News business helps TV18 report its highest-ever full-year operating profit at Rs 1,039 crore

TV18 has reported its highest-ever full-year EBITDA at Rs 1,039 crore in FY22. However, Q4’22 EBITDA slipped 9% to Rs 254 crore.

The sharp improvement in annual profitability was backed by the news business of the broadcast arm of Mukesh Ambani-led media investment company Network18. The company said that its entertainment business maintained strong margins despite a step-up in investments.

TV18’s total revenue was up 23% in FY22 to Rs 5,526 crore, driven by strong growth in advertising. On the other hand, the subscription revenue was flat as NTO 2.0 implementation remained mired in legal challenges.

The company’s net profit rose 24% to Rs 926 crore despite impact of Rs 132 crore higher tax provision.

In its regulatory filing, TV18 said that the ad revenues had a pulsating journey, with strong growth during the year bookended by events which impacted the growth.

“The year began with the second pandemic wave sweeping across the country, slowing down the growth momentum which had begun in the second half of the last fiscal. This was followed by a strong growth period, with TV advertising volumes reaching record levels and Digital advertising continuing to gain traction. However, at the end of the year, increasing inflation, further worsened by Russia-Ukraine conflict, impacted consumer demand and consequently advertising spends,” the company said.

Talking about its segments, TV18 said that the news business delivered strong growth in ad revenue in each quarter, while Entertainment business registered a strong growth in the first 3 quarters and moderate growth in the fourth.

Ad revenue of the Company grew not only on a YoY basis, but delivered impressive growth compared to FY20 also.

Adil Zainulbhai, Chairman of TV18, said, “We have set ourselves an ambitious target to become a leading player in the digital space while strengthening our core TV offering. We will continue to solidify our ‘Digital First, TV Always’ proposition, leveraging our existing strengths to grow in segments where we are present and breaking ground in new markets with new and innovative offerings. The strategic partnership we have struck for Viacom18 is a big step in this direction which will help set the Company on a long-term growth trajectory and create one of India’s leading content company.”

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