Q1FY19: Network18 reports consolidated operating EBITDA of Rs 18 crore

Consolidated operating revenues stood at Rs 1,124 crore, with a growth of 10% YoY

e4m by exchange4media Staff
Updated: Jul 25, 2018 8:51 AM

Network18 has reported a consolidated operating EBITDA of Rs 18 crore in Q1FY19, led by improved profitability of broadcast business despite gestation losses of Colors Tamil.

Business-as-usual EBITDA margin for entertainment business improved significantly, and losses in regional news also reduced. Consolidated operating revenues stood at Rs 1,124 crore, with a growth of 10% YoY (on a comparable basis). The net loss has increased by 38.9 per cent to Rs 113 crore against last year Q1 loss, which was Rs 69 crore.

Highlights of the Quarter:

Network18 digital content properties reach 31 per cent of total news consumption audience: The overall Network18 digital, print & others revenue declined due to lower programming executed by 100%-owned content producer Colosceum. Network18’s digital revenues from prime properties MoneyControl, News18 & Firstpost grew 22% YoY to Rs 33 crore in Q1. Overall, Network18 Digital has risen to #2 in terms of user engagement in the digital news category.

BookMyShow to raise US$100mn in Series D funding: Entertainment-ticketing platform BookMyShow (Bigtree Entertainment Pvt. Ltd) has executed definitive documents to raise US$100 million in its Series D funding led by TPG Growth, the middle market and growth equity investment platform of TPG. Network18 also participated in the round, and remains the largest shareholder in BookMyShow.

Adil Zainulbhai, Chairman of Network18, said, “We have begun the new fiscal with improved viewership across our portfolio, which shall be the foundation for our growth plans. We continued investments in regional news and entertainment and in digital. We continue to see opportunities in the media space.”

Business Performance

Network18 Digital

Digital Content: Network18 Digital emerged as a #2 player in the digital news/information category with 79 mn unique visitors (UVs) across devices spending a total of 2 bn minutes. The cohort of sites has become a clear # 2 player on mobile with 68 mn UVs.

Moneycontrol has consolidated its position as India’s leading business and finance destination in the digital landscape with a traffic of 18 mn monthly active users (MAU) and 0.5 billion page views on web and M-site in May’18. The Moneycontrol app has a record 3 mn MAUs. The app continues to be ranked #1 in India with over 3x users compared to its closest competitor.

News 18.com (erstwhile Ibnlive.com and Pradesh18.com): Within 2 years of operations, News18.com as a whole has managed to garner 100 mn users across devices.

News18.com continues to maintain the growth momentum, with UVs doubling YoY. The performance is also reflected in competitor rankings with News18 maintaining its #3 position in monthly users in Q1’FY19. With the launch of News18.com in Telugu and Malayalam, it now has presence across 9 languages

Firstpost: Firstpost, with its digital-first orientation, continues to show growth in traffic. The Q1’FY19 average UVs have grown by 64% over Q4’FY18 average UVs. Performance is also reflected in competitor rankings, with Firstpost now becoming 4th most read digital news site across mobile and desktop.

Firstpost achieved all-time high UVs of 36 mn on account of extensive coverage of Karnataka elections.

CNBCTV18.com: Network18 launched CNBC TV18.com; the digital counterpart of its flagship business news brand CNBC-TV18 on 6th April, 2018. CNBC TV18.com is a premium digital platform offering a mix of original and smartly curated coverage of news, analysis and trends about the stock market, business and economy
(All traffic information as per latest available Comscore data)

Digital Commerce

BookMyShow: During the quarter, 5.4 million bookmyshow apps have been installed. BMS managed ticketing & operations for prestigious IPL tournament Season 11 with 4 IPL teams namely Rajasthan Royals, Chennai Super Kings, Mumbai Indians & Kolkata Knight Riders along with all venue accreditation management for all matches including play-offs.

BMS successfully managed Season 1 of theatrical production Disney Aladdin at Mumbai in April –May 2018 with an average occupancy of 90%

HomeShop18 has combined with another leading TV shopping platform ShopCJ to improve their standing in the competitive digital commerce space. Multiple synergies (sourcing, marketing, distribution) can be exploited as a result of this combination, which has created the de facto largest TV shopping platform in India.

HomeShop18 has ceased to be a subsidiary of Network18 from 15th February 2018. As a result, Network18 continues as the largest shareholder in the combined entity. HomeShop18 continues to face headwinds, as competitive pressure has been exacerbated by vendor supply issues in the recent past. Nevertheless, the process of right-sizing of costs, integration of platforms and focussing on contribution positive categories continues.

Network 18 Print: Under its publishing division, Network18 operates three leading brands --Overdrive, Better Photography and Better Interiors, along with prestigious magazine Forbes India.

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