Network18 and TV18 turn in strong operating performances for FY13
TV18 reports Rs. 112.1 crores of operating profit for the year against an operating loss of Rs 61.8 crores for the previous year
BestMediaInfo Brueau | Delhi | May 13, 2013
The Network18 Group announced its results for the Financial Year and quarter ending March 31, 2013, today.
Key Highlights for FY13 and Q4 2012-13
- Consolidated revenues for year 2012-13 stood at Rs. 2400.8 crores on a reported basis, growing by almost 25% over previous year. The operating losses are down sharply from Rs. 296 crores to Rs. 39 crores.
- Consolidated revenues for the fourth quarter of the year stood at Rs. 679.5 crores on a reported basis. Our reported operating profit for the quarter was Rs. 12.7 crores. The company turned in a profit after tax of Rs. 0.5 crores for the quarter.
- TV18 Business (both News and Entertainment) was on a strong growth trajectory this year. Reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs. 1699.1 crores for the year. Reported operating profit for the year was Rs. 112.1 crores as against an operating loss of Rs 61.8 crores for the previous year. Continuing broadcasting and motion pictures operations turned in a strong performance with a profit of Rs. 172.1 crores during the year (excluding one-time expenses/revenues and losses towards new launches and discontinued operations) more than doubling over Rs. 79.4 crores last year. Net Distribution Income turned positive for the year with a swing of Rs. 116.9 crores over the previous year.
- Reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs. 474.7 crores for the quarter. Advertising Revenues grew 9% year on year. Reported operating profit for the quarter stood at Rs. 34.6 crores and the company turned in a profit of Rs. 17.3 crores after tax for the quarter.
- Digital Content and eCommerce Business grew to Rs. 400.9 crores, registering a growth of 193%, over the previous year (adjusted for the sale of Newswire18). The segment reported revenues of Rs.110.4 crores for the quarter, a growth of 200% over last year.
- Pursuant to the completion of the Rights Issue during the course of the year, the company has successfully deleveraged its balance sheet. The net debt at a consolidated level now stands at Rs. 211 crores.
- During the year, Network18 profitably sold their entire stake in Newswire18, divested our Yellow Pages and Askme businesses and diluted our majority stake in Bookmyshow. These transactions are in line with their stated objective of divesting stakes in non-core assets to create value for our shareholders and allowing infusion of growth capital in these assets to propel them to the next stage. The aforementioned transactions cumulatively added Rs. 180 crores to their profits for the year and raised Rs. 235 crores of cash for the Network18 group. Post the balance sheet date, The company also entered into an agreement with OCP Asia Ltd. to raise growth capital of USD 30 Million in our premier virtual commerce business – HomeShop18.
The significant swings in TV18 Business (both News and Entertainment):
- Operating performance/EBITDA: Delivers 112 crores in FY13. A swing of 174 crores from (62) crs to a 112 crs year on year.
- De-leveraged balance sheet: Net Debt levels reduce to 197 crores from 868 crores a year ago, a 77% drop in Net debt levels (Ending Mar 31st 2013 v/s Mar 31st 2012)
- Net profitability trajectory: Turns a Net Profit for Q4 at 17 crores (In Q3, Net Profit was 21 crores).
- Net Distribution Income (Subscription revenue – carriage expenses and commissions) turns positive for the year at 15 crores from a (101) crores in FY12, a positive swing of 117 crores.
The significant swings in NETWORK18 Group business:
- Growth & Operating profitability: Consolidated revenues up 25% YoY, at 2400 crores, Operating losses cut down by 87% at (39) crores in FY13 v/s (296) crores in FY12
- Digital Content and ecommerce: Businesses grew to 400 crores in revenue, registering a growth of 193%, over the previous year (adjusted for the sale of Newswire18)
- De-leveraged balance sheet: The net debt at a consolidated level now stands at Rs. 211 crores (Ending Mar 31st 2013) from 2130 crores (Ending Mar 31st 2012), a 90% drop in Net Debt levels
- Profitable Monetization of non-core assets: During the year, Network18 profitably sold its entire stake in Newswire18, divested its Yellow Pages and Askme businesses and diluted its majority stake in Bookmyshow. These transactions were in line with the stated objective of divesting stakes in non-core assets to create value for shareholders and allowing infusion of growth capital in these assets to propel them to the next stage. The aforementioned transactions cumulatively added 180 crores to profits for the year and raised 235 crores of cash for the Network18 group.
Announcing the results, Raghav Bahl, Managing Director, Network18 said that, “We are delighted to inform our investors and stakeholders that at both Network18 and TV18, we have successfully deleveraged our balance sheets and have delivered strong operating performances. Network18?s and TV18?s Net Debt now stands at less than one-fifth of the peak levels and our interest payments have come down sharply. We are confident that we are now entering a sustained value creation phase in our journey as we continue to strengthen our existing operations and consolidate our regional acquisition.”
B Sai Kumar
Commenting on the results for the quarter, B. Saikumar, Group CEO, said, “We are extremely pleased that our digital and broadcast operations have turned in a sustained and healthy operating performance during the year despite softness in the advertising environment. Our e-commerce businesses have turned in another stellar year and our digital content businesses continue to grow steadily. We are now on a solid Net Distribution Income trajectory and while our flagship channels like CNBC TV18/Awaaz, Colors and CNN IBN continue to perform admirably, we are also enthused by the performance of recent launches and the motion pictures business. Inspite of near term challenges given the macro-economic headwinds, we are hopeful of delivering a strong year ahead.”