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ZEEL, Network18, TV18 collective ad spends rise 10.8% to Rs.456 crore in Q2

16-October-2015
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ZEEL, Network18, TV18 collective ad spends rise 10.8% to Rs.456 crore in Q2

The results of three of the top TV networks i.e. Zee Entertainment Enterprises Ltd. (ZEEL), Network18 and TV18 emerged recently. While ZEEL saw very good results as its profit after tax (PAT) margin rose by 17.8%, its advertising revenues grew by 35% to Rs. 843.3 crore during the quarter. TV18’s quarterly operating revenues on a consolidated basis stood at Rs. 608.5 crore in Q2 FY16, up 10% YoY from Rs. 553.7 crore in Q2 FY15. Network18, on the other hand, posted a net loss of Rs. 27.42 crore which is a decline in the net loss since the same quarter last year which was at Rs. 36.46 crore. The total income from operations grew by 7.5% to Rs. 801.13 crore in Q2FY2016 from Rs. 744.83 crore in Q2FY2015.

During the last quarter, Q1FY2016, all the three broadcast networks had posted a double-digit growth in revenues. ZEEL’s total income from operations grew by 26.6 per cent in comparison with the corresponding quarter during the previous year. The income from operations grew in Q1FY2016 to Rs. 1,339 crore from Rs. 1,055 crore in Q1FY2015. Network18’s total income from operations grew by 12% since the corresponding quarter last year. The income from operations for Network18 in Q1FY2016 was Rs. 786.1 crore and in Q1FY2015 it was Rs. 699.7 crore. TV18 operating revenues grew by 13 per cent in comparison with Q1FY2015. In Q1FY2016 the operating revenues was Rs. 596.7 crore in comparison with Rs.629.7 crore in Q1FY2015.

Ad spends matrix

The ad and promotion spends of ZEEL, Network18 and TV18 in Q2FY2016 grew by an average of 10.8% from the same quarter last year. The ad spends together accounted for Rs. 456.18 crore in Q2FY2016 from Rs. 411.49 crore in Q2FY2015. ZEEL saw the maximum growth in ad spends from the same period last year. The network’s ad spends had grown by a high 64.6% to Rs. 120.90 crore in Q2FY2016 from Rs. 73.45 crore in Q2FY2015. TV18 however saw a smaller growth as its ad spends increased to Rs. 127.03 crore in Q2FY2016 from Rs. 117.32 crore in Q2FY2015. Network18 on the other hand had seen a slight decline in its ad spends during this quarter in comparison to the corresponding quarter last year. Its ad spends in Q2FY2016 was Rs. 208.25 crore which had declined from Rs. 220.72 crore in Q2FY2015.

Lower growth of 2.8% in ad spends from last quarter

The ad spends of these three major networks however grew by a low 2.8% since the previous quarter Q1FY2016. The ad and promotion spends of ZEEL, Network18 and TV18 in Q1FY2016 amounted to Rs. 443.7 crore. This has grown to Rs. 456.18 crore during Q2FY2016. The reason for this is that, while ZEEL has had a major rise in the ad spends during this Q2 from Q1, Network18 and TV18 has seen a slide in ad spends during the quarter. ZEEL’s ad spends increased to Rs. 120.90 crore in Q2FY2016 from Rs. 96.6 crore in Q1FY2016. Network18’s ad spends declined marginally to Rs. 208.25 crore in Q2FY2016 from Rs. 211.2 crore in Q1FY2016. TV18’s ad spends too declined to Rs. 127.03 crore in Q2FY2016 from Rs. 135.9 crore in Q1FY2016.

Q1 comparison

ZEEL’s advertising and publicity expenses rose by a high double-digit in Q1FY2016 to 20% in comparison with Q1FY2015. Advertising and publicity expenses grew to Rs. 96.6 crore in Q1FY2016 from Rs. 80.3 crore in Q1 last year.

TV18’s marketing, distribution and promotion expenses increased significantly by 32.9% since Q1FY2015. The ad and marketing spends accounted to Rs. 135.9 crore in Q1FY2016 from Rs. 102.2 crore in Q1FY2015.

Network18’s ad and marketing spends grew by high single-digit of 9.8%. It increased to Rs. 211.2 crore in Q1FY2016 from Rs. 192.2 crore in Q1FY2015.

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