X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Television 18 plans business portal - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Mar 10, 2000

    Television 18 plans business portal

    Television 18 (TV 18) plans to set up a vertical business portal. This would be via a 100% subsidiary of the company 90% of whose equity is owned by TV 18 and the balance by the company’s employees.

    The purpose of setting up a portal via a subsidiary is that the management did not think fit to burden the shareholders of TV 18 with the cost required for the marketing of the portal which would come to around Rs 500 m. The value for the shareholders would be derived as and when the subsidiary would go for a listing.

    The business model for the portal is based on the lines of a transaction based interaction. The company would tie up with brokerage houses and offer Internet trading. However, the management does not expect e–commerce to contribute much to the revenues. The management believes that there would be nearly 400 e–broking outfits and expects a severe shakeout in the sector. The company also plans to have an investment advisory team, which would advise investors in respect of their investments. The technology partners for the portal are Planet Asia while the web casting has been done by Pentamedia.

    TV 18 is looking at a model based on the lines of CNN and CNN.com where (say) a guest appears on CNBC (the channel in which TV 18 is a 49% stake–holder). It would be announced that if individual viewers want to chat with the guest they should log on to the Internet site.

    The management explained that TV 18 would remain a content provider for both business and the entertainment programmes. The copyright of the entertainment programmes that it produces for Star (Amul India Show, Kinetic Mega Show), Sony (Bhanwar) however, remains with the broadcaster. TV 18 earns margins ranging from 25–40% on such programming.

    As far the arrangement with CNBC India is concerned TV 18 gets to market 50% of the free commercial time (FCT) which works to four minutes per hour. The company plans to provide 12 hours of content to CNBC Asia. Even the revenue from the advertisements of MNCs accruing from the Indian operations accrues to TV 18. Apart from this the company gets 33% of its cost as margins. Thus this gives it an incentive to spend money adequately, if that is required for providing quality programming since its costs are covered. As per an arrangement the company is prohibited from doing business news programmes on BBC, CNN, Star and Bloomberg.

    The company has also ventured into bidding for FM radio broadcasting with Vertex Broadcasting Corporation a 50:50 joint venture with the Dabur group. The joint venture has already bagged frequencies to the Calcutta, Chennai, Vishakapatnam, Bhopal and Indore. The investment that the management envisages is around Rs 120–160 million over the next three years.

    The company has appointed Deloitte Haskins and Sells as its auditors and plans to have its accounts on US GAAP model. TV 18 is well in line to achieve its projections for the current year ending March 31, 2000 (Revenues: Rs 3.02 bn, Net profit: Rs 113.6 million).

     

     

    Equitymaster requests your view! Post a comment on "Television 18 plans business portal". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TRACK TV18

    MARKET STATS