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Star TV India aims to break even in 18 months

Rupert Murdoch-owned Star Television’s India operations are expected to break-even over the next 12 to 18 months. However, it may take up to two years after that for the broadcaster to wipe-off accumulated losses, which are in excess of $100 million.

News Television India chief executive officer Peter Mukherjea said, Star TV expects a 40 per cent jump in advertising and marketing revenue in 1999-2000 over the previous fiscal. Star’s financial year ends in June. The target for 2000-01 is pegged at 50 per cent over and above the current year.

Mukherjea said the company is yet to firm up its IPO plans. However, a consortium of FIs have been mandated to put a valuation of Star’s Indian operations. Though Mukherjea refused to give details of the evaluation exercise, he said results are expected over the next couple of months. He said Star is yet to take a call on the issue whether to link the Indian IPO to Star’s international public offer plans.

On launch of a business channel, Mukherjea said Star has been deliberating over the issue over the last six months. "We have been mulling over the matter for quiet some time. This is because the economics of running a business channel is quite different from that of a news and entertainment channel," he said. However, the company has not yet taken a decision on matter, he added.

Officials indicated that Star would be launching a Hindi movie channel by August this year. An education and health channel are expected to hit the small screen early next year. Talks are currently on to distribute Disney channel in India. Star TV officials indicated that in keeping with the localisation trend, Hindi-content in Star News may also be stepped up.

S. D.