains No.1 position in 8 weeks during the quarter o Ad revenues grow 46% Q-o-Q Strong Growth for MTV, Nick & Vh1 o MTV Undisputed Leader in Youth Entertainment/ Music; Double the No.2 s ratings; Ad Revenues up 17% (Q-o-Q) o Nick Leader in Kids Genre; 10% Y-o-Y Growth in Viewership o Vh1 100% Y-o-Y Viewership Growth; Remains a unique offering in International Entertainment Viacom18: Revenues Grow 36% Q-o-Q News Channels Build on Leadership Positions However, Revenues Lower in Q2 following an Exceptional Elections Quarter o CNN IBN The No.1 English News Channel for the Union Budget o IBN7 continues to consolidate its position in Hindi News o IBN Lokmat pushes ahead in the build up to the Maharashtra state elections; Q-o-Q Revenues Grow 84%
ibn18 Broadcast Limited Unaudited Consolidated Financial Performance for the Quarter ended 30th September 2009 (Rs. lakhs.) ibn18 - ibn18 - Viacom18 ibn lokmat Standalone Consolidated For the qtr For the qtr For the qtr For the qtr Jul-Sep'09 Jul-Sep'09 Jul-Sep'09 Jul-Sep'09 100% 50% (See Note 1) 50% INCOME a. Income from Operations 4,015.61 9,478.72 127.51 13,613.65 b. Other income 68.96 30.93 0.03 99.95 TOTAL 4,084.57 9,509.64 127.54 13,713.60 EXPENDITURE Production, a. administrative and other costs 3,986.32 10,323.11 193.56 14,494.69 b. Personnel expenses 1,759.23 997.84 103.52 2,860.58 TOTAL 5,745.55 11,320.95 297.07 17,355.27 EBITDA (1,660.98) (1,811.31) (169.53) (3,641.67) c. Interest and financial charges 1,005.85 92.03 47.28 1,145.16 d. Depreciation 351.60 93.54 55.19 500.46 TOTAL 1,357.45 185.58 102.47 1,645.62 PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS Exceptional expense (Impairment of ibn18 M) (3,018.43) (1,996.88) (272.00) (5,287.29) 2,967.41 - - 2,967.41 Profit/(Loss) before tax & ESOP (5,985.84) (1,996.88) (272.00) (8,254.70) Provision for taxes (Fringe benefit tax) (49.50) (18.65) - (68.15) ESOP Cost 50.29 - - 50.29 Profit/(Loss) after tax (PAT) (5,986.63) (1,978.23) (272.00) (8,236.84) Notes: 1. ibn18 Consolidated includes 50% share of IBN Lokmat and 33.7% share of Viacom18 for the first 14 days of Q2 and 50% of rest of the quarter, accounted for line-by-line in the JV method 2. Consolidated figures are after eliminating intercompany transactions
Viacom18 Unaudited Financial Performance for the Quarter ended 30th September 2009 (Rs. lakhs.) For the period Jul-Sep'09 INCOME a. Income from Operations 19,946.34 b. Other income 65.08 TOTAL 20,011.42 EXPENDITURE a. Production, administrative and other costs 21,723.23 b. Personnel expenses 2,099.78 TOTAL 23,823.00 EBITDA (3,811.58) c. Interest and financial charges 193.67 d. Depreciation 196.84 TOTAL 390.52 Profit/(Loss) before tax & ESOP (4,202.10) Provision for taxes (Fringe benefit tax) (39.25) Profit/(Loss) after tax carried to balance sheet (4,162.85)
ibn18 Broadcast Limited Unaudited Standalone Financial Performance for the Quarter ended 30th September 2009 (Rs. lakhs.) ibn18 (CNN IBN + IBN7) ibn18 (CNN IBN + IBN7) For the quarter For the quarter Jul-Sep'09 Jul-Sep'08 INCOME a. Income from News operations 4,015.61 4,558.02 b. Other income 68.96 86.74 TOTAL 4,084.57 4,644.76 EXPENDITURE a. Production, administrative and other costs 3,986.32 3,855.99 b. Personnel expenses 1,759.23 1,769.68 TOTAL 5,745.55 5,625.67 EBITDA (1,660.98) (980.91) c. Interest and financial charges 1,005.85 378.48 d. Depreciation 351.60 328.90 TOTAL 1,357.45 707.39 Profit Before Tax And Exceptional Items (3,018.43) (1,688.29) Exceptional expense (Impairment of ibn18 M) 2,967.41 - Profit/(Loss) before tax & ESOP (5,985.84) (1,688.29) Provision for taxes (Fringe benefit tax) (49.50) 53.13 ESOP Cost 50.29 16.20 Profit/(Loss) after tax carried to balance sheet (5,986.63) (1,757.63) Notes: 3. Figures for Jagran TV added to Q2 2008-09 ibn18 standalone figures to make it comparable with Q2 2009-10 standalone 4. Exceptional Expense: Represents amount of Option Premium paid by ibn18 through its wholly owned subsidiary which has been written off as an impairment
