Reliance Broadcast to enter Sri Lanka with CBS, stock gains 10%

Mumbai: Reliance Broadcast Network Ltd signed a deal with Lanka Broadband Network to launch in Sri Lanka three channels of BIG CBS, its joint venture with CBS Studios International, a division of CBS Corp.

The move, which helped to push up Reliance Broadcast’s shares by more than 10 percent, marks the Indian company’s entry into Sri Lanka.

The three English entertainment channels - BIG CBS Prime, BIG CBS Love and BIG CBS Spark - will be launched later in Bangladesh, Nepal, Bhutan, Maldives, Pakistan and Afghanistan, Reliance Broadcast said on Monday.

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Reliance Broadcast did not disclose financial details of its deal with Lanka Broadband other than to say the arrangement was based on a fixed-fee model.

“The subscription model will contribute incrementally to the bottom-line,” said Vishal Rally, business head of BIG CBS Networks. “With no licensing requirements or programming and technical costs, the revenue model is robust, adding to our top-line.”

Reliance Broadcast is in talks with several private equity firms and strategic investors to raise between 3 billion and 4 billion rupees through an equity issue.

Shares of the Reliance Broadcast, which has a market value of about $87 million, were up 10.8 percent at Rs 59.65 rupees in late morning trading. The overall market was up about 1 percent.

Reuters