Television and Digital businesses on steady growth track; group invests in new channel launches and e-commerce
BestMediaInfo Bureau | Delhi | February 13, 2012
Network18 Group has announced its results for the quarter ending December 31, 2011 (Q3 2011-12). Consolidated revenues for the third quarter stood at Rs 503.8 crore, up 24 per cent, compared with the corresponding quarter last year. Operating profit was in the negative at Rs 18.9 crore against Rs 30 crore net profit in the corresponding quarter in the previous fiscal.
The TV18 business (both News and Entertainment) was steady despite the challenging advertising environment for the entire industry and revenues stood at Rs 342.8 crore for the quarter, a growth of 9 per cent over the corresponding quarter last year on a proforma basis.
However, the Digital Content and eCommerce business grew to Rs 58.4 crore for the quarter, a growth of 20 per cent over the same quarter last year (on proforma basis).
The Operating Margin in the News & Infotainment business was 6 per cent this quarter, down from 19 per cent in the corresponding quarter in previous fiscal.
Announcing the results, Raghav Bahl, Managing Director, Network18, said, âIn the quarter gone by, notwithstanding the challenging macroeconomic environment, Network18 continued to perform steadily and our business continued to consolidate and grow. We invested in further building our television bouquet with four successful channel launches. At the beginning of the year, we also announced a transformational deal which will result in making the group debt free and expanding our regional TV footprint. Over the next few quarters, we will work towards a successful consummation of the acquisition while we continue to build and consolidate our existing businesses.â
Sai Kumar, Group CEO, said, âIt has clearly been a sluggish phase for the industry as a whole. Advertising revenues continue to exhibit lacklustre growth and may continue at the same pace over the next few months. Our subscription revenues are on track as projected. During the last quarter, our profits from continuing operations were offset by largely one-time costs incurred towards investments in the expansion of our television channel portfolio and the conscious impairment of our film library given the deferment of our Hindi Movies channel. We strengthened our television stable further with launch of new services such as History TV18, Sonic and our HD bouquet comprising Colors HD, History TV18 HD and CNBC-TV18 Prime HD.â