Infomedia 18 Continues To Bleed in Q2; Net Loss Doubles Y-o-Y
The publishing business unit continued to be a drain on the financials of print and digital media firm Infomedia 18 that saw net loss almost double to Rs 13.8 crore for the second quarter over the year ago period while recording around 30 per cent sequential rise in loss compared to the first quarter ended June 30, 2011. The accumulated losses of the company have crept up to Rs 148.52 crore as of September 30, 2011.
This is in continuation with a similar deteriorating performance in Q1.
Television18 India Ltd-owned Infomedia 18 runs print, digital and mobile properties such as Burrp!, Askme, Yellow Pages, Overdrive and Burp! TV, as well as business magazines Modern Pharmaceuticals, Modern Medicare, Modern Machine Tools, Chemical World and Automonitor. Television18 has been merged into the digital media group Network18 Media Pvt Ltd as of June 10, 2011.
The Network18 group runs the Internet and mobile division Web18 Software Services Ltd, HomeShop18.com, wire services unit Newswire18, Television Eighteen India Ltd and a joint venture called Viacom18.
Infomedia 18's income from operations shrunk by a third over Q2 last year but rose around 32 per cent sequentially to Rs 31.22 crore.
The biggest hit in revenues came from shrinking income from publishing business, although printing segment also saw lower revenues compared to Q2 last year. While the publishing business slipped into deeper loss, profit in printing business also more than halved for the quarter.
In July 2010, the board of the company announced and approved a Scheme of Arrangement between Infomedia 18 and Network 18 Media & Investments wherein the business directories unit, the new media business and the publishing business of Infomedia 18 shall be demerged into Network 18 Media & Investments while the printing press business will continue to remain with the company.
The restructuring has not been completed and so these businesses have been clubbed as 'Discontinuing Operations'. While the printing press business has been considered as a 'Continuing Operations' for now, the firm is also looking to sell it off.
Comparing the 'Continuing Operations' doesn't paint any better picture for shareholders either. Revenues from the businesses which stays (for now) with the company has declined from Rs 13.35 crore in Q2 of FY'11 to Rs 12.35 crore for the second quarter ended September 30, 2011. Net profit on a comparable basis also shrunk by almost two thirds to just Rs 66 lakh for the quarter over the year ago period.