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Network18 announces Q4 FY12 results

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Network18 announces Q4 FY12 results

Network18 Group has reported consolidated revenues of Rs 659.5 crore for the fourth quarter ending March 31, 2012, a growth of 63 per cent over the same quarter last year.

The TV18 business (both news and entertainment) exhibited growth momentum despite the challenging advertising environment of the entire industry, with Q4 FY12 revenues at Rs 348.7 crore, a growth of 16 per cent over the corresponding quarter last year on a proforma basis.

Operating profits from the television business stood at Rs 8.2 crore during the quarter from continuing operations, excluding one-time expenses/ revenues and losses towards new launches and discontinued operations. Subscription revenues stood at Rs 189.9 crore for the full year, growing by over 50 per cent over last year.

During the year, Network18 launched five channels – History TV18, Comedy Central, Sonic, Colors HD and CNBC TV18 Prime HD.

The group’s digital content and e-commerce business grew to Rs 67.1 crore in Q4 FY12, a 37 per cent growth over the same quarter last year (on a proforma basis). Newswire18 delivered revenues of Rs 11.6 crore for Q4, while HomeShop18 recorded revenues of Rs 30 crore. The shopping channel’s orders executed during the year grew by over 126 per cent year-on-year.

In a prepared statement, Raghav Bahl, Managing Director, Network18 remarked, “FY12 was a truly transformational year for Network18. Against the backdrop of challenging macroeconomic headwinds, we consolidated, grew and invested in our core businesses.”

He further said, “We announced the proposed strategic stake acquisition in ETV and a plan to induct significant equity in the group. These plans when consummated (subject to regulatory approvals) will catapult us into the forefront of the Indian media industry with a debt free balance sheet and a fully built out television and digital footprint. Given the regulatory push for digitisation and our transformed group structure, FY13 promises to be an exciting year for us at Network18.”

Commenting on the results for the fourth quarter, Sai Kumar, Group CEO, Network18 said, “In the year gone by, we invested in scaling our e-commerce businesses and in expanding our television channels bouquet. Our bouquet straddling news and entertainment across national and regional geographies is a compelling offering and is suitably placed to make the most of the upcoming digitised environment. Our subscription revenues have grown substantially over last year and we see this trend continuing as our revamped distribution organisation is now supported by a positive regulatory environment. Going forward, we expect medium term softness on the advertising front, but are confident of delivering a strong operating performance.”

Meanwhile, Network18’s one-time losses amounting to Rs 47.7 crore in Q4 were incurred due to discontinued operations – deferment of the Hindi movie channel and TIFC. Rs 29.4 crore loss was incurred in Q4 with respect to costs towards the group’s new channels – Sonic, Comedy Central and Colors HD. For the full year FY12, the losses incurred towards these heads were Rs 52.6 crore and Rs 127 crore, respectively. The group also incurred operating losses amounting to Rs 15.4 crore in Q4 and Rs 48.3 crore for the full year FY12 towards the launch costs of History TV18 channel.

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