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Small
screen, big trouble: TV 18 down 25, zooms in on costs
Vandana
Gombar in New Delhi
Seeing recessionary economic trends translating into tougher
times ahead, Television Eighteen (TV 18) has let go some 25
employees in the last few months and frozen new recruitment.
TV 18, which has a 49 per cent stake in CNBC India and operates
the channel, has also asked all departmental heads to compulsorily
lop 20 per cent off their operating costs.
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‘Web’site?
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| After government Websites, it is now
the turn of corporate sites turning into “cobweb sites.”
The channel’s eyeball share update at tv18online.com pertains
to the period July-September 2000. The message from Mr
Bahl on the site refers to a record 4 million page views
on the firm’s financial portal—moneycontrol.com—in November
2000. The company’s fiscal year, according to the ‘frequently
asked questions’ corner, still ends on September 30, even
though it has already reverted to the April-March financial
year. |
“If we want to ride out this economic downturn,
we also now need to relentlessly focus on controlling costs—that
is the mandate from the current environment and our overseas
partner, CNBC Asia,” TV 18 managing director Raghav Bahl said
in a message to his team last week.
TV 18 CEO Haresh Chawla confirmed to The Financial Express
that employee strength was down from 265 some months ago to
240 now. However, he dubbed it natural attrition.
TV 18 revenues declined by 15 per cent in during the first
half of the year (April-September). Net profit for the six
month period, before extraordinary items and tax, is down
17 per cent.
“We must keep our operations lean and mean,” said Mr Bahl,
asking all departmental heads “to find savings of 20 per cent
in their operating costs.”
Other measures to cut costs include a complete halt to extending
loans to employees. “All fresh and/or pending/unsanctioned
loans shall be suspended,” Mr Bahl said. Cost-cutting has
also been urged in the usage of facilities like cell-phones
and company cars. “We need to carry on operations by talking
and travelling 20 per cent less,” he said. The company has
also decided to grant leave to employees only in the most
“exigent circumstances.” These measures are proposed to be
in place at least until March 31, 2002.
CNBC India, which is distributed by Sony Entertainment Television,
gets 75 per cent of its revenues through advertising while
the balance, since it is a pay channel, is through subscription.
TV 18 scrip, which crossed an all-time high of Rs 2,300 in
February 2000, closed at 67.10 rupees on the Bombay Stock
Exchange on Monday.
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