MUMBAI: Reliance Industries-owned Indiawin Sports, the company that holds franchise rights for Mumbai Indians, has posted a net loss of Rs 3.9 million for the fiscal ended 31 March 2012 and could break even in FY?13.

The company?s turnover stood at Rs 1.7 billion during the season 4 of IPL, higher than Chennai Super Kings? (CSK) Rs 1.4 billion. The running costs are, however, more than CSK?s which has achieved break-even status.

Indiawin has narrowed its fiscal loss while upping its revenue. For the fiscal ended 31 March 2011, the company had posted a net loss of Rs 154.2 million on a turnover of Rs 1.12 billion.

The company had total assets of Rs 1.34 billion in FY?12 compared to Rs 652.8 million a year ago. Negative reserves were at Rs 906.1 million, from Rs 900.22 million in FY?11.

Total liabilities stood at Rs 1.34 billion while it had a capital of Rs 26.5 million.

RIL, which has 98.3 per cent stake in Indiawin Sports, had bought the IPL Mumbai franchise for $112.9 million for a period of 10 years. Teesta Retail owns 1.7 per cent stake.

The major revenue stream for IPL franchises include income from central sponsorships and central broadcasting besides team sponsorships, gate receipts, in-stadia advertising, merchadise sales and media tie-ups.

Major cost heads are franchise fee, players salaries, travel costs, team promotion, stadium fess and other administration costs.

For Mumbai Indians, the franchise fee per year is $11.19 million while the IPL has fixed salary cap for players at $9 million. Other costs go up or down from season to season.

Last year, the franchise had Hero Honda (now Hero MotoCorp) as team sponsor, MasterCard as founding sponsor, and Bridgestone as team sponsor while Royal Stag, Kingfisher, Loop Mobile, Coca Cola, adidas, Dheeraj Realty and Air India were the official partners.

This year Mumbai Indians has roped in a new sponsor, Dewan Housing Finance Corporation, which has come as associate sponsor. It has also inked a licensing pact with Disney to launch co-branded merchandise products.

The merchandise revenue of Mumbai Indians is expected to climb in comparison to last year?s revenue of Rs 50-60 million.

Mumbai Indians, despite its loss in qualifiers, is also expected to rake in the moolah from gate receipts due to record spectator turnout for all its home matches.

The franchise has made significant gains due to meticulous focus on nurturing a core team under Sachin, strong fan engagement efforts, sponsorship and merchandising.

Reliance Industries had bought the Mumbai franchise for $111.9 million in 2008. The franchise was valued at $57.1 million by brand valuation firm Brand Finance in 2011.

MUMBAI: In a swift move, India?s richest man Mukesh Ambani marks his entry into the media business.

Ambani-led Reliance Industries (RIL) said Tuesday it will invest in Raghav Bahl-promoted Network18 Media & Investments and TV18 Broadcast through an Independent Media Trust.

As per the deal, the subsidiary will fund promoter entities of the TV18 group to subscribe to rights issues. In return, it will get access to content from TV18 group for its 4G broadband network that Reliance is all set to roll out this year.

Bahl will continue to retain management and 51 per cent control over the two media entities.

Meanwhile, boards of both -- Network18 and TV18 -- have approved rights issue of Rs 27 billion each. TV18 Rights Issue proceeds, at a price of not more than Rs 40 per equity share, will be utilised to repay the existing debt, fund the acquisition of ETV Channels and fund working capital needs.

Meanwhile, Network18 rights issue proceeds, at a price not more than Rs 60 per equity share, will be utilised to repay the existing debt and subscribe to the Rs 14 billion of the rights Issue of TV18.

The net aggregate rights issue of both Network18 and TV18 will result in a fund raising of Rs 40 billion.

The current promoter entities of Network18 will acquire shares worth Rs 17 billion of this rights issue, for which they have entered into an arrangement with RIL?s trust.

"The promoter companies of Network18 and TV18 and the Trust have entered into a Term Sheet under which the Trust would be subscribing to the Optionally Convertible Debentures (OCDs) to be issued by the Promoter Companies. Reliance will leverage its deep understanding of the Indian markets?consumer insights, technological expertise, and the ability to build and manage scale?to make this a "win-win" partnership. This will create value and be accretive to the shareholders of RIL," RIL said in a press release.

Meanwhile, TV18 will acquire the TV business of the Eenadu Group.

The TV18 board announced that the company plans to attain 100 per cent interest in regional news channels in Hindi namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan and ETV Bihar and ETV Urdu channel, 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya and 24.50 per cent interest in ETV Telugu and ETV Telugu News.

TV18 will have board and management control of ETV news channels and ETV non Telugu GEC channels. The board has approved an outlay of up to Rs 21 billion for the acquisition.

TV18 also has an option to buy the balance 50 per cent interest in ETV non Telugu GEC channels and additional 24.50 per cent interest of ETV Telugu Channels.

Ernst & Young (E&Y) acted as advisors for financial and tax due diligence and valuation of the assets. The legal due diligence was carried out by Khaitan & Co, TV18 said.

