Case Study
News broadcasters on recovery path in FY’10
Reeling under recession and intense competition in the genre, news broadcasters looked at 2009 as a year when they had to correct their business models. The chief executive officers of these companies came out with harsh prescriptions: cut jobs, reduce news gathering costs and exit from non-core businesses.
The measures, some of which were really painful, are beginning to improve the health of their balance sheets. These companies are still not out of the woods but they are surely on recovery path. While revenues grew slowly during the fiscal ended March 2010, operational efficiencies have improved and net losses have narrowed.
Revenue rebounds but growth path still slow
The combined turnover of seven listed news broadcasters stood at Rs 16.53 billion in FY’10, up 7.01 per cent over the earlier year, as the advertising market eased and the recovery became stronger in the last two quarters.
IBN18 (CNN-IBN and IBN7) and TV Today (Aaj Tak, Headlines Today Tez and Delhi Aaj Tak) grew their topline by 16 per cent and 12 per cent respectively while NDTV saw a modest 5 per cent increase in its income.
BAG Films and Media, which runs News24 and E24, and IBN Lokmat showed a revenue growth of over 121 and 258 per cent respectively, albeit on a lower base.
TV18, however, should be worried. The company, which runs business news channels CNBC-TV18 and CNBC Awaaz, saw its revenue dip marginally by 2.35 per cent as competition in the genre put pressure on ad rates.
Revenue (in Rs million)
Companies tighten costs
Companies continued to focus on cost-cutting drives, the main corrective step taken after being on an expansion overdrive. Expenses dropped to Rs 14.48 billion, from Rs 16.41 billion in FY09, falling by 11.81 per cent between the fiscals.
BAG Films, a new entrant that was going through an investment phase in FY’09, really clamped down on costs and brought it down by almost 66 per cent.
Expenses (in Rs million)
Other players who were on an austerity drive were TV18, which cut costs by 27 per cent, and NDTV (22 per cent). Only Zee News Ltd’s expenses saw a miniscule 0.01 per cent increase.
At the operational level, the news broadcasters had a remarkable turnaround story between the two fiscals as operating profit rose 378.33 per cent in FY’10 over the year-ago period. The FY’10 operating profit stood at Rs 2.59 billion as compared to operating loss of Rs 930.82 million.
The companies who had the highest operational efficiency in the fiscal are Zee News Ltd (Rs 812.1 million), TV18 (Rs 648.1 million) and TV Today (Rs 415.89 million).
Operationg Profit (in Rs million)
News broadcasters stare at losses
Despite a drastic improvement in operational efficiencies, news broadcasters still stare at losses. The loss leaders during the fiscal were IBN18 (Rs 820.99 million), TV18 (Rs 597.3 million), IBN Lokmat (Rs 210.88 million) and NDTV (Rs 205.2 million).
Zee News Ltd and TV Today, however, stayed profitable.
In FY’11, most news broadcasters expect to be in the black amid restructuring, cost-cuts and operational efficiencies.
Mumbai: GIVA, a premium jewellery brand aiming to make authentic, elegant, and fine silver jewellery accessible in India, launched their latest line of Rakhi collections, for the upcoming Raksha Bandhan festivities in India. Renowned for redefining the art of presenting exquisite sterling silver jewellery, GIVA takes immense pride in launching an emotive campaign that honours the profound sibling connection. Aptly named “Ties of Love,” the campaign transcends being a mere collection; it is an exploration of the emotional connection that siblings share. This campaign artfully encapsulates the essence of sibling relationships through meticulously crafted 925 silver jewellery rakhis, serving as poignant symbols of affection, protection, and enduring love.
GIVA has embraced a digital advertisement that eloquently portrays the deep and meaningful love that siblings share. This ad serves as a heartfelt depiction of the profound bond that exists between brothers and sisters, further resonating with the brand’s dedication to celebrating and cherishing these special relationships. The ad beautifully captures the essence of a sibling duo celebrating a long-distance Raksha Bandhan and highlights the range of emotions amidst virtual and real-time celebrations. The campaign’s strategic blueprint leverages modern communication platforms such as influencer marketing, Youtube and Instagram advertising.
In a strategic move, GIVA enlisted the support of prominent social media influencers and celebrities Ridhhi Dogra, Pooja Gor and Sreejita De to convey the campaign’s key messages to their target audience. To honour this enduring bond between siblings, GIVA has created an Instagram filter named #TiesofLove. This filter is a tribute to the unbreakable bond we share with our siblings and with this, GIVA aims to witness countless siblings sharing their own delightful and hilarious anecdotes all through August.
GIVA has introduced an exclusive Rakhi collection complemented by exquisite fine silver jewellery choices, with prices beginning at just Rs 899 only. This assortment encompasses a diverse range of options to cater to various preferences, featuring personalized rakhis designed to strengthen the sibling bond. These personalised rakhis can showcase intricately embedded names of brothers and sisters, alongside specially crafted Lumba rakhi designs for beloved sisters-in-law. Moreover, their innovative Convertible rakhis offer a unique transformation into stunning pendants, reflecting a blend of sustainability and style.
GIVA founder Ishendra Agarwal said, “GIVA’s Ties of Love Rakhi campaign embodies GIVA’s mission: celebrating the timeless with a modern twist. This year, we sought to extend Rakhi’s warmth beyond a day by crafting convertible rakhis that can transform into cherished pendants. We also extended our shipping to over 20+ countries to truly celebrate sibling love across borders.
It is more than a campaign. It’s a call for togetherness. It’s a shared tribute to love, tradition, and cherished moments. Our curated collection of gift hampers, personalised rakhi and rakhi gifts are a testament that gifts should know no boundaries.”
To extend a perfect gesture towards both sisters and brothers-in-law, their Bhaiyya-Bhabhi combo stands as an ideal selection. The Rakhi Box is an exclusive gifting choice that presents a personalized rakhi and kumkum, encapsulating a heartfelt touch. Additionally, they also have Bracelet rakhis that seamlessly fuse tradition with fashion, adding to their charm.
Ensuring no one is left out, GIVA has an exclusive Kids’ collection that presents a delightful array of rakhis, starting at just 699 INR. This collection is tailored for younger siblings, capturing the spirit of sibling love playfully.
GIVA’s Raksha Bandhan campaign seeks to highlight the profound emotional value of the rakhi tradition in India, positioning the brand as a provider of thoughtfully crafted and meaningful silver jewellery. The brand’s objective is to establish a heartfelt connection with customers, nurturing a deeper understanding of sibling connections while showcasing the brand’s impeccable artistry. GIVA has always prioritized individuality and self-expression in its design ethos. This Raksha Bandhan, the brand is particularly attentive in presenting a diverse range of top-notch, hypoallergenic rakhis, all certified by GIVA. This effort is dedicated to cherishing the enduring bond, as precious as silver, that exists between siblings.