IBN Lokmat Unaudited Financial Performance for the Quarter ended 30th September 2009 (Rs. lakhs.) For the period For the period Jul-Sep'09 Jul-Sep'08 INCOME a. Income from News Operations 255.02 60.64 b. Other income 0.06 1.56 TOTAL 255.08 62.21 EXPENDITURE a. Production, administrative and other costs 387.11 616.72 b. Personnel expenses 207.03 247.20 TOTAL 594.15 863.92 EBITDA (339.07) (801.71) c. Interest and financial charges 94.56 65.88 d. Depreciation 110.38 92.19 TOTAL 204.94 158.07 Profit/(Loss) before tax & ESOP (544.01) (959.78) Provision for taxes (Fringe benefit tax) - 4.86 Profit/(Loss) after tax carried to balance sheet (544.01) (964.64)
BUSINESS OVERVIEW The second quarter of FY 2009-10 saw ibn18 consolidate its position across both news channels and Viacom18. Colors stood out with its continued leadership in the GEC space and spectacular revenue growth. 1. NEWS TELEVISION o CNN-IBN: The No.1 English News Channel The Undisputed Leader in Elections Coverage o IBN7 A Premier Hindi News Channel o IBN LOKMAT A Leading Marathi News Channel 2. ENTERTAINMENT (Viacom18) o COLORS The No.1 Hindi General Entertainment Channel (GEC) o MTV The No.1 Youth Entertainment/ Music Channel o NICK The No.1 Kids Channel o Vh1 The Only English Entertainment cum International music cum Lifestyle Channel 3. FILMS o STUDIO 18 A Motion Pictures Division of Viacom18 4. INTERNET PORTALS ibnlive.com-the internet news portal, www.ibnlive.com, (owned and managed by group affiliate Web18 Software Services Ltd.) serves as the online platform for CNN IBN. ibnkhabar.com - IBNKhabar.com is the online platform for IBN7. The site s content is in the Hindi (Devnagari) script and is probably one of the first such initiatives by any Indian news broadcaster to take news in Hindi to a global audience. News broadcast from CNN IBN and IBN7 is put up in text and other interactive formats on their respective sites. The sites provide streaming video feeds, downloadable tickers and breaking news alerts. IBNLive.com contains a section on investor relations which provides regular updates and statutory notices and press releases for IBN18 s shareholders.
CNN-IBN The No.1 English News Channel CNN-IBN is one of the top 24 Hour English News channels in India. Following an unrivalled leadership over the General Elections in the preceding quarter, CNN IBN started this quarter as the No.1 English News Channel for the Union Budget. The quarter was marked with several key initiatives including the 8 th edition of the biannual State of the Nation Poll and a market leading coverage of the Union Budget among others. CONTENT & PROGRAMMING: State of the Nation Poll: 8th Edition of SOTN, the biannual poll of CNN-IBN, was based on the broad theme of Changing Attitudes in Urban India. It looked at issues like homosexuality, English language & westernization, dress codes, religious symbols, male attitudes towards women, pre-marital sex & virginity, among others. Each issue was discussed in shows broadcast daily between Aug 10th and 15 th, 2009. Poll of Editors on 100 Days of the Government A CNN-IBN special overview on the UPA government s performance in its first 100 days based on a poll of renowned editors from across the country. The results were aired on Aug 29 th, 2009. Tendulkar At 20 An exclusive interview of Sachin Tendulkar as the legend completed his 20th season of playing international cricket. During the interview that went on-air on Sep 20th, 2009, the icon spoke about his childhood heroes, his take on limited overs international cricket, test cricket, the hunger that still drives him, etc. Lata - A Life in Music An exclusive interview of Lata Mangeshkar by Javed Akhtar where the legendary singer shared some of the best moments of her glorious career. The show went on-air on Sep 27 th, 2009. VIEWERSHIP PERFORMANCE Leadership During Union Budget CNN-IBN was the No. 1 English News Channel throughout the Union Budget Week and on the Union Budget Day, including the FM s speech across key audience groups, across metros and across the country. CNN-IBN was also the leader throughout the Pre-Budget week and Economic Survey day.
