TV18, Network18 deliver strong operating performance in Q2FY14

TV18's EBITDA up at Rs 40 crore; PAT at Rs 10 crore against loss of Rs 40 crore in Q2FY13. Viacom18 operating profits grew strongly to Rs 57.5 crore

BestMediaInfo Bureau | Delhi | October 29, 2013

TV18 Broadcast Ltd has announced its results for the quarter ended September 30, 2013. Revenues for the television (including IndiaCast) and motion pictures business stood at Rs 483.2 crore for the quarter. At a consolidated level, advertising revenues grew 4 per cent year-on-year. While the general news and niche genres witnessed continued softness, advertising revenues from entertainment led by Colors grew strongly.

Net Distribution Income continued to grow steadily to Rs 39.1 crore this quarter. Reported operating profit (EBITDA) for the quarter stood at Rs 39.6 crore, up 178 per cent over the previous year. The company turned in a profit after tax (PAT) of Rs 10.1 crore for the quarter.

Operating profit for the current quarter stood at Rs 18.3 crore with an operating margin of 28 per cent. Operating Revenues for the current quarter stood at Rs 65.2 crore.

Business news channels CNBC TV18 and CNBC Awaaz continued to be market leaders during the quarter.

In the backdrop of a lackluster advertising environment, general news operations had an operating loss of Rs 8.2 crore for the quarter.

Q2FY14 revenues of History TV18 were down compared to last year. The genre continued to see weak advertising spends for the current quarter also. However, losses were contained at Rs 1.6 crore.

Q2FY14 revenues for Viacom 18 stood at Rs 546.7 crore, a growth of 34 per cent over the previous quarter. Operating Profits grew strongly to Rs 57.5 crore against Rs 12.6 crore in the previous year.

Television Broadcasting revenues for the current quarter stood at Rs 349.1 crore against Rs 257 crore in the previous year. Operating profits from Television business stood at Rs 49.4 crore and grew by 80 per cent over the previous year. The growth was driven by both strong advertising and distribution revenues.

Colors was the No. 2 channel during the current quarter and the No. 1 channel during primetime for the last four weeks of the quarter. While our fiction line-up continued to perform, our line-up was strengthened by a spectacular season of Jhalak Dhikla Jaa and the overwhelming success of weekend show Comedy Nights with Kapil.

Viacom18 Motion Pictures released five movies during the quarter. The slate had three Hindi titles – Bhaag Milkha Bhaag, Luv U Soniyo and Madras Café – and two Marathi titles – 72 Miles and Kumari Gangubai Non Matric. Bhaag Milkha Bhaag and Madras Café were critically acclaimed and runaway hits. Operating profits from the business stood at Rs 7.5 crore for the quarter.

Raghav Bahl

Raghav Bahl, MD of Network18, said, “Even though the macroeconomic environment continued to be uncertain, the media and entertainment industry is well poised to deliver robust growth. At TV18, we are confident of maintaining our growth trajectory to create value for our stakeholders. During the current quarter our broadcasting operations turned in strong operating profits. We are particularly heartened by the doubling of operating profits in the first half of the current financial year compared to previous year.”

B Sai Kumar

B Saikumar, Group CEO, Network18, said, “During the current quarter, we turned in robust operating profits for both our broadcasting and motion pictures businesses. We embarked on an operational restructuring programme to realise synergies across the news network which will be instrumental in creating sustained value. Our entertainment business turned in an excellent quarter and IndiaCast continued in its growth trajectory. The advertising environment continues to be lackadaisical especially for news and other niche genres but we remain confident of delivering a strong year ahead.”

Network18 turns in strong performance

Network18 Group announced strong performance for the quarter ending September 30, 2013. Consolidated operating revenues for the quarter stood at Rs 669.8 crore on a reported basis. The company turned in EBITDA of Rs 20.1 crore for the quarter against a loss of Rs 39 crore y-o-y.

The PAT for H1FY14 swings upwards by Rs 92 crore compared to H1FY13. There was a sharp reduction in Operating Losses at Homehop18.

The Digital Content and eCommerce business grew to Rs 124.8 crore and operating losses from the segment reduced sharply. Network18 is one of the largest Indian digital media companies in the world in terms of unique visitors as per Comscore. Operating losses reduced substantially to Rs 9.3 crore.

Digital Content operations recorded revenues of Rs 20.4 crore for the quarter. Bookmyshow.com revenues grew over 36 per cent compared to the previous year. HomeShop18 continued to scale across key operating parameters while containing losses. Revenues grew at over 65 per cent over last year with both television and eCommerce businesses continuing to consolidate their leadership positions.

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