Network18 posts loss of Rs 79 crore while TV18's income rose marginally from Rs 247.7 crore to Rs 250 crore
Both the listed companies of Network18 group reported significant downturn in their financial performance during the third quarter ended on December 31, 2016
The two listed companies of Network18 group had a financial downturn during the third quarter, which ended on December 31, 2016. TV18 Broadcast Limited, a listed subsidiary of Network18, reported a net profit (after taxes, minority interest and share of profit of joint venture and associate) of Rs 19.7 crore. When compared with Q3 results of the previous fiscal, net profit fell by an amount of more than Rs 65 crore as it was earlier at Rs 84.9 crore. Thereby, the net profit generated a staggering slide of 76.79%.
For Network18 Media & Investments Limited, the group holding company, Q3 FY 17 was tougher as they posted a loss of Rs 79.79 crore. During Q3 FY16, they had made a profit of Rs 50.36 crore.
Income and expenses grew at TV18
At TV18, income wasn’t the reason behind the dismal financial performance. In fact, income rose marginally from Rs 247.7 crore to Rs 250 crore. Increased expenditure of Rs 25 crore was indeed the difference maker. Total expenses went up from Rs 207.5 crore to Rs 232.5 crore.
This was caused primarily due to an upward movement in expenses related to employee benefits, depreciation and amortisation while marketing, distribution and promotional costs were reduced.
Employee benefit expenses increased from Rs 65.6 crore to Rs 83.8 crore whereas depreciation and amortisation expenses nearly doubled from Rs 9 crore to Rs 17.2 crore. Income from other operations did not help the cause either as it dipped by Rs 8.4 crore to Rs 4.7 crore.
The company also suffered on account of a spike in finance costs at Rs 5.9 crore which earlier stood at Rs 4.8 crore. Tax expenses also registered a huge increase from Rs 80 lakh to Rs 6.1 crore.
Network18’s expenses rose alongside decline in income
On December 31, 2015, Network18 Media & Investments Limited’s income for the quarter was Rs 401.22 crore. That figure plunged by roughly Rs 30 crore to Rs 372.80 crore during Q3 FY 17. Simultaneously, expenditures incurred by the company earlier at Rs 379.37 crore increased by almost Rs 26 crore to Rs 405.18 crore.
Expenses relating to employees shot up from Rs 97.35 crore to Rs 122.99 crore, an increase of Rs 25 crore. Depreciation and amortisation expenses and finance costs added to the financial burden.
At the end of nine months in December 2015, TV18 had a net profit of Rs 111.2 crore. That number for the same period has been reduced to less than 1/10th during the current fiscal at Rs 10.7 crore.
Presiding over losses worth Rs 196 crore during the nine month period ended December 31, 2016, Network18 was comfortably positioned at a profit of Rs 54.03 crore during the same period last fiscal.
Note: All comparisons are between the figures of Q3 FY 17 and Q3 FY 16 except for the comparison over a period of nine months. Net profit/loss figures mentioned herein are after taxes, minority interest and share of profit of joint venture(s) and associate(s).For more updates, be socially connected with us on
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