MUMBAI: Consolidating its transition to a digital media company from a pure television play, New Delhi Television’s (NDTV) digital business has shown a growth of 51 per cent YoY.
In Q1-2016, the company’s digital and e-commerce revenues account for 21 per cent of total group topline, up from 13 per cent, last year. This reflects the ongoing commitment and investments of the NDTV group into building key digital assets.
However, in Q1-2016, NDTV reported a loss of Rs 24.3 crore as compared to Rs 1.5 crore of last year. Of the Rs 24.3 crore loss, Rs 11 crore pertains to the e-commerce business.
Speaking exclusively to Indiantelevision.com, NDTV CEO Vikram Chandra says, “Last year Q1 results of NDTV was one of the best quarters since inception generally for Television business Q3 and Q4 are stronger compared to Q1 and Q2.”
“One of the biggest achievements for us in this quarter is the fact that we successfully closed the funding of our two new ventures Gadgets 360 and Fifth Gear Auto. We have put in constant efforts since the last two years to enhance our digital business and valuation and we are extremely happy to have quality investors investing in the two new projects,” he adds.
The group has raised funds at a combined valuation of $80 million, wherein $50 million was allocated for Gadgets expertise and $30 million for the Fifth Gear Auto venture. NDTV’s other e-commerce venture, Indiaroots also raised an additional $5 million.
“Overall NDTV’s digital business has expanded to over $160 million, which shows our emphasis towards digital,” asserts Chandra.
The investors who invested in NDTV’s e-commerce ventures Gadgets and Car & Bike include: Inflexionpoint co-founder John Scully, Genpact founder Pramod Bhasin, Sixth Sense Ventures founder Nikhil Vora, former Unilever chairman Vindi Banga, M&S Partners founder and director Hiro Mashita and other high-net-individuals (HNIs).
The total revenue generated by the group from its various businesses in the current year stands at Rs 125 crore compared to Rs 151 crore of last year. According to the financial analysis, the group has also cut down its expenses too shows the financial analysis of Q1 2015 as the expenses registered in the current quarter is Rs 140.3 crore compared to Rs 141.7 crore of last year.
The company’s marketing spends have gone up to Rs 21.98 crore in the quarter as compared to Rs 19.43 crore last year.