After the deal, on a combined basis, TV18 will be offering a mix of national and regional channels catering to diverse genres like Hindi and regional entertainment; general news in English, Hindi and regional languages; business news in Hindi, English and regional languages; music; kids; devotional and infotainment channels.

As a part of the deal for acquisition of ETV Channels, Network18 and TV18 have also entered into a Memorandum of Understanding with Infotel Broadband Services Limited (?Infotel?), a subsidiary of RIL. Under this agreement, the companies and their associates will have the right to distribute the content of all the media and web properties of Network18 and programming and digital content of all the broadcasting channels through 4th Generation Broadband Network of Infotel. Infotel shall have preferential access to this content on a first right basis as a most preferred customer.

Network18 founder, editor and MD Raghav Bahl said, ?This is a truly seminal moment in the 18-year-old history of Network18/TV18. By inducting such a significant amount of equity, our Balance Sheets will become among the strongest in the industry. Also, by acquiring this strategic control over several ETV Channels, TV18 will have a bouquet of leading television channels. Riding on the imminent digital wave, I am convinced that this acquisition is a significant move which will catapult TV18 into the forefront of India?s broadcasting industry.?

"Further, on a debt free basis, both Network18 and TV18 hope to strengthen their position in various media segments like news and entertainment broadcasting, consumer internet, digital and print publications, filmed entertainment, home-shopping, e-commerce and other emerging businesses."

On the news, both Network18 and TV18 stocks ralled and hit the upper circuit in the early hours of trading on the BSE. While Network18 scrip closed at Rs 46.4 per share, TV18 closed at Rs 33.70 per share on Tuesday.

Also Read:

Mukesh Ambani?s big media bet

TV18 to snap up ETV, plans rights issue

Reliance Industries in deal with TV18 Group?

MUMBAI: The market is speculating Mukesh Ambani?s Reliance Industries to invest in Network18 Group to fund the acquisition of regional television broadcaster ETV. The investment is likely to be made through a subsidiary.

The value of the ETV deal is pegged at around Rs 25 billion. Though TV18 and Network18 have proposed rights issue, the acquisition price of ETV is too high and needs external support.

When contacted, Network18 chief executive officer B Sai Kumar declined to comment on the issue. I Venkat, director on the Eenadu board, said he was not aware of the development.

A formal announcement is expected Tuesday.

Network18 and TV18 founder-promoter Raghav Bahl needs to reduce debt that remains high. The acquisition of ETV will help TV18 to increase its subscription revenues.

Shares of TV18 Broadcast rose 5.75 per cent on the BSE while Network18 was up 6.78 per cent.

RIL will be rolling out its broadband services later this year and needs exclusive content to pump through them.

Also Read:

TV18 to snap up ETV, plans rights issue

MUMBAI: Anand Bazaar Patrika (ABP)‘ English magazine, Fortune India has released the Fortune India 500 list for 2011. The list will be published with its December issue.

Fortune India 500 list is dominated by the oil and gas sector. It is led by Indian Oil Corporation, Reliance Industries, and Bharat Petroleum Corporation.

The banking sector has dropped in rankings, with the top two lenders, SBI (ranked 4) and ICICI Bank (12), slipping in 2011. 28 of 46 banks have fallen; only 15 have gone up on the list.

The gainers are automobile firms and their ancillary suppliers.

The government continues to play a big role in business, with a total of 82 government-owned companies on this year‘s list.

Fortune India magazine editor DN Mukerjea said, "The Fortune India 500 is a celebration of the size and might of India‘s companies. Over the last year, the 500 largest corporations have grown sales by 21.5 per cent; the median growth has been even higher, at about 25 per cent. Such statistics are impressive, no doubt."

"There also appears to be a fair degree of churn-there are 57 new companies, around 11 per cent of the list. That‘s always a good sign because it indicates that the laggards are falling by the way, to be replaced by smarter and hungrier ones. The good news, however, is that many of the Fortune India 500 companies are now beginning to shape the world‘s opinion of India for the better. And they may just be doing a better job than their Chinese counterparts", Mukerjea added.

ABP president - English magazines Pavan Varshnei added, "We are extremely proud to present this impressive second edition of the Indian Fortune 500 list. Most of the companies have managed to retain their top-positions as it was in the last year. They have contributed progressively towards the growth of India‘s GDP and the economy."

Other individual data points include year on year change on total revenues, net operating income, profits, profit as percentage of revenues, assets and networth, dividend, and total salaries.

The issue also ranks top players across different sectors including airlines, automobiles, banking, cement, consumer durables, pharmaceuticals, FMCG, infrastructure and development, media, oil and gas, power, real estate, retail and telecommunications among others.

The top ranking companies of Fortune 500 India list are: Indian Oil Corporation, Reliance Industries, Bharat Petroleum, State Bank of India, Hindustan Petroleum, Tata Motors, ONGC, Tata Steel, Hindalco Industries, Coal India, NTPC, ICICI Bank, Bharti Airtel, Larsen & Toubro, Essar Oil, SAIL, BHEL, MRPL, Maruti Suzuki India, TCS.

The Fortune India 500, published by Fortune India magazine is an annual list compiled on the basis of latest sales and gross revenue figures.