On standalone i.e. the news business, NDTV reported 6% dip in sales at Rs 69.35 crore with operating loss down 77% at Rs 2.70 crore. The net loss was down 9% at Rs 11.85 crore in the corresponding quarter previous year.

The Board of Directors at their meeting held on October 1, 2008 had approved the Scheme of Arrangement ('the Scheme') for de-merger of the news businesses of the Company. Accordingly, the Company will be split into two groups of companies: one group of companies will carry out 'News and other businesses' and the other group of companies will carry out 'Entertainment and specified allied businesses'. This de-merger will be carried out pursuant to Section 391 to 394 read with sections 78, 100 to 103 of the Companies Act, 1956. After the de-merger, for every one share currently held in the Company, a shareholder will hold one share in the holding company whose subsidiaries will carry out the 'News and other businesses' and one share in the holding company whose subsidiaries will carry out the 'Entertainment and specified allied businesses'. The Appointed Date for the Scheme has been specified as April 1, 2009. The Appointed Date for the Scheme has been specified as April 1, 2009. The Scheme is subject to the approval of the High Court Of Delhi and the Company has filed the same with the High Court of Delhi for obtaining such approval. The meeting of the shareholders and the creditors (other than trade) of the Company held on March 24, 2009, pursuant to the orders of the Honorable High Court of Delhi, have approved the scheme. The final approval of the Honorable High Court of Delhi of the scheme is awaited.

In October 2009, the Company through its subsidiary NDTV Networks BV has bought back NBC Universal's 26% indirect stake in its subsidiary NDTV Networks Plc, to further consolidate its position.

For the quarter ended September 2009, NDTV reported 17% rise in operating income at Rs 140.37 crore. The loss at operating level decreased 44% at Rs 61.74 crore on the back of cost cutting measures initiated by the Company. As a % of operating income, production expenses decreased 810bps at 50.3% and in absolute terms was up 0.6%, staff costs decreased 1810bps at 31.2% and in absolute terms down 26%, marketing & promotions expenses was down 1060bps at 37.5% and in absolute terms was down 9%, and other expenditure decreased 1070bps at 24.9% and down 18% in absolute terms.

The other income decreased 56% at Rs 3.36 crore, interest cost increased 68% at Rs 21.75 crore and depreciation charge increased 23% at Rs 9.18 crore, resulting at loss on PBT before EO level at Rs 89.31 down 27% over the corresponding quarter previous year. Tax credit including current tax, deferred tax & FBT was down 67% at Rs 1.20 crore. Loss at PAT level was down 26% at Rs 88.11 crore. The share of profit of Associates was Rs 1.03 crore and minority interest share of loss stood at Rs 1.47 crore. The resultant net loss stood at Rs 85.61 crore down 28%. Reported net loss was down 28% at Rs 85.59 crore.

For the half year ended September 2009, NDTV reported 13% growth in operating income at Rs 271.06 crore. There was loss at operating level at Rs 122.30 crore on the back of cost cutting initiatives. As a % of sales, production expenses decreased 860bps at 49.8%, staff costs was down 1370bps at 34%, marketing & promotions expenses was down 1100bps at 37% and other expenditure was down 840bps at 24.2%.

The other income decreased 54% at Rs 5.46 crore. The interest cost increased 72% at Rs 39.68 crore and depreciation charge increased 30% at Rs 18.90 crore, resulting at loss on PBT before EO level at Rs 175.42 crore up 193%. EO for the period of Rs 642.53 crore pertains to profit on stake sale in subsidiary. Loss at PBT after EO was Rs 175.42 crore against profit of Rs 408.63 crore in the corresponding period previous year. Tax provision including current tax, deferred tax & FBT was credit at Rs 0.16 crore against tax provision of Rs 2.89 crore. Loss at PAT level was Rs 175.26 crore against profit of Rs 405.74 crore in the corresponding period previous year. The share of profit of Associates was Rs 3.14 crore and loss pertaining to minority interest stood at Rs 3.03 crore. This resultant net loss stood at Rs 169.05 crore against profit of Rs 407.49 crore in the corresponding period previous year. Reported net loss of Rs 169.03 crore against profit of Rs 407.27 crore in the corresponding period previous year.

Business Performance

NDTV 24x7 has consolidated its position as the Clear and Emphatic leader in the English News space. The latest survey by Nielsen (UMAR survey) shows NDTV 24x7 with a viewership share of 60% while Times Now is at 28% and CNN-IBN at 12%.

NDTV India has now improved its standing to become the 3rd most popular Hindi news channel according to Nielsen. NDTV India is the most credible Hindi news channel.

NDTV Profit has held its viewership despite new entrants and remains the clear and distinct number 2 in the Business News space.

Shareholding Pattern

As at September 30, 2009, foreign investors hold 18.89% (22.94% at end of sequential quarter), Promoters hold 63.16% (63.17% at end of sequential quarter), MFs/FIs & Banks hold 3.86% (2.43% at end of sequential quarter), and others hold 13.08% (11.46% at end of sequential quarter).

Valuation

The company's shares are trading on the bourses at Rs 141.