Operating businesses turn in a strong quarter. Netwrk18’s operating profit for the quarter was Rs 10.6 crore. TV18 clocked operating profit of Rs 48.1 crore
BestMediaInfo Bureau | Delhi | January 19, 2013
The Network18 Group announced its results for the quarter ending December 31, 2012, today. Consolidated revenues for Q3 2012-13 stood at Rs 697.4 crore on a reported basis, a growth of about 52 per cent over same quarter last year. Reported operating profit for the quarter was Rs 10.6 crore. The company turned in a profit after tax of Rs 6.8 crore.
The TV18 business (both News and Entertainment) was on a strong growth trajectory this quarter. Reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs 512.4 crore for the quarter. The reported operating profit for the quarter was Rs 48.1 crore. The company turned in a profit of Rs 21.3 crore after tax.
The broadcasting and motion pictures operations turned in a strong performance with a profit of Rs 58.1 crore during the quarter, excluding one-time expenses/revenues and losses towards new launches and discontinued operations. Net Distribution Income turned positive while Advertising Revenues grew 10 per cent YOY.
The Digital content and eCommerce business grew to Rs 119.6 crores for the quarter, doubling over the same quarter last year.
Announcing the results, Raghav Bahl, Managing Director, Network18, said, “I am delighted to inform our investors and stakeholders that both our companies – Network18 and TV18 – have returned to profitability this quarter. Our recast balance sheets helped us rationalise our interest payouts and our Television and Digital assets turned in strong operational performances. We are now entering an exciting phase in our journey as we strengthen our existing operations and consolidate our regional broadcasting acquisition.”
Commenting on the results for the quarter, B Saikumar, Group CEO, said, “We are extremely pleased that all our broadcast and digital content operations grew their margins despite softness in the advertising environment. Our e-commerce businesses have turned in another stellar quarter doubling over the previous year. IndiaCast has hit a positive trajectory and stays with its focus of correcting the group's distribution revenues upwards. The News Network will further consolidate its leadership position with the addition of ETV News to the stable. The broadcast brands across mass entertainment, English and Factual Entertainment, Kids, Music continue to grow and hold leadership positions. Importantly, all our programming initiatives in prime time and the weekend have paid off rather well on Colors and we hope to replicate this success in the regional ETV entertainment bouquet as well by investing in content and audiences.”
As mentioned in the last quarter, effective July 1, 2012, IndiaCast is now managing TV18’s and Viacom18’s distribution operations. All prior entities/teams involved with collecting subscription and/or paying carriage and placement have been subsumed as part of IndiaCast. IndiaCast is a 50:50 joint venture between TV18 and Viacom18. Pursuant to this development, broadcasting operations of TV18, are now reporting net revenues from distribution starting last quarter.