Reliance Broadcast Network Ltd expects to turn net profitable as it seeks other businesses to add power to its radio muscle by June, its top executive told Reuters late on Tuesday.

The company, earlier known as Reliance Media World, has been in the red ever since it listed on the bourses in December 2009. However, Big FM, its radio business, which contributed 69 percent to its December-quarter revenue, turned operationally profitable in the quarter with a revenue jump of 25 percent.

Shares in the firm reversed losses to rise as much 4 percent to 75.9 rupees in a flat Mumbai market on the news.

I think radio will probably go down to 50 percent and television will play a larger role and out-of-home will also become significant over the next one year or so, Chief Executive Tarun Katial said in an interview late on Tuesday.

I think it will take a quarter or two, Katial said, adding radio business was already EBIT positive and higher growth from a couple of other businesses would be the right booster.

Reliance Broadcast operates Big Street for out-of-home advertising, Big Live for experiential marketing, Big Digital for advertising on the mobile and online platforms.

Last year, the firm formed an equal joint venture with CBS Studios International, a division of CBS Corp, to enter the market with three English-language television channels.

Reliance Broadcast, part of the Reliance ADA Group, posted a loss of 45.9 million rupees in their first quarter ending December on net sales of 671 million rupees.

The company recently acquired Imagine Showbiz Ltd from Cinestar Advertising Pvt Ltd and plans to rebrand the channel as Big Magic.

EXPANDING BANDWIDTH

Reliance Broadcast plans to spend about 2 billion to 2.5 billion rupees in capex and operating expenses on the upcoming Phase 3 FM auction, Katial said.

The FM radio Phase 3 auction will see an additional 700 radio stations in operation, with a focus on smaller cities and towns.

I think the bidding should happen in the next quarter.

The company has a gross debt of 1.05 billion rupees and a cash balance of 300 million rupees, it said in a conference call with analysts on Tuesday.

Reliance Broadcast Network Ltd expects to turn net profitable as it seeks other businesses to add power to its radio muscle by June, its top executive told Reuters late on Tuesday.

The company, earlier known as Reliance Media World, has been in the red ever since it listed on the bourses in December 2009. However, Big FM, its radio business, which contributed 69 percent to its December-quarter revenue, turned operationally profitable in the quarter with a revenue jump of 25 percent.

Shares in the firm reversed losses to rise as much 4 percent to 75.9 rupees in a flat Mumbai market on the news.

I think radio will probably go down to 50 percent and television will play a larger role and out-of-home will also become significant over the next one year or so, Chief Executive Tarun Katial said in an interview late on Tuesday.

I think it will take a quarter or two, Katial said, adding radio business was already EBIT positive and higher growth from a couple of other businesses would be the right booster.

Reliance Broadcast operates Big Street for out-of-home advertising, Big Live for experiential marketing, Big Digital for advertising on the mobile and online platforms.

Last year, the firm formed an equal joint venture with CBS Studios International, a division of CBS Corp, to enter the market with three English-language television channels.

Reliance Broadcast, part of the Reliance ADA Group, posted a loss of 45.9 million rupees in their first quarter ending December on net sales of 671 million rupees.

The company recently acquired Imagine Showbiz Ltd from Cinestar Advertising Pvt Ltd and plans to rebrand the channel as Big Magic.

EXPANDING BANDWIDTH

Reliance Broadcast plans to spend about 2 billion to 2.5 billion rupees in capex and operating expenses on the upcoming Phase 3 FM auction, Katial said.

The FM radio Phase 3 auction will see an additional 700 radio stations in operation, with a focus on smaller cities and towns.

I think the bidding should happen in the next quarter.

The company has a gross debt of 1.05 billion rupees and a cash balance of 300 million rupees, it said in a conference call with analysts on Tuesday.

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