The Hindu Business Line : Raj Television Q1 net rises to Rs 5.6 cr

Chennai, July 29 Raj Television Network Ltd has reported a net profit of Rs 5.6 crore on a turnover of Rs 18 crore for the first quarter ended June 30, 2008.

According to Mr M. Raajhendhran, Managing Director of the company, the 8 per cent growth in net profit and over 15 per cent growth in turnover over that of the previous comparable period, “is despite slowdown in economy, and rising content and manpower cost.”

Though macro economic fundamentals continue to inspire confidence, the recent slowdown in the industrial sector, coupled with rising input costs and credit squeeze may have an impact on the media sector’s ability to sustain the growth momentum in the medium-term, he said.

The company recently launched a news channel – Raj News. “This is expected to increase ad revenues to the company from the next quarter this year. That apart, we also expect revenue to flow in from Arasu Cable Corporation from the third quarter,” said Mr Raajhendhran. Explaining this, he said as Arasu Cable Corporation ensures transparency “there is no question of under declaration”.

Film production

Raj Television, apart from having a bouquet of four channels, recently ventured into production of Telugu and Tamil movies. It has earmarked Rs 30 crore for film production foray, and also has signed on a couple of directors for the purpose. It is currently working on four movies, which are set for release in the coming quarter.

For the year ended March 31, 2008, it posted gross revenue of Rs 53.8 crore and a net profit of Rs 13.5 crore. The board has also recommended 15 per cent dividend for the year. Earnings per share work out to Rs 10.14.