On standalone i.e. the news business, NDTV reported 3% rise in sales at Rs 84.98 crore with operating profit of Rs 9.26 crore against loss of Rs 6.08 crore in the corresponding quarter previous year. The net loss was down 91% at Rs 1.66 crore.

During the quarter, the Company, NDTV Networks Plc. and NDTV Lifestyle Limited (operating the lifestyle channel "NDTV Goodtimes") have reached a definitive agreement with Scripps Networks Interactive Inc., and its affiliate that will result in Scripps Networks acquiring a 69% stake in NDTV Lifestyle Limited, a subsidiary of NDTV Networks Plc. for a consideration of US$ 35 million. NDTV Networks Plc. will retain a 31% stake in NDTV Lifestyle Limited compared to 92% stake presently. The above agreement is subject to necessary regulatory approvals.

During the quarter, the Company and NDTV Networks Plc., have entered into an agreement with Turner Asia Pacific Ventures, Inc. ("TAPV") for the sale of most of its indirect stake in NDTV Imagine Limited ("Imagine"), which is held by its subsidiary NDTV Networks plc. The total transaction size is US$ 117 million and involves a sale of 76% of NDTV Imagine for a consideration of US$ 67 million together with the subscription to fresh shares in Imagine by TAPV for US$ 50 million. Prior to the issuance of primary shares to TAPV, NDTV Networks plc will retain a stake of 5% in Imagine. The transaction has received the approval from the board of Time Warner Inc (the parent of TAPV), and is awaiting necessary approvals from regulatory authorities. As per the said agreement, NDTV Networks Plc has agreed to provide interim funding to NDTV Imagine Limited for which it has taken a US$ 20 million loan facility from a bank. The Company has on behalf of its subsidiary given a corporate guarantee for this facility taken by NDTV Networks Plc, subject to necessary approvals.

During the quarter, the Company through its subsidiary NDTV Networks BV, has bought back NBC Universal's 26% indirect stake in its subsidiary NDTV Networks Plc.

During the quarter, NDTV Networks Plc. a subsidiary of the Company, has repurchased the US$ 100 million Step up Coupon Bonds due 2012. The Bonds have been repurchased for US$ 72.4 million financed through bank loans. The repurchase has allowed NDTV Networks Plc to significantly reduce its outstanding borrowings and also to cut down on interest burden. Consequent to the repurchase of the Bonds by NDTV Networks Plc, the restrictive covenants which were applicable have ceased, allowing NDTV Networks Plc and its subsidiaries flexibility for restructuring and financing the businesses including being able to access bank finances for working capital and other requirements. Further, an undertaking to provide a corporate guarantee given by the Company to repay the 40% of the outstanding Bonds has ceased to exist upon re-purchase of the bonds. The resulting gain on buy back amounting to Rs 128.28 crore (US$ 27.60 million). The Company has on behalf of NDTV One Holdings Limited given a corporate guarantee amounting to US$ 40 Million to secure the above bank loan taken by NDTV Networks Plc to finance the repurchase of bonds, subject to necessary approvals. Additionally, 30% of the equity share capital of NDTV Imagine Limited, NDTV Lifestyle Limited or NDTV Convergence Limited has been pledged by NDTV Networks Plc. for the said loan. Further, NDTV Studios Limited, an associate of the Company, has given an undertaking to purchase upto an agreed percentage of equity share of NDTV Imagine Limited, NDTV Lifestyle Limited or NDTV Convergence Limited, in the event of default by NDTV Networks Plc.

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.

For the quarter ended December 2009, NDTV reported 29% rise in operating income at Rs 167.06 crore. The loss at operating level decreased 54% at Rs 46.06 crore on the back of cost cutting measures initiated by the Company. As a % of operating income, production expenses decreased 1830bps at 40.6% and in absolute terms was down 11.3%, staff costs decreased 1860bps at 26.3% and in absolute terms down 24.6%, marketing & promotions expenses was down 1560bps at 29% and in absolute terms was down 16.3%, and other expenditure decreased 230bps at 31.6% and up 39% in absolute terms.

The other income increased 8% at Rs 1.47 crore, interest cost decreased 92% at Rs 1.27 crore on repurchase of step up coupon bonds and depreciation charge increased 11% at Rs 9 crore, resulting at loss on PBT before EO level at Rs 54.86 down 55% over the corresponding quarter previous year. EO for the period of Rs 128.28 crore pertains to gain on repurchase of step up coupon bonds. The resultant PBT after EO stood at Rs 73.42 against loss of Rs 122.81 crore in the corresponding quarter previous year. Tax provision including current tax, deferred tax was down 95% at Rs 0.13 crore on the back of abolition of FBT. PAT stood at Rs 73.29 crore against loss of Rs 125.34 crore in the corresponding quarter previous year. The share of profit of Associates was Rs 0.2 crore down 94% and minority interest share of loss stood at Rs 0.61 crore. The resultant net profit stood at Rs 74.10 crore against loss of Rs 120.80 crore in the corresponding quarter previous year.

For the nine months ended December 2009, NDTV reported 19% growth in operating income at Rs 439.45 crore. There was loss at operating level at Rs 167.03 crore down 46% over the corresponding period previous year on the back of cost cutting initiatives. As a % of sales, production expenses decreased 1230bps at 46.2%, staff costs was down 1560bps at 31%, marketing & promotions expenses was down 1290bps at 33.9% and other expenditure was down 440bps at 27%.

The other income decreased 55% at Rs 5.60 crore. The interest cost increased 7% at Rs 40.95 crore and depreciation charge increased 23% at Rs 27.90 crore, resulting at loss on PBT before EO level at Rs 230.28 crore up 35%. EO for the period of Rs 128.28 crore pertains to gain on repurchase of step up coupon bonds against Rs 642.53 crore pertains to profit on stake sale in subsidiary. Loss at PBT after EO was Rs 102 crore against profit of Rs 285.82 crore in the corresponding period previous year. Tax provision including current tax, deferred tax was credit at Rs 0.05 crore against tax provision of Rs 5.63 crore. Loss at PAT level was Rs 101.95 crore against profit of Rs 280.19 crore in the corresponding period previous year. The share of profit of Associates was Rs 3.38 crore and minority interest share of loss stood at Rs 3.64 crore. The resultant net loss stood at Rs 94.93 crore against profit of Rs 286.48 crore in the corresponding period previous year.

Business Performance

• NDTV 24x7 is the clear leader in the English News space as clearly established by the recent Neilsen UMAR survey which showed that the channel was the most watched with over 60% viewership.

• NDTV 24x7 won the Best News Channel award given by the Indian Television Academy(ITA).

• NDTV India, the group Hindi News channel improved its ratings and is widely recognized as India's most credible Hindi News Channel.

• NDTV Worldwide and Beximco Group, the largest private sector industrial conglomerate in Bangladesh which also manages the leading publication, The Independent, have come together to launch a 24 hour news and current affairs channel in Bangladesh, Independent Television.

• Ndtv.com crossed the 100 million page view mark for the first time in the month of December 2009.

• NDTV Social – a portal to connect NDTV journalists and anchors with viewers – was launched during the quarter. This is the first time anywhere in the world a media group has integrated its anchors, presenters, programmes and content into the social stream.

Shareholding Pattern

As at December 31, 2009, foreign investors hold 18.88% (18.89% at end of sequential quarter), Promoters hold 63.16% (63.16% at end of sequential quarter), MFs/FIs & Banks hold 3.99% (3.86% at end of sequential quarter), and others hold 13.97% (14.08% at end of sequential quarter).

Valuation

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