Network18 Q1 FY12 revenue up 14%

Television Business revenues stood at Rs. 266 crores; a growth of 13% over Q1 FY11.

BestMediaInfo Bureau | Delhi | August 12, 2011

Network18 Group has announced its results for the quarter ending June 30, 2011. The “Scheme of Arrangement? between Television Eighteen India Limited, Network18 Media & Investments Limited, IBN18 Broadcast Limited and other group companies and their respective Shareholders and Creditors announced on July 7, 2010 was completed during the quarter. The Network18 Group, as envisaged by the Scheme, has now been re-organised into two entities – TV18 and Network18 and the ensuing release is in accordance with the new group structure.

The company has reported consolidated revenues of Rs. 363 crores for the first quarter of the year 2011-12, up 14%, compared to the corresponding quarter last year, 2010-11. Network18's Television Business (News and Entertainment) turned in a steady performance as reported revenues stood at Rs. 266 crores for the quarter, a growth of 13% over the corresponding quarter last year (on a proforma basis).

The Digital Content and eCommerce Business grew to Rs. 52 crores for the quarter growing 23% over the same quarter last year (on a proforma basis).

Announcing the results, Raghav Bahl, Managing Director, Network18 said, “Network18 has turned in another solid quarter across our Television and Digital businesses. I am particularly pleased to note that our eCommerce portfolio is exhibiting strong consumer traction and growth. It is pertinent to note that the global macro economic environment is volatile and challenging; while there may be some near term uncertainty, I believe that the long term Indian growth story remains intact. ”

Commenting on the results for the quarter, Haresh Chawla, Group CEO, said, “We have delivered steady growth across all our businesses and maintained their market leading positions. Going forward, we expect some near term softness in advertising revenues driven by domestic and global factors. For the year, we expect continued profitable growth in our existing operations offset by some investments in building out our portfolio of television properties to further consolidate their market position.”

Standalone performances:

Television Business:

Steady quarter with consolidated revenues at Rs. 266 crores and an operating profit of Rs. 24 crores.

• Consolidated Revenues were up 13% from Rs. 237 crores against the corresponding quarter last year on a proforma basis.
• Operating Profits rose to Rs. 24 crores during the quarter, up 17% against the corresponding quarter last year on a proforma basis.

I. News Operations

a. Business News Operations delivered a steady performance against the backdrop of volatile markets and revenues increased by Rs. 4 crores (Q1FY12 over Q1FY11).

- Q1 FY12 revenues on a reported basis stood at Rs. 68 crores, up 6.5% against Rs. 64 crores against the corresponding quarter last year. Operating profit stood at Rs. 16 crores in Q1 FY12.

- Our Business News Channels – CNBC TV18 and CNBC Awaaz continued to be market leaders with 53% market share during the quarter.

b. In the General News Operations, CNN IBN maintained its leadership position as the channel of choice for English audiences in a competitive market.

- Q1 FY12 revenues on a reported basis stood at Rs. 62 crores, up 14% against Rs. 54 crores in Q1 FY11. The operations broke even during the quarter.

II. Entertainment Business - Viacom18 continued on a steady trajectory in Q1 FY12.

- Q1 FY11 revenues on a reported basis stood at Rs. 273 crores, up 18% against Rs. 238 crores in the corresponding quarter last year. Our operating profit stood at Rs. 18 crores for the quarter.

III. Digital Content and eCommerce

Network18 is the largest Indian Digital Media company both in India and the World in terms of unique visitors as per Comscore. Our revenues for the quarter for the segment stood at Rs. 52 crores, registering a growth of 23%, over the corresponding quarter last year on a proforma basis.

a. Web18 recorded revenues of Rs. 24 crores, a growth of 31% over the corresponding quarter last year on a proforma basis.

b. Newswire 18 delivered revenues of Rs. 11 crores for the quarter.

c. HomeShop18 continued to scale rapidly across all key operating parameters continuing to deliver 'customer service excellence' across all touch points. HomeShop18 recorded revenues of Rs. 17 crores for the quarter, a growth of 13% over the corresponding quarter last year on a proforma basis.

IV. Allied Businesses

a. Print Operations – Infomedia18 and Forbes India

- Infomedia18 and other print operations recorded revenues of Rs. 71 crores in Q1FY12.

b. Capital18 Investee Companies

- Capital18 investee companies continued their growth momentum during the quarter.

c. Other Allied Businesses

- Sport18 conducted the highly successful 2nd edition of the BSA Hercules India Cyclothon in Mumbai. I also celebrated the first Cycle to work day in May 2011 by simultaneously conducting events in Mumbai, Pune and Bengaluru, as an extension to the Cyclothons.

- E18 launched a new event property, Governance 2.0 in association with the Department of Information Technology, Ministry of Communications and IT. This conference organized in May 2011 brought together the Government and IT industry players to discuss IT requirements of the Government and the latest technologies, products, solutions and services available.

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