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Imagine Showbiz Channel will rebrand as Big Magic

Discussion in 'TV Channels News' started by Raja, Feb 16, 2011.

  1. Raja

    Raja Dream Shine

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    Reliance Broadcast Network expects to turn net profitable as it seeks other businesses to add power to its radio muscle by June, its top executive told Reuters late on Tuesday.
    The company, earlier known as Reliance Media World, has been in the red ever since it listed on the bourses in December 2009. However, Big FM, its radio business, which contributed 69% to its December-quarter revenue, turned operationally profitable in the quarter with a revenue jump of 25%.

    Shares in the firm reversed losses to rise as much 4% to Rs 75.9 in a flat Mumbai market on the news.
    "I think radio will probably go down to 50% and television will play a larger role and out-of-home will also become significant over the next one year or so," Chief Executive Tarun Katial said in an interview late on Tuesday.
    "I think it will take a quarter or two," Katial said, adding radio business was already EBIT positive and higher growth from a couple of other businesses would be the right booster.
    Reliance Broadcast operates Big Street for out-of-home advertising, Big Live for experiential marketing, Big Digital for advertising on the mobile and online platforms.
    Last year, the firm formed an equal joint venture with CBS Studios International, a division of CBS Corp, to enter the market with three English-language television channels.
    Reliance Broadcast, part of the Reliance ADA Group, posted a loss of Rs 4.59 crore in their first quarter ending December on net sales of Rs 67.1 crore.
    The company recently acquired Imagine Showbiz Ltd from Cinestar Advertising Pvt Ltd and plans to rebrand the channel as Big Magic.


    Expanding bandwidth

    Reliance Broadcast plans to spend about Rs 200 crore to Rs 250 crore in capex and operating expenses on the upcoming Phase 3 FM auction, Katial said.
    The FM radio Phase 3 auction will see an additional 700 radio stations in operation, with a focus on smaller cities and towns.

    "I think the bidding should happen in the next quarter."
    The company has a gross debt of Rs 105 crore and a cash balance of Rs 30 crore, it said in a conference call with analysts on Tuesday.
    Katial said the firm has enough headroom for raising debt and will ideally look to fund the auction via debt and then, if needed, tap the capital markets.
    The company has an enabling resolution to raise as much as Rs 500 crore through a qualified institutional placement, he said.


    http://www.moneycontrol.com