TV18 will spin off Net business
DNA reports: Indian media company the Television Eighteen (TV18) is spinning off its internet division as a separate company. The move is a consequence of the internet division attaining significant revenue growth. The division – which has portals like Moneycontrol.com and Commoditiescontrol.com, clocked revenues of Rs 6.03 crore ($1.34 million) for FY05-06, up up 480% from Rs 1.04 crore ($230,000) in FY04-05.
Haresh Chawla, CEO of TV18 Group, said,
“The new wholly owned subsidiary will aim at imparting focus and unlocking value in the Internet business. Besides, it will allow raising funds in the future.”
The new subsidiary will be in place in a couple of months. The group had earlier announced its foray into multiple Internet verticals (by acquiring 50 per cent in the Indian operations of Jobstreet.com). The group had earlier announced its foray into home shopping network with the help of SAIF Partners, which was looking to leverage TV18’s network of five channels (CNBC-TV18, CNN-IBN, Awaaz, Channel 7 and SAW) and six internet properties (moneycontrol. com, ibnlive.com, poweryourtrade.com, commoditiescontrol.com, yatra.in and Jobstreet India).
TV18 Group is one media company that has grown tremendously fast, and I admire them for this. The company as a whole has recorded a turnover of Rs 152 crore for the whole year of 05-06. Its net profits jumed 112% compared to 04-05 at Rs 52 crore. And these numbers are excluding that of CNN-IBN and Awaaz channels.