Web18 Revenues Up 41%; Reports Operating Loss Of Rs 5.6 Crores
By Cerius Shah - Tue 29 Jul 2008 10:49 AM PST
Web18 revenues were up 41% from Rs 9.3 crores to Rs 13.1 crores year-on-year. However, operating loss reported was Rs 5.6 crores, up 58% from Rs 2.3 crores in the same quarter last year. Haresh Chawla, CEO, Network18, states they have planned a ‘big launch’ for In.com and intend to build audiences there. The investor update states TV18 plans to pump in Rs 700 crores of cash on its balance sheet to fund growth in TV, internet and print properties. Sources within Web18 indicate there aren’t any major expenses planned anytime soon, besides of course a marketing blitzkrieg for In.com. So consider a majority of this ‘war chest’ to be directed at the print industry as well as the TV business. Chawla also adds that the overall industry growth rate seems to be tempering down to 25% - 30% from a previous 50% YoY growth rate. With reference to revenues increasing 41%, do note that operating loss at 58% was higher than operating revenue. It seems Web18 is fine with burning topline as they ‘continue to develop and create new properties’, what would be interesting to note is if those rise in revenues convert into profits once investments plateau out.
Results Here
