MUMBAI: Reliance MediaWorks (RMWL), Reliance Group’s film and entertainment services company is undergoing a business restructuring in order to better position the company to pursue strategic growth opportunities.
The board has approved the proposal to explore various options for restructuring the business, including creating of subsidiaries for Exhibition and Film and Media services divisions.
Anil Ambani-led Reliance Group (then Reliance ADAG) had bought the controlling stake in the company way back in 2005 (Adlabs). The facilities included a motion picture processing lab in Mumbai and 24 cinema screens located in Maharashtra.
RMWL CEO Anil Arjun said, “The company has witnessed a phenomenal growth in the scale of its operations in last 5 years. This strategic structuring initiative will enable us to effectively pursue the best business opportunities available to each operating unit independently, and also enable our Company to remain well-positioned and appropriately structured for sustainable, long-term growth.”
Meanwhile, RMWL has posted a consolidated net loss of Rs 1.20 billion in the quarter ended 30 September. In the corresponding quarter of the previous fiscal, the net loss was at Rs 447 million.
RMWL clarified that the jump in net loss is the result of the “investment and stabilisation of business verticals, resulting in increased interest and depreciation charge.”
Total income of the company fell by 4.78 per cent in the quarter to Rs 2.35 billion (from Rs 2.46 billion). However, expenses surged 16 per cent to Rs 2.92 billion (from Rs 2.52 billion).
The company suffered a loss of Rs 267.61 million from its theatrical exhibition business segment on a revenue of Rs 1.62 billion. RMWL deployed Rs 8.38 billion towards this segment.
From the Film production services segment, the company suffered a loss of Rs 205.71 million on a revenue of Rs 466.09 million.
The only segment which was profitable was the TV / Film production and distribution segment which posted a profit of Rs 100 million on an income of Rs 279.11 million.
