Deccan Chronicle unit sees NYT deal rev at 1.5 bln rupee

MUMBAI (Reuters) - Newspaper publisher Deccan Chronicle Holdings Ltd expects its unit Sieger Solutions Ltd to get 1.5 billion rupees in revenue through an outsourcing deal with the New York Times Co, an official said on Monday.

Sieger, which runs internet properties, posted a net profit of 350 million rupees on a revenue of 720 million rupees in FY08, Managing Director P.K. Iyer told analysts on a conference call.

"We are going to be running all their internet properties out of India, which is all their websites as well as some of the development activities of their's connecting to the digital space," he said.

Sieger Solutions currently owns and runs three internet properties and will add new sites this year, Iyer said.

Earlier this month, Deccan Chronicle said it was in talks with New York Times to sell a 5 percent stake in Sieger Solutions.

"It is going through their board meeting day after tomorrow...once that is approved I can tell you about the valuations," he said, referring to the stake sale.

Deccan Chronicle posted a net profit of 2.7 billion rupees on net sales of 7.8 billion for the year to March 2008. Net profit grew 68 percent and net sales grew about 41 percent driven by advertising and volume growth, Iyer said.

The company's financial daily, Financial Chronicle, is published in association with the International Herald Tribune in Mumbai, Chennai, Bangalore and Hyderabad. Delhi was also a potential market, he said.

It has also launched the Bangalore edition of Deccan Chronicle, its English daily.

In April, Deccan Chronicle increased advertisement tariffs across all editions by 30 percent. This will mitigate raw material costs seen in the April-June quarter, Iyer said.