News Broadcasting
IBN18: Losses rise; operational efficiency improves
MUMBAI: Things appear to be looking up at an operational level for IBN18 if one considers the company’s financial results for the year ended 31 March 2010. There has been a healthy jump in revenues and a slight fall in costs on a standalone basis. This, after last fsical’s operational losses, is a positive sign. However, from the shareholders viewpoint further improvements will have to be done by the management since IBN18’s overall net loss has widened to Rs 821 million in the year, as compared to Rs 682.21 million in FY09.
The standalone results include the performance of the two news channels CNN IBN and IBN7.
The company has posted a 15.9 per cent jump in the revenue for the fiscal at Rs 2.1 billion, as compared to last fiscal’s Rs 1.81 billion. Also its expenses have dipped marginally to Rs 2.37 billion from Rs 2.41 billion in FY09.
IBN18’s other income rose considerably this fiscal at Rs 536.51 million, as compared to Rs 39.86 million. Interest charges have also shot up and at Rs 433.92 million these are 126.6 per cent higher than FY09 where they were Rs 191.5 million. For FY10, the company posted an operating profit (Ebitda) of Rs 415.89 million as against an Ebitda loss of Rs 391.32 million.
On a consolidated basis, IBN18’s revenue rose considerably from Rs 1.83 billion in FY09 to Rs 6.03 billion FY10, mainly because of accrual of its JV partner Viacom18’s revenue to its balance sheet. However, it also added to the expenses of the firm at Rs 6.55 billion, as against Rs 2.57 billion in FY09. The net loss the firm made on a consolidated basis is Rs 1.1 billion in FY10, up from last fiscal’s 920 million. However, after adding the other income of Rs 548 million in the fiscal, the company has turned Ebitda positive at Rs 239.61 million, as against an operating loss of Rs 512.31 million in previous fiscal.
On a consolidated basis, IBN18 has included the financial results of its 50 per cent joint venture stakes in Viacom 18 and IBN Lokmat. Viacom18 which has had a net loss of Rs 429.9 million contributed Rs 168.8 million to IBN 18’s consolidated net loss in FY10. IBN Lokmat on the other hand sustained a net loss of Rs 210.9 million and contributed a further Rs 105.4 million to the firm’s consolidated net loss.
One of the reasons the company’s net loss in FY10 has gone up even though its operational workings have improved, is due to a provision made for an expected diminution in value of investments, to the tune of Rs 658.94 million on a standalone basis and Rs 658.1 million on a consolidated basis.
IBN18’s share price closed at Rs 83 on the Bombay Stock Exchange on Friday.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
