The Hindu Business Line : Global Broadcast posts profit in Q4

New Delhi April 30 Global Broadcast News Ltd (GBN), the company behind the English news channel CNN-IBN, has reported its first net profit of Rs 2.78 crore for the fourth quarter ended March 31. Revenues were at Rs 29.06 crore.

The company reported a loss of Rs 32.03 crore for the year ended March 2007, against a loss of Rs 46.08 crore for the previous financial year. Revenues were at Rs 79.93 crore against Rs 6.22 crore for the previous year.

"The last quarter has seen GBN turn into black, and that too within 15 months of launch of CNN-IBN," said Mr Sameer Manchanda, Joint Managing Director, GBN. "The figures go to show that advertisers are willing to pay for quality and content," he added, pointing out that the revenues were primarily from advertising. Revenues from the CAS distribution system are yet to come in.

"We are looking forward to further strengthening our visibility, keeping in tune with the exponential growth expected in the media industry," said Mr Manchanda. The company and its merchant bankers are finalising plans for an international listing in the next 4-5 months to raise up to $200 million for expanding its portfolio of channels, according to Mr Manchanda.

Jagaran TV Private Ltd, owners of the Hindi news channel IBN-7 however reported a loss. And for GBN, which holds 49 per cent stake in BK Fincap which in turn owns Jagaran TV Private Ltd, this amounts to a loss Rs 4.39 crore. The company's recent IPO raised Rs 105 crore out of which Rs 64.58 crore was used to acquire stake in BK Fincap.

Shares of GBN rose 7.02 per cent to Rs 618.90 as against a previous close of Rs 578.30 on the Bombay Stock Exchange.