News Broadcasting
Revenue slowdown crimps TV Today’s profit growth
MUMBAI: A slowdown in revenue growth has crimped TV Today Network’s net profit in FY’09. For a company conscious of shoring up profitability at the cost of expansion for turnover growth, a 23 per cent fall is surely a setback.
While the company’s revenue grew at a steady clip over the last few years, it was unable to sustain the momentum in FY’09. Used to over 20 per cent growth over the last few years, TV Today posted a revenue growth of just 9 per cent in FY’09 amid a slump in the advertising spend among companies.
Total income stood at Rs 2.74 billion in FY’09, compared to Rs 2.51 billion a year ago. Expenses grew at the same rate as the last few years, from Rs 1.68 billion in FY’08 to Rs 2.05 billion in FY’09.
The chart below shows the company’s performance over the last few years.
31-Mar-09
31-Mar-08
31-Mar-07
31-Mar-06
Total Income (Rs millions)
2,741.98
2,514.20
2,024.40
1,678.90
YOY growth%
9.06
24.19
20.58
Expenditure (Rs millions)
2,059.02
1,685.10
1,372.00
1,075.20
YOY growth%
22.19
22.82
27.60
Net Profit (Rs millions)
335.5
435.5
310.9
277.7
YOY growth%
-23.0
40.1
12.0
An average performance by TV Today in the last two quarters of FY’09, as compared to the corresponding quarters of FY’08, has helped worsen matters.
The graph below shows the total income of the company across all quarters of FY’08 and FY’09. The dip in revenue towards the end of the year is evident from this.
The drop in profit is indicated in the graph below.
TV Today had incidentally lowered its expenses in the last quarter, perhaps in anticipation of tough times. The expenditure over the quarters is shown below.
Q1
Q2
Q3
Q4
Expenditure
551.69
588.9
579.24
531.8
TV Today has kept its expansion plans on hold, waiting for better market conditions. Till then, it will have to weather the rough weather.
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.
