Network18 revenues grow by 5% in FY17

Network18 Media and Investments Limited has announced its results for the quarter and year ended March 31, 2017. The company posted consolidated revenues of Rs 3,471 crore (including proportionate share of JVs) in FY17, a 5 per cent year-on-year (y-o-y) growth, driven largely by its TV operations.

Segment profits were significantly impacted by pullback in advertising spends in the latter half, operating losses of the new initiatives in regional and digital broadcasting, and losses in digital commerce businesses.

At the same time, its subsidiary TV18 posted consolidated revenues of Rs 2,677 crore (including proportionate share of JVs) in FY17, a 7 per cent y-o-y growth, driven by entertainment and national news. Segment profits were impacted by investments in new initiatives in regional and digital, and a pullback in advertising spends in the latter half of the year. However, adjusted for the investments in new initiatives and one-time expenses, segment profits at Rs 308 crore were up 30 per cent y-o-y.

Highlights for Q4 for Network18 and TV18

Despite headwinds, Network18’s consolidated top line (including JVs) was flat y-o-y. Listed subsidiary TV18 posted 7 per cent y-o-y top line growth and its operating profits excluding impact of new initiatives was Rs 92.6 crore (versus Rs 96.7 crore in Q4 FY17).

The consolidated revenue (including proportionate share of joint ventures considered for segment reports) for the quarter ended March 31, 2017 stood at Rs 898.4 crore versus Rs 898.8 crore in the corresponding quarter last year. The FY17 consolidated revenue stood at Rs 3,471.1 crore, up 5 per cent from Rs 3,321 crore last year.

Segment loss before interest and tax on a consolidated basis, including the performance of joint ventures for the quarter ended March 31, 2017, stood at Rs 65.5 crore versus segment profit of Rs 65.3 crore in the corresponding quarter last year. Excluding the impact of new initiatives and one-time expenses, the segment profit for the quarter is Rs 5 crore.

For TV18, the consolidated revenue (including proportionate share of joint ventures considered for segment reports) for the quarter ended March 31, 2017 stood at Rs 715.4 crore versus Rs 669.3 crore in the corresponding quarter last year. The FY17 consolidated revenue stood at Rs 2676.9 crore, up 7 per cent from Rs 2494.8 crore last year.

For TV18, segment profit before interest and tax on a consolidated basis including the performance of joint ventures for the quarter ended March 31, 2017 stood at Rs 22.1 crore versus Rs 96.7 crore in the corresponding quarter last year. Excluding the impact of new initiatives and one-time expense, the segment profit for the quarter is Rs. 92.6 crore.

Adil Zainulbhai

Adil Zainulbhai, Chairman, Network18, said, “The digital space in India continues to become more and more vibrant, as bottlenecks around connectivity and cost reduce substantially. We see the emergence of new formats and services, and rapidly-evolving business models; and aim to be at the forefront of this change. Our strength in linear media provides us the edge, helping us leapfrog in our aspiration to be a channel-agnostic provider of top-drawer content.”

Commenting on the results of TV18, Zainulbhai said, “The last year has been a period of flux for the media industry, and a tale of two-halves. Despite headwinds in the later part of the year, we have continued to grow. Our commitment to growth is visible in our continued investments into regional and digital – the two growth axes we believe shall shape the future of media in India.”

Click here to view Network18 Annual Results

Click here to view TV18 Annual results

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