Digital and e-commerce revenues now account for 21 per cent of total group topline (up from 13 per cent in the same period last year) as NDTV consolidates its transition to a digital media company
BestMediaInfo Bureau | Delhi | August 6, 2015
New Delhi Television (NDTV) has reported net loss of Rs 24.3 crore for the first quarter ended June 30, 2015. Operating revenues for Q1 FY16 were pegged at Rs 125 crore, as opposed to the Rs 151.6 crore in the corresponding quarter last fiscal.
There was hardly any difference in the expense with the group spending Rs 140.3 crore this quarter vis-à-vis Rs 141.7 crore in Q1 FY15.
NDTV’s core business in TV media and related operations earned revenues of Rs 117 crore in Q1 FY16, a fall from the revenues of Rs 144 crore in the corresponding quarter of the previous fiscal.
Meanwhile, NDTV.com and related digital businesses showed a revenue growth of 51 per cent YOY.
NDTV further consolidates its transition to a digital media company from a pure television play by moving further into the e-commerce space. This reflects in the group’s digital and e-commerce revenues, which now account for 21 per cent of total group topline (up from 13 per cent in the same period last year) reflecting the ongoing commitment and investments of the NDTV Group into building key digital assets.
Vikram Chandra, Group CEO, NDTV, remarked, “NDTV is gradually moving from broadcast to a major player in the e-commerce and digital space. While we suffered losses in the current quarter, but if you look at the e-commerce business, even the biggest players suffer losses. Today, we’ve managed to expand our capital by $80 million. Earlier, we had added close to $85 million towards our e-commerce. The Q1 net loss notwithstanding, the story today is how we’ve taken a giant step in our e-commerce business, how we managed to raise our brand value.”
In a first round of investor funding NDTV has raised funding at a combined valuation close to $80 million for its new e-commerce ventures in Gadgets and Car & Bike. The investors include: Inflexionpoint (Cofounded by John Scully, former Apple CEO), Pramod Bhasin (Founder, Genpact), Sixth Sense Ventures (Founded by Nikhil Vora), Vindi Banga (Former Chairman, Unilever), Hiro Mashita (Founder and Director of M&S Partners) and other HNIs.
This follows the success of NDTV’s earlier venture, IndianRoots, which raised an additional $5 million in funding at a valuation of $85 million from KJS Group. The funds were raised by Avendus Wealth Management. IndianRoots has clocked a GMV of Rs 21.7 crore this quarter, a growth of 550 per cent over the same quarter last year.