CNN-IBN is No.1 English News channel in All India Market (Channel Shares %) 0.10 0.09 0.09 CNN IBN Times Now NDTV 24x7 Source: TAM; TG: CS 25-44, Markets: All India; Time Period: Wk 27 09 Wk 38 09; All Days, 0600-2400 0.25 CNN-IBN - The No. 1 English News Channel on Union Budget Day, Leading Even Prominent Business Channels (Channel Shares %) 0.16 0.14 0.14 0.09 0.04 0.02 0.01 CNN IBN Times Now NDTV 24x7 NDTV Profit Headlines Today UTVi ET Now News X Source: TAM, TG: CS AB 15+ Yrs, Market: All India; Time Period: 06th Jul 09, 0600-2400
0.19 CNN-IBN - The No.1 English News Channel in the Union Budget Week, Leading Prominent Business Channels (Channel Shares %) 0.15 0.14 0.09 0.08 0.03 0.03 0.01 CNN IBN Times Now NDTV 24x7 Headlines Today NDTV Profit UTVi ET Now News X Source: TAM, TG: CS AB 15+ Yrs, Market: All India; Time Period: Wk28, All Days, 0600-2400 hrs
IBN7 One of India s Premier Hindi News Channels CONTENT & PROGRAMMING Property Bazaar Turned 100 Property Bazaar, IBN7s property show that guides viewers in understanding the nuances of India s real estate market, reached the 100 episode landmark on 22nd August. The special episode was shot in the breathtaking hill tracts of Uttarakhand and showcased housing options available there Tech Mantra Turned 75 IBN7 s tech show, Tech Mantra, reached its landmark 75th episode, which was aired on 20th September. The show revisited music technology from way back in the 70s till date with special guests - Disco King, Bappi Lahiri and the famous radio personality Amin Sayani. Mudda Editor s Poll On 100 Days Of The Government An IBN7 special which reviewed the UPA government s performance in its first 100 days based on a poll with renowned editors from across the country. The results were aired on Aug 29th, 2009. State of the Nation Poll, Tendulkar At 20 & Lata A Life In Music IBN7 also aired the above mentioned programmes which are detailed under the CNN IBN section. VIEWERSHIP PERFORMANCE IBN7 is at Par with NDTV India Among Key Audiences (Channel Shares %) 0.50 0.50 0.57 0.63 0.63 0.67 CS 25-44 CS AB 25-44 IBN7 NDTV India Zee News Source: Source: TAM; Markets: HSM; Period: 01st July 09 26th Sep 09; All Days, Time: 0600-2400 hrs
IBN LOKMAT No.1 in Marathi News Q2 FY 2009-10 was a period which marked the build up to the Maharashtra state assembly elections. IBN Lokmat was at the forefront with in-depth coverage of issues facing the people of Maharashtra as they prepared to elect their state representatives. The channel spoke to the key politicians and also undertook a special initiative to register the people s demands from their candidates. CONTENT & PROGRAMMING Railways & Union Budget Special Coverage: Special shows with experts in the build up to the Union and Railway Budgets and reviewing their impact on the common man. Live coverage during the FM Speech along with expert s analysis. IBN-Lokmat Ganeshotsav - BAPPA MORYA RE Live coverage of the Ganesh Mahotsav festival with interactive SMS & MMS contests like the Ganesha Quiz & Gharcha Bappa. IBN-Lokmat accompanied celebrities in visits to the houses of the common citizens on the occasion of he festival IBN Lokmat Express Election Special An IBN Lokmat branded open-air double decker bus travelled all over Maharashtra to register the people s manifesto for the forthcoming elections. It was a people centric initiative that discussed issues of governance & local concerns. Awaaj Kunachaa: A talk show held over the month of September that involved politicians and the local people of all major cities of Maharashtra. The show became a bridge between people and the leaders. Great Bhet - Election Special Series: An series with Nikhil Wagle who interviewed all the leading political figures for the Maharashtra state elections Politicians interviewed included Raj Thackeray, Uddhav Thackeray, Gopinath Munde, and Sharad Pawar
