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Network18 Group's TV & digital businesses show strong growth

New launches successful, expects near to medium term softness on advertising front

BestMediaInfo Bureau | Delhi | May 11, 2012

The Network18 Group has reported consolidated revenues of Rs 659.5 crore for Q4 2011-12 (ending March 31, 2012), a growth of 63 per cent over same quarter last year. However, the Operating Profit for the quarter was in the negative at Rs 127.43 crore. The Net Profit for the quarter was also in the negative at Rs 199.63 crore.

The TV18 business (both News and Entertainment) exhibited growth momentum despite the challenging advertising environment for the industry and reported revenues stood at Rs 348.7 crore for the quarter, a growth of 16 per cent over the corresponding quarter last year on a pro forma basis.

Digital content and e-commerce business grew to Rs 67.1 crore for the quarter, a 37 per cent growth over the same quarter last year.

Announcing the results, Raghav Bahl, Managing Director, Network18, said, “FY12 was a truly transformational year for Network18. Against the backdrop of challenging macroeconomic headwinds, we consolidated, grew and invested in our core businesses. We announced the proposed strategic stake acquisition in ETV and a plan to induct significant equity in the group. These plans when consummated will catapult us into the forefront of the Indian media industry with a debt-free balance sheet and a fully built out television and digital footprint. Given the regulatory push for digitisation and our transformed group structure, FY2013 promises to be an exciting year for us at Network18.”

Commenting on the results, Sai Kumar, Group CEO, said, “In the year gone by, we invested in scaling our e-commerce businesses and in expanding our television channels bouquet with the launches of History TV18, Comedy Central, Sonic, Colors HD, CNBC-TV18 Prime HD, and the proposed strategic stake acquisition in Eenadu news and entertainment channels. We now believe that our bouquet straddling news and entertainment across national and regional geographies is a compelling offering and is suitably placed to make the most of the upcoming digitised environment. Our subscription revenues have grown substantially over last year and we see this trend continuing as our revamped distribution organisation is now supported by a positive regulatory environment.

Sai added that going forward “we expect near to medium term softness on the advertising front but are confident of delivering a strong operating performance”.

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