CyberMedia revenues up 8 p.c in 08-09

BANGALORE, INDIA: CyberMedia, the largest specialty media house in South Asia, has recorded 8 per cent growth in its revenues to achieve Rs 121.68 crore for the year 2008-09 compared to Rs 113 crore posted during the same period in 2007-08.

The Board of Directors of the company, who met today, considered the amalgamation of CyberMedia India Online Limited (CIOL) with the parent company.

The Board suggested that the CyberMedia put up a consolidated scheme of amalgamation with the other subsidiaries that is Cyber Media Digital Limited, Cyber Media Events Limited, and Cyber Holdings Limited.

The company has continued its overall strategy of de-risking the business by expanding the media services business as well as reducing the dependence on print ads. Media services now account for 48 per cent of the total turnover as against 34 per cent in the previous corresponding period.

The US recession impacted the two acquisitions made by the company in the US. Consequently, the service business profitability was impacted adversely. The group suffered losses of $ 1.8 m (loss before tax) in its US operations.

Measures have been initiated in H2 2008-09 to address profitability concerns. The impact is likely to be visible in H1 of 2009-2010.

The slowdown in the Indian economy also affected the media business due to reduced media spends. However, the company has maintained its market share. In line with global trends its product “Global Services” has moved completely online. The company has also merged “Voice & Data Connect” into “Voice & Data”. This should improve the profitability of the media business.

The company has initiated cost control measures and organizational restructuring, which should result in an improved situation in 09-10, said the company statement.