Network 18’s Digital Content and Commerce operations sustained their growth momentum delivering a 25% growth in revenues to Rs. 149.8 crores in the quarter. The segment also saw a sharp reduction in operating losses,which reduced by 55% year on year.
Announcing the results, Raghav Bahl, Managing Director, Network18 said “We are greatly enthused by the strong performance of Network18 despite the continued uncertainty in the macro-economic landscape. While environmental risks may continue in the medium term, we are confident of maintaining our growth trajectory.
During the quarter, our digital operations grew substantially and broadcast operations posted healthy margins,which led to the sharp improvement in our operating profits, aided further by a healthy balance sheet. We are now in the sustained value creation phase of our journey even as we look to further strengthen our existing broadcast and digital businesses and consolidate our regional acquisition”
Commenting on the results for the quarter, B. Saikumar, Group CEO, Network18 said, “Our broadcast operations grew their margins substantially in a challenging environment. Our News business realised value from operating efficiencies and Infotainment operations broke into positive territory. Our Entertainment operations led by Colors delivered a healthy performance even as Motion Pictures saw losses in this quarter.
IndiaCast continued on its robust growth trajectory. We continued to grow strongly in our digital commerce business and our digital content business sustained its momentum towards profitability. We look forward to building on network synergies with our new broadcast and digital initiatives – Rishtey India, MTV Indies, CNBC Bajar, firstbiz.com and News18.com. We are confident of sustaining our strong performance in the year ahead.”
Reported revenues on a consolidated basis stood at Rs. 525.5 crores for the quarter, up 3% over prior year. The company reported its highest ever quarterly Operating Profit (EBITDA) at Rs. 77.5 crores (up 61% yoy) with both the Entertainment and News businesses turning in strong quarters.
On a consolidated basis, advertising revenues grew 3% year on year. While the News and Infotainment advertising environment continues to be sluggish, Entertainment led by Colors and MTV delivered strong double digit advertising growth. Net Distribution Income (NDI) at Rs.43.6 crores continued its steady growth, growing 145% year on year.
TV18’s Broadcast operations turned in a very strong quarter with an operating profit of Rs. 91.1 crores, up 110% on a year over year basis.
Proforma results are assuming financial consolidation of ETV News (100%) and ETV Entertainment (50%). On 22 Jan 2014, post receipt of required regulatory approvals, TV18 completed the acquisition of the ETV channels – 100% of ETV News, 50% of ETV Entertainment and 24.5% of ETV Telugu.
Proforma reported revenues on a consolidated basis stood at Rs. 595.9 crores for the quarter, up 5% over prior year. Proforma Operating Profit (EBITDA) came in at Rs. 94.5 crores (up 79% yoy) led by a strong performance in ETV News.
On a proforma basis, this was a landmark quarter for TV18 with Broadcast operations turning in an EBITDA of Rs. 108.1 crores. ETV Entertainment reported a sharp reduction in losses compared to the previous two quarters as programming and marketing investments made in the first half led to an upswing in ratings and revenues.