The first quarter results of the new fiscal for print and digital media firm Infomedia18 do not paint a rosy picture. The company has suffered 74.5 per cent rise in standalone net loss of Rs 10.69 crore in the quarter ended June, 2011, up from Rs 6.12 crore in the same quarter last fiscal.
Business directories, new media and publishing businesses were considered as 'Discontinuing Operations' in the June quarter, following the announced demerger into Network 18 Media & Investments Ltd.
It is now learnt that only Infomedia's printing press will remain with the company, but this may be sold off as well, the company has stated.
Television18 India Ltd-owned Infomedia18 runs print, digital and mobile properties such as Burrp!, Askme, Yellow Pages, Overdrive, Burrp! 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. Network18 has now extended its financial support to the company.
The restructuring scheme is subject to further approval of the Delhi High Court.
Standalone net sales for the company remained steady, gaining 0.17 per cent year-on-year to Rs 23.22 crore.
Total expenditure rose 20.01 per cent to Rs 34.72 crore, as compared to the same quarter last fiscal. Accumulated losses for the quarter stood at Rs 13.47 crore.
In the quarter, Infomedia18 utilised an aggregate sum of Rs 10.94 crore.
Segment-wise revenues fell for the print business from Rs 11.53 crore in the same quarter in fiscal 2010 to Rs 10.2 crore while the publishing business saw 24.79 per cent rise in revenues, from Rs 12.06 crore to Rs 15.05 crore.
In the year ended March, 2011, Infomedia18 had experienced a fall in the net loss to Rs 30.65 crore from Rs 50.03 crore.
Standalone net sales were also up at Rs 14.09 crore, from Rs 10.72 crore in fiscal 2010.
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.