Network18 and TV18 revenues grow by 7% and 10% in Q3FY 18

Network18 posted consolidated revenues of Rs 969 crore (including proportionate share of JVs) in Q3FY18, a 7 per cent YoY growth, as revival in growth in the broadcasting business was partially offset by a pullback in the TV shopping business. Profitability improved substantially, led by cost control in TV shopping accentuating improved margins in broadcasting.

Consolidated Revenue (including proportionate share of Joint Ventures considered for segment reports) for the quarter ended December 31, 2017 stood at Rs 969 crore vs. Rs905 crore in the corresponding quarter last year.

Segment Operating EBITDA on a consolidated basis, including the performance of Joint ventures for the quarter ended December 31, 2017, stood at Rs (13) crore vs Rs (58) crore in the corresponding quarter last year.

Consolidated Revenue as per Ind AS (accounting the JVs under Equity method) for the quarter ended December 31, 2017 stood at Rs 366 crore as compared to Rs 373 crore in the corresponding quarter last year.

Operating EBITDA on a consolidated basis under Ind AS for the quarter ended December 31, 2017 stood at Rs 8 crore, vs Rs (14) crore in the corresponding quarter last year.

TV18 posted consolidated revenues of Rs 770 crore (including proportionate share of JVs) in Q3FY18, a 10% YoY growth. As the general advertising environment improves steadily, overall revenue growth has been healthy, especially for flagship properties.

Network18’s digital revenues (mainly MoneyControl, News18.com and Firstpost) have grown 14% YoY to Rs 36 Cr.

Highlights for the quarter

Advertising growth returned, led by recovery in ad-environment and a favourable base from mid-November: The advertising environment has improved since Q2, but certain segments are still to see full recovery. Tailwinds of strong financial markets, upcoming union budget, state elections and continued revival in consumer spending are positives.

TV18 posted 10% revenue growth (including JVs): Business News continued its steady growth despite its niche nature, and Hindi News performance pushed National News revenue growth to 14%. Regional News offset some of the gains, led by slower ad-recovery and lower government spends this year. The company’s entertainment bouquet’s broadcasting revenues grew in line with industry; as appetite for high-impact advertising is reviving, but with a lag.

TV18 standalone (National news) revenues grew 14%; led by a recovery in advertising environment. While flagship Business News channels continued their dominance, Hindi News performance provided a boost. Profitability also improved substantially as a consequence.

TV18 subsidiaries

Though Infotainment posted mild growth, weakness in Regional News resulted in subsidiary revenues declining 4%. Regional News revenues were weaker due to lower election/government spends versus the previous year, and lagged recovery versus national markets. Profitability was tepid due to gestation losses of channels launched in FY17.

TV18 JVs (largely Viacom18) showed 11% revenue growth, despite lower movie-revenues and selective approach in high-impact advertising spends. Profitability also improved YoY, but was tempered by Colors Tamil pre-launch expense and content/marketing expenses on VOOT.

Adil Zainul bhai

Adil Zainul bhai, Chairman of Network18, said, “We have made a lot of progress in strengthening our digital properties, and growing our position in TV in news and entertainment. We will continue to invest across broadcasting and digital.”

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