Viewership Performance 1.16 IBN Lokmat - The No.1 Marathi News Channel Across Affluent Audiences On Budget Day 1.05 0.99 0.95 0.87 (Channel Shares %) 1.35 1.25 1.51 1.20 1.40 0.64 0.47 CS 25+ A CS 25-44 A CS Males 25-44 A CS Males 15+ A IBN Lokmat Star Majha Zee 24 Taas Source: TAM, Market: Maharashtra; Time Period: Wk 28 09 (06th July 09), All Days, 0600-2400 During the FM's Budget Speech, IBN Lokmat was the Leader Across Audiences (Channel Shares %) 3.31 2.71 2.43 1.72 1.42 0.94 0.82 0.85 0.73 0.39 0.29 0.38 1.00 1.40 1.26 1.06 1.02 0.51 CS 15+ A CS 15-44 A CS 15-44 AB CS 25+ A CS 25-44 A CS MALE 25+ AB IBN Lokmat Star Majha Zee 24 Taas Source: TAM, Market: Maharashtra; Time Period: Wk 28 09 (06th July 09), All Days, 1100-1300
VIACOM18 Led by the continued success of Colors, Viacom18 ended Q2 FY2009-10 with strong revenue growth and by reaffirming its position at the top of the genres in which its channels operate. The quarter saw Colors touch a lifetime high ratings of 325 GRPs, the highest any GEC has reached in calendar year 2009 till date. MTV remained the unquestioned leader in the Youth Entertainment segment, while Nick and Vh1 showed a strong year on year growth in viewership. COLORS The No.1 Hindi GEC CONTENT & PROGRAMMING The Leading Shows of the Channel Include: Balika Vadhu continues to be the No.1 show in its slot with a peak rating of 4.85 TVRs and averaging 4.64 TVRs for the week ending 26th Sep 2009. Uttaran is the No.1 show in the 10-10:30pm slot averaging 4.6 TVRs for the week ending 26th Sep 2009. Laado in the 10:30-11pm slot leader with an average of 3.93 TVRs for the week ending 26th Sep 2009. Fear Factor Khatron Ke Khiladi 2 launched on 7th Sep. The show opens with a spectacular rating of 4.37 TVRs. Bairi Piya, a new fiction show launched on September 21 st with an opening rating of 2.99 TVRs. Viewership Performance Colors - India's No.1 GEC in JAS 2009 Weekly Viewership Share % (Jul - Sep 2009) 23.2 22.3 20.6 10.2 9.3 5.4 4.1 2.6 1.5 0.6 Colors Star Plus Zee TV Sony NDTV Imagine SAB Star One Sahara One 9X Real Source: TAM, Hindi Speaking Markets (HSM) CS 4+; Jul Sep 2009
Colors - Weekly GRP Trend Jul - Sep 2009 300 284 308 267 282 268 278 297 288 294 325 279 263 Wk 27 Wk 28 Wk 29 Wk 30 Wk 31 Wk 32 Wk 33 Wk 34 Wk 35 Wk 36 Wk 37 Wk 38 Wk 39 Source: TAM, Hindi Speaking Markets (HSM) CS 4+; Jul Sep 2009 Source: TAM, Hindi Speaking Markets (HSM), CS 4+ Content & Programming: MTV The No.1 Youth Entertainment Destination
Rock on with MTV sways viewers A talent hunt show for India s No.1 desi rock band! (Sat, 7pm) Stunt Mania Stuns Audiences India s first stunt biking series (Sun, 7pm) Roadies 7 in Africa with Irrfan Khan (Sun, 7pm) Splitsvilla 3-5 couples, 10 singles in Phuket (Sat, 7pm) Brand & Platform Diversification: This Diwali, MTV goes beyond music, beyond television MTV to drop MUSIC TELEVISION from under it s logo from Oct 17, 2009 sporting a brand new look MTV to focus on delivering all that the youth want beyond just one screen with changes reflecting on-air, online, and on ground. Viewership Performance
MTV: Continues to Rule @ No. 1 2x Lead Over Nearest Competitor 0.20 0.10 0.09 0.08 0.05 MTV 9X M Zoom Bindass [V] Source: TAM HSM 15-24 AB April 09 - Sep 09 Operating Performance Highlights Q2 09: The biggest ever quarter for MTV with September 09 setting new records o Beating the highest ever quarter of the previous year o with 2 of our biggest shows Roadies 7 & Splitsvilla 3 yet to come MTV crosses the 200 advertiser mark 2 high visibility AFPs launched on MTV o Stunt Mania with Bajaj Pulsar o Fast & Gorgeous with Force India Rock On rakes in MTV s highest ever Sponsorship premium
