Reliance MediaWorks (RMW) expects to double the share of its films & media services vertical in its total business mix to 60 per cent.
A listed company, RMW is into cinema exhibition (through Big Cinemas), films & media business and television (through Big Synergy) and has now around 14 lines of business.
While Reliance MediaWorks has been profitable at the operating level, it has not yet broken even and reported a loss of Rs.90 crore in the second quarter of 2011-12. It is now initiating restructuring of its business and is targeting a net profit in 2012-13.
Anil Arjun, CEO, told this correspondent that “over the last three years, our business mix has been dominated by cinemas (60 per cent), films & media (30 per cent) and TV (10 per cent). Going forward, with our significant thrust on our business process outsourcing (BPO) 2D/3D and special effects offerings, we will add significantly to our films & media business, which, by 2012-13, should go up to 60 per cent. By then, our Big Cinema will contribute around 30 per cent and Big TV will remain the same.”
The business has now 530 screens world-wide with 265 in India, 200 in the U.S. and 65 in Malaysia.
To date, most of RMW's funding has been through debt which is the reason for high interest and depreciation costs.
However, it has announced a Rs.500-crore rights issue which could happen by March 2012 and could correct the debt bias.
Mr. Arjun said the company had almost completed all its big ticket capital expenditure plans.
Keywords: Reliance MediaWorks