Network18 Q4 2017-18 results
Network18, a subsidiary of TV18 Broadcast Ltd, has announced the results of its quarter and financial year, ending 31st March, 2018
Network18 Media & Investments Limited has announced the results of its quarter and financial year, ended 31st March 2018. Network18, a subsidiary of TV18 Broadcast Ltd. took operational control and increased its stake in Viacom18 to 51% by acquiring 1% equity from JV partner Viacom Inc. This is aimed at driving value addition and synergies across the multi-platform group comprising broadcast, digital, filmed and experiential entertainment and media businesses. Pursuant to this acquisition, Viacom18 and the distribution arm Indiacast have been consolidated into TV18 (and hence, Network18) financials from 1st March 2018.
Summary Consolidated Financials:
Viacom18 & Indiacast became subsidiaries of TV18 from 28th February 2018 and have now been consolidated into TV18/Network18 financials. HomeShop18 has ceased to be a subsidiary of Network18 from 15th February 2018 as a result of its acquisition of ShopCJ through a share-swap.
Network18 posted consolidated revenues of Rs. 5,027 crores in FY18, a 16% YoY growth (on a comparable basis). Q4FY18 revenue grew 40% YoY driven by film revenue and a broad based recovery in advertising, off a low-base last year.
Highlights for the quarter:
- Revenue growth was driven by a broad-based recovery in advertisement spending, as well as a favourable base: With the economy on a revival trend and temporary impact of GST implementation behind us, our broadcast portfolio benefitted from the improved advertising environment.
- TV18 posted 41% revenue growth on a comparable basis: Business News maintained its healthy growth while General News benefitted from strong performance of Hindi News channel News18 India, as both rankings and revenue rose, in a fast-growing genre. Regional News continued to increase its viewership but witness tepid revenues due to lack of government spends. Our entertainment portfolio demonstrated robust growth even as high-impact advertising recovers with a lag. General entertainment (both Hindi and English) and Kids were strong performers. Box-office success of marquee movie “Padmaavat” was a positive as well.
- Network18 digital content properties reach 25% of total news consumption audience: MoneyControl app has 3x the users of its nearest competitor. Network18’s digital revenues from prime properties MoneyControl, News18 & Firstpost have grown 34% YoY to Rs 45 Cr in Q4.
- TV18’s News bouquet (23 channels) is #1 in reach; News viewership share rose to 9.5%. Around events like Union budget, flagship CNBC TV18’s viewership even tops English General News channels which cater to a much larger market. Hindi News channel News18 India is a Network18 Q4 FY18 is a strong top-5 channel now, and has often wrested the top viewership in primetime from the market-leader. Regional News portfolio contributes nearly as much viewership as our national channels, making them well-positioned to benefit from potential revival in rural economy and upcoming elections.
- Viacom18 bouquet’s (30 channels) share of entertainment viewership rose to 11.3%: Colors solidified its position as the #1 urban GEC. With leading channels in niches like English, Youth and Music growing at a fast clip, and an impetus on regional and digital, a full-portfolioplay is in effect. Rishtey Cineplex is the #3 movie channel now and also did a live telecast of the Nidahas trophy cricket tournament in partnership with Discovery Sports/Jio. The film business clocked revenues of Rs 329 Cr in Q4FY18 (vs Rs 72 Cr in Q4FY17) and Rs 450 Cr in FY18 (vs Rs 150 Cr in FY17).
- Colors Tamil launched in mid-February: Colors Tamil fills a vital whitespace in our regional entertainment portfolio, in a highly competitive market. Its fresh subjects and cinematic-quality content are being well-received. The channel launched with 22 hours of original programming per month, and will ramp-up in content and improve distribution over the year. It has garnered 5% viewership share, and made strong inroads in urban markets like Chennai. Investments into funding operating losses of this new initiative were Rs 45 Cr for the quarter.
- Umbrella brand “News18” for all general News channels: With the rebranding of remaining 5ETV and IBN Lokmat regional channels, the process of having a unified brand “News18” for all 17 of our general news channels (in 15 languages covering 26 states) is complete.
- CNBC TV18’s digital destination CNBCTV18.com/CNBCTV18 app launched on 6th Apr-18. This premium digital platform is the landing page for the flagship news channel. It offers news and information on business & economy as well as stock markets. It provides fresh perspectives on entrepreneurship and leadership, and also offers video-feed/clips of the TV channel.
Financials for the Quarter:
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