Business – India;Viacom18 eyes full-fiscal profitability in 2011
MUMBAI: Viacom18 has a debt of Rs 1 billion and is cruising along to being profitable for the full fiscal in 2011 as it sees a high revenue growth under Hindi general entertainment channel Colors, a source familiar with the development said.
The joint venture company between Viacom and IBN18 Broadcast, which houses a bunch of channels including MTV, Nick and Vh1, will continue to be positive in the fourth quarter but will end up posting losses for FY’10.
“The third quarter of this fiscal has been peak for Viacom18 in terms of revenue and expenses due to the festive season and big ticket programming on Colors. While the fourth quarter will be lower in revenue, costs will also be less. Viacom18 will stay profitable in the fourth quarter. The target is to be Ebitda positive for the entire fiscal in FY’11,” the source adds.
For the third quarter of the current fiscal, Viacom18 had posted a revenue of Rs 2.66 billion and turned black with a net profit of Rs 56.34 million. Ebitda for the quarter stood at Rs 91.19 million.
Colors, according to market estimates, has clocked around Rs 2.1 billion in the third quarter and has turned Ebitda positive. “This, however, will not indicate the run rate for the entire fiscal as the quarter has been peak revenues and costs for the channel. Going forward, the aim of Colors will be to stay profitable,” the source adds.
Colors is the flagship channel in the Viacom18 bouquet.
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