Reliance MediaWorks Q3 net loss at Rs 151 cr

Media and entertainment firm Reliance MediaWorks' (RMW) today posted net loss of Rs 151.11 crore for the third quarter ended December.

Its net loss was Rs 57.04 crore in the October-December quarter of the 2010-11 fiscal.

Reliance MediaWorks Q3 net sales declined 3.69% to Rs 207.34 crore, as against Rs 215.30 crore in the same quarter last fiscal, it said in a filing to the BSE.

Domestic film releases and broadcast services industry showed a marginal dip for the quarter.

"The above numbers for Q3 include charge off of Rs 8 crore on account of start-up expenses with respect to VFX and 3D Conversion outsourcing businesses, against an order book position of over Rs 200 crore annually," it said.

Interest costs would sharply reduce on completion of fund-raising exercises that are being examined, it added.

The company is soon likely to raise Rs 500 crore through a rights issue.

RMW said its exhibition business achieved cash break-even during the quarter.

"With commencement of large commissioned orders, creative restoration and media services showed a sharp upswing at Rs 26 crore and cash break-even in third quarter as compared to cash operating loss of Rs 10 crore in trailing quarter," it said.

The company is also in the process of transferring its cinema exhibition and film and media services into separate 100% subsidiaries.

Shares of the company today ended at Rs 88.10, up 1.09% from the previous close on the BSE.