NICK The Leading Kids Channel Key Quarter Highlights Nick continues to dominate the kids genre all throughout 2009 and has seen 10% y-o-y growth in market share over Q2 last year. Nick launched its English feed in July 09 and is now available in dual audio feed Hindi and English. Nick has also launched its services in the South market (AP, Karnataka and Kerala) to expand into new markets and become an all India leader in Kids. It has the fastest growing Reach with a viewership base of 7mn. kids. It is also one of the stickiest channels with weekly time spent as high as 117 mins. Content & Programming: Nick launched 3 new shows in the qtr Atashinchi, Janken Man and Oggy & the Cockroaches. The shows have opened very well and rate among the top 50 slots in the category. Platform Diversification Multiplatform Initiatives & Consumer Products Nick engaged with kids through innovative and clutter breaking multiplatform initiatives. o E.g. Dora took kids to the planetarium during the solar eclipse and Nick distributed solar lenses across the country o Little Krishna made inroads into close to 1000 schools, etc. Nick has captured the retail space with multiple Consumer Product (CP) launches such as storybooks, puzzles, plush, home video, crayons, note books, etc. led by Dora & Spongebob. o A milestone for the brand has been the launch of Dora & Spongebob COLGATE toothpaste for kids. o Nick has acquired the CP license of its super hit shows Ninja Hattori & Little Krishna. Branded products will hit shelves by Dec 09. Viewership Performance Nick - 10% y-o-y Growth in Market Share (Relative Share % - Jul-Aug 2008 vs Jul-Aug 2009) 23 21 Q2 FY 2008-09 Q2 FY 2009-10
VH1 No.1 in International Entertainment Vh1 s continues to be India s only International Entertainment cum Lifestyle cum International Music channel. Till date, Vh1 has increased its reach Content & Programming: Vh1 dedicated the entire month of August 2009 to the King of Pop, Michael Jackson. The channel paid tributes to the legend throughout the month with specials every week. The crowning glory was a 4 hour special on his birthday on Aug 29 th Michael Jackson s Greatest TV Moments Michael Jackson Video Shuffle Michael Jackson A Tribute Michael Jackson: Official All Time Top 40 Viewership Performance Vh1-100% Growth in Y-o-Y Viewership (Channel Shares %) 0.08 0.04 Apr-Sep '08 Apr-Sep '09 Source: TAM Market : 5 metros Period : Wk 14-39 09 TG: CS 15-34 Sec AB
Vh1-20% y-o-y Growth in Reach (Category Share %) 7.2 5.8 Apr'Sep'08 Apr-Sep'09 Source: TAM Market : 5 metros Period : Wk 14-39 09 TG: CS 15-34 Sec AB STUDIO18 The Film s Division Studio18, the motion pictures & filmed entertainment division of Viacom18 distributed a series of films over Q2 FY 2009-10 and has a slate of movies lined up for future release. Studio18 distributed three films over the quarter: Shortkut the Con is On, Luck and Life Partner. During this period, Studio18 supervised the co-productions Loot, Kaun Bola and King Kon. Line production activity for the film Ishq Unplugged is in progress The film Fruit & Nut, a comedy, is scheduled for an October 23, 2009 release. Other films expected to release over Q4 of the current fiscal include Striker, Ishq Unplugged, Kaun Bola and Banda Yeh Bindaas Hai. In the overseas markets, Studio18 will be distributing the London Dreams which is scheduled for an October 30, 2009 release * * *
INVESTOR COMMUNICATION: ibn18 s ongoing investor communication endeavors to adopt best international practices and the 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 from our website www.network18online.com. This update covers the company s financial performance for FY 2008-09. For further information please contact: Haresh Chawla, Group CEO, Network18 Sameer Manchanda, Jt. MD, ibn18 Tel # 022-40019186; Fax # 022-66618984; Tel # 0120-4341806; Fax 0120-4324103; e-mail: haresh.chawla@network18online.com e-mail: sameer.manchanda@network18online.com R D S Bawa, Group CFO, Network18 Tel # 0120-4341700; Fax # 0120-4324110; e-mail: rds.bawa@network18online.com More information on the company is available on its website www.network18online.com ibn18 Broadcast Limited is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India ("SEBI"). The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Manager at www.icicisecurities.com. Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled "Risk Factors" of the Draft Letter of Offer for details of the same.