Network18 in regional focus with an eye on profitability

Media conglomerate Network18 - on its way to a debt-free existence after stake sales to Mukesh Ambani-led Reliance group and two rights issues of shares - is looking at restoring operating margins across its news, entertainment and other business segments.

Media conglomerate Network18 - on its way to a debt-free existence after stake sales to Mukesh Ambani-led Reliance group and two rights issues of shares - is looking at restoring operating margins across its news, entertainment and other business segments.

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Network18's operating margin dipped below 10% in FY12, which worsened its debt situation.

"For the last few years at Network18 we have been working with a focus to become a big network," said B Sai Kumar, group CEO, Network18.

"We will now emerge as a profitable television company with equally large investments in digital content and e-commerce."

For FY12, the company saw its television segment's operating margin dip to 7% from 12% in FY11.

Sources within the company said it is looking at achieving a 25% margin across the entire television portfolio.

"For the next 3-4 years, we will focus on growth of margins rather than turnover," said Kumar Network18 is also gearing up to integrate with Eanadu TV and step up its regional focus.