Return of the good times for TV18 & Network18

30 Jul,2013

By A Correspondent

 

It’s Q1 results announcement time. And although MxMIndia doesn’t do individual look-ins into the financial numbers presented quarter se quarter tak, this one deserves a special mention.

 

For the q ending June 30, TV18 Broadcast Limited reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs 396.2 crore. Ad revenues grew 6% year-on-year. Indicating the fruits of digitization and a well-orchestration distribution exercise, net distribution income grew 32% sequentially to Rs 34.9 crore this quarter, swinging from a loss of Rs 16 crore previously.

 

And the real reason why the offices of TV18 were flooded with bubbly yesterday: the reported operating profit for the quarter stood at Rs 23.8 crore, up 57% over previous year. The company turned in a profit of Rs 5.9 crore after tax for the quarter as compared to a loss of Rs 23.5 crore in the previous year. Announcing the results, Raghav Bahl, Managing Director, Network18 said, “The macroeconomic environment continues to be challenging and growth prospects remain uncertain. Given this backdrop, our broadcasting operations turned in a steady performance aided by the roll out of digitization in 42 cities.”

 

Commenting on the results for the quarter, B. Saikumar, Group CEO, said, “We continue to turn in steady operating profits from our television businesses. Motion pictures have seen losses this quarter and the management is confident of stemming them in the immediate term. While our news and infotainment businesses have seen distinct softness in advertising, our entertainment businesses led by Colors have performed well on this front. Net Distribution Revenues from IndiaCast are on a strong growth trajectory and we continue to be enthused by its growth potential. The industry is going through several important changes on both the advertising and distribution fronts. We believe that these changes are positive and will lead to a stronger industry structure. We remain confident of delivering a strong year ahead

 

Meanwhile, Network18’s PAT for Q1FY14 stood at Rs 19 crores as compared to Q1FY13 loss of Rs 90 crore.  The digital content and eCommerce business grew to Rs 106.9 crores, registering a growth of 174%, over the corresponding quarter during the previous year (adjusted for the sale of Newswire18).

 

Network18 inked an agreement with OCP Asia Ltd. to raise growth capital of USD 30 Million in HomeShop18. During the quarter, it sold its entire stake in a Capital18 portfolio company – Webchutney.

 

Added Mr Bahl: “There were pockets of weaknesses in our portfolio and we are committed to improving segments that are not meeting expectations. We have a strong portfolio of media businesses and remain confident of unlocking their value for our stakeholdeRs ”

 

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