RIL move on media assets to create cleaner structure


Mumbai, Feb 21 | The move by Reliance Industries Limited (RIL) to aggregate the media assets in Network 18 will create a cleaner structure and is easier to manage with the reduction of listed entities, according to a report by BofA Securities.

RIL announced that it would aggregate the media assets outside the Jio umbrella under one single entity of Network18. The companies to be combined include TV18, Den Networks & Hathway Cable.

From RIL perspective this creates a cleaner structure and is likely easier to manage (as it reduces listed entities), the report said.

Media is small part of RIL’s EV but it helps offer bundled products in future and better analyze customer trends, it added.

RIL’s shareholding (through Independent Media Trust) in the new entity will fall to around 64 per cent from 75 per cent. The proposed merger creates a media company with Rs 80 billion annual revenue and Rs 120 billion market cap.

The company will have 13 per cent TV market and 6.7 per cent share of wireline users. It will be also be the No 1 cable distributor with 27 million households. Jio’s fiber broadband however remains separate under Jio. The report said that subject to receipt of approvals, the management expects the deal to be consummated by Q2FY21.

The note views that the move improves revenue mix but has limited synergies. From RIL’s perspective this creates a cleaner structure and is easier to manage (as it reduces listed entities).

“Between content and distribution, we consider distribution to be the more important component for RIL’s media business as it generates higher margins and return ratios vs. content which could be aggregated”, the report said.

The merger helps improve capital structure as combined entity will be debt free and has balanced mix of subscription (53 per cent) and Ad (47 per cent) in its revenues.

From NW18 perspective, this helps reduce dependence on ads and helps especially in times of slower GDP growth.

The report adds that synergies aren’t much except removal of overheads. Also NW18 channels could be included in Den/Hathway packs at lower prices.

“We consider RIL via the combined entity to emerge as one of the dominant entities in the media space and through the merged entity gives an opportunity to invest in the high growth segments,” it addd.

Media contributes to 2.1% of RIL’s EV and is not a big driver. It however helps RIL improve customer stickiness with potential to offer bundled products in future and better analyze customer trends/segmentation, the report added.

Source: IANS

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Covid-19 Lockdown : Greenwood High International School comes forward to help the needy

Covid-19 Lockdown : Greenwood High International School comes forward to help the needy

Bangalore, April 02, 2020 : The nationwide lockdown to combat Coronavirus outbreak in the country has led to severe difficulties for the poor and homeless people. In an effort to help the needy, Greenwood High International School, has come forward to do their bit to the cause. The school have undertaken the initiative to prepare food for 300 underprivileged families every day and distribute  in and around Sarjapur area with the help of Sarjapur police station. This would be a continuous support from the school authority towards the needy people until the lockdown ends. While distributing the food, the school authority also followed the social distancing norms and ensured that necessary precautionary measures like masks and gloves were used in the entire process to provide clean and hygienic food to the people.

Speaking on this initiative, Ms. Niru Agarwal, Trustee, Greenwood High said: “As much as we believe in inculcating the values of benevolence and philanthropy among our students, we practise these ourselves too. Greenwood High has always been compassionate to help those in need and we continue to do so. We are mindful of contributing to the society in multiple ways and are proud to leverage our sources towards such an important cause. Several NGOs, individuals and businesses are pitching in to help the citizens and government through various initiatives with the hope that humanity would survive these dreadful times of coronavirus onslaught. We believe that only by active collaboration between all the members of the society, we will be able to overcome the impact of this pandemic.”


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