Network18 Q2 digital ops grow 72 pc; TV biz steady
B Saikumar, Group CEO, Network18, says the broadcast business has turned in a steady performance despite a challenging ad environment
The Network18 Group has recorded consolidated revenues of Rs 534 crore for the second quarter ending September 30, 2012, a growth of 37 per cent over same quarter last year.
The Group’s TV18 business (both News and Entertainment) continued to grow steadily. Reported revenues for the television and motion pictures business stood at Rs 365.1 crore for Q2 FY13., while profit for the quarter was Rs 14.2 crore. The broadcasting and motion pictures operations turned in a profit of Rs 28.2 crore during the quarter. Digital content and e-commerce business grew to Rs 98.2 crore for Q2, a 72 per cent growth over the same quarter last year. Network18’s digital content operations recorded revenues of Rs 20.4 crore, growing by 17 per cent year on year.
Raghav Bahl, Managing Director, Network18, remarked, “The Network18 Group is now entering a new phase in its journey with a formidable broadcast offering (post the consummation of our proposed strategic stake acquisition in ETV), our new distribution venture, IndiaCast, and a strong portfolio of digital properties, in addition to a recast balance sheet.”
Commenting on the results for the quarter, B Saikumar, Group CEO, Network18, said, “Our broadcast business across news and entertainment has turned in a steady performance in spite of continued softness in the advertising environment. Notably, our distribution venture, IndiaCast, has had a very encouraging start and this positions us well as digitisation gets underway. The other highlights of the quarter were the continued growth in our digital content and commerce operations and the motion pictures business breaking into positive territory. Going forward, we’re focused on maintaining strong operational performance, in spite of risks on the advertising front.”
Effective July 1, 2012, IndiaCast has been managing the distribution operations for TV18 and Viacom18. Pursuant to this development, broadcasting operations of TV18 now report net revenues from distribution starting this quarter. Net revenues from distribution may be understood as subscription revenues earned by the company minus carriage/ placement fees or any promotions/ commission paid. This will have the impact of reducing the Group’s reported revenues and expenses and hence, will not be comparable to previous year audited numbers, but will leave EBITDA unchanged.
The Group’s business news operations delivered a steady quarter. The Q2 FY13 revenues stood at Rs 51.9 crore, while operating profit stood at Rs 16.9 crore for the quarter. Revenues from general news operations stood at Rs 60.3 crore.
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