Broadcasting company TV Today Network said it has decided to write off nearly Rs 273 cr of accumulated losses at its Mail Today newspaper business and merge it with the parent company for better synergies.
TV Today Network runs one of India’s most popular television network, including the channels India Today and Aaj Tak.
The move is likely an attempt to cut losses at its newspaper division that was started around ten years ago.
Like its competitor DNA, Mail Today was launched just before the global financial crisis of 2008 hit the media sector hard in India, and was not able to hit its revenue or profitability targets.
Mail Today was launched with a 26% equity participation by the Daily Mail of the UK. However, in its latest filing, TV Today Network described Mail Today Newspapers Pvt Ltd as its wholly owned subsidiary.
With the newspaper and print sector in a permanent decline, the company seems to have decided to cut losses by combining its operations with its television news operations.
The move comes as both the TV and the newspaper businesses are getting an increasing portion of their revenue from the online medium, and could achieve greater profitability by integrating the online operations.
The merger of the newpaper business with the TV business will “bring editorial content and business synergy,” TV Today Network said.
The newspaper business of Mail Today Newspapers Pvt Ltd had a turnover of Rs 31 cr in the last financial year, and accounted for about 5.4% of the consolidated revenue of TV Today Networks
Both TV Today and Mail Today are part of the Living Media Group, which was founded in 1975 and headed by Aroon Purie.