Network18 Media & Investments Limited announced its results for the quarter ending March 31, 2014.
Highlights of reported results
Reported revenues on a consolidated basis for FY14 stood at Rs 2,692.4 crore, up by 12 per cent YOY.
Operating profits (EBITDA) turned around from a loss of Rs 39.3 crore in FY13 to a profit of Rs 87.2 crore in FY14, led by a consistent increase in profits generated by the television operations and reduction in operating losses of the digital businesses.
PBT for the year turned around from a loss of Rs 136.9 crore last year to Rs 16 crore this year led by a strong operating performance and a sharp reduction in interest cost from Rs 272 crore last year to Rs 122.5 crore this year.
Reported operating revenue in Q4 FY14 was Rs 738.3 crore, up 8.7 per cent YOY. Reported operating profit (EBITDA) in Q4FY14 was Rs 42.3 crore, up from Rs 12.7 crore last year.
Television and Motion Pictures
Reported annual revenues on a consolidated basis are up 15.8 per cent to Rs 1,968.1 crore and operating profits (EBITDA) have nearly doubled to Rs 210.5 crore.
On a consolidated basis, annual advertising revenues grew 11 per cent year on year. Net Distribution Income (NDI) continued its steady climb to close at Rs 178 crore, up from Rs 15.7 crore in FY13.
In this financial year, operating profits from television operations doubled from Rs 114.2 crore to Rs 233.6 crore. General News delivered a 6.9x growth in annual operating profits and grew to Rs 22 crores. Business News remained stable despite a downturn in the markets and the absence of the Union Budget. Entertainment television business registered a 2.9x growth in operating profits (EBITDA) which stood at Rs 108.4 crore.
In Q4, the company successfully launched MTV Indies and Rishtey in the entertainment segment and ETV Bangla, ETV Kannada and ETV Haryana in the regional news segment.
Reported revenues for Q4 FY14 stood at Rs 563.3 crore, up 18.7 per cent and operating profits (EBITDA) in Q4 FY14 stood at Rs 69.7 crore, up 101 per cent YOY.
Digital content and e-commerce
FY14 revenues from the digital content and e-commerce business grew by 32 per cent from Rs 400.9 crore last year to Rs 530.8 crore this year. Operating losses (EBITDA) of digital business were steadily reduced in this financial year from Rs 125.4 crore to Rs 80.6 crore.
In Q4 FY14, the company successfully launched ‘FirstBiz’, a business news portal under the ‘FirstPost’ stable and ‘News18.com’, a web, mobile and tablet service which focuses on local news at the state and city level.
Q4 FY14 revenues from the digital businesses stood at Rs 149.4 crore and grew by 35 per cent over the last year.
Announcing the results, Raghav Bahl, Managing Director, Network18 said, “We are enthused by the turnaround performance of Network18 for this financial year. All our businesses have delivered strong operating performances and contributed positively to achieve a new milestone in operating profits this year, despite the continued uncertainty in the macro-economic environment. We are confident of sustaining our growth trajectory, as we continue to extract value from our existing operations as well as profitably grow our newer initiatives.”
Commenting on the results for the quarter, B. Saikumar, Group CEO, Network18 said, “All our broadcast operations continued to show improvement in margins. IndiaCast has delivered a stellar swing in net distribution income. Our General news operations have turned around this year, due to a strong focus on operational efficiency. Infotainment operations at A+E Networks I TV18 broke into positive territory. Our broadcast entertainment business at Viacom18 grew profitably. Our digital businesses displayed encouraging revenue growth, successfully launched FirstBiz and News18.com and narrowed operating losses. We are focused on sustaining our strong performance in the coming year.”
Reported results are inclusive of the financial consolidation of ETV News (100%) and ETV Entertainment (50%) from 22nd Jan 2014 till 31st March 2014. On 22nd 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. In accordance with the accounting policies, ETV News and ETV Entertainment have been consolidated at 100% on a line by line basis.