FY23: TV18's profit declines to Rs 20 crore in Q4; yearly profit down to Rs 128 crore

TV18 Broadcast registered a decline in profit to Rs 20 crore in the Q4FY23, as compared to Rs 221 crore in the corresponding quarter of the previous year.

For the year as a whole, the company’s profit declined to Rs 128 crore in FY23, as compared to Rs 926 crore in the previous year, marking a 86% decline in profit.

The revenue from operations in Q4FY23 receded to Rs 1,406 crore as compared to Rs 1,496 crore in the corresponding quarter in FY22, leading to a 6% decline. However, for FY23 the revenue from operations increased to Rs 5,912 crore from the Rs 5,526 crore it recorded a year back, leading to a 6.9% increase.

The operating revenue from News (TV18 Standalone) reduced to Rs 1,252 crore in FY23, as compared to Rs 1,262 crore in Fy22, leading to a 1% decline. The operating revenue from Entertainment (Viacom18+AETN18+Indiacast), however, increased to Rs 4,660 crore in the recently concluded FY23, as compared to Rs 4,264 crore in FY22, marking a 9% increase.

Meanwhile, Network18 Media and Investments reported a consolidated operating revenue of Rs 1,484 crore in the recently concluded quarter as compared to Rs 1,621 crore recorded in Q4FY22, marking an 8% decline. For FY23, operating revenue increased to Rs 6,223 crore, as compared to Rs 5,880 crore in the previous year, leading to a 6% increase.

Network18 Media, however, reported a net loss of Rs 36.78 crore for the fourth quarter ended March 2023, as compared to a net profit of Rs 61.85 crore in the same quarter last year. 

The net loss for the year ended March 31, 2023 was at Rs 84.27 crore as compared to a profit of Rs 207.54 crore a year ago.

The company has cited lower ad revenue as the primary cause for the decline in profitability. 

"The impact on advertising revenue had a direct bearing on margins as we continued with investments to strengthen our position across segments. The profitability of the business also suffered due to investments in new initiatives - digital entertainment and sports, which had a negative contribution to EBITDA of Rs 170 crore and Rs 475 crore for Q4 and for the full year, respectively," the company said in its earnings statement. 

Adil Zainulbhai, Chairman of Network18, said, "Viacom18’s strategic partnership with some of the biggest names in the media space is a great news for the company. With talent, resources, and technological capabilities at its disposal, it has the potential to change the narrative of India’s M&E landscape. We are committed to bringing the best media and content offering for Indian consumers and will continue to work with an unwavering focus towards that goal."

"While this fiscal was a year of consolidation as we took positive steps towards strengthening our position across segments, we look forward with a lot of excitement as we gear up for the next year," he added.

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