Network18 reports Rs 1435 cr loss post Viacom-Star merger; Revenue grows over 4% in FY25

Network18 Media & Investments reported a total loss of ₹1,435.79 crore for the last two quarters of FY25 due to changes following the merger of its key assets Viacom18 and IndiaCast with Star India. This has been shown as an exceptional item in the financial results.

Total revenue of Network18 for Q4 FY24, which does not include Viacom18/TV18, stood at Rs 564.5 crore, down from Rs 2,580 crore in the same quarter previous fiscal when Viacom18 and TV18 were a subsidiary of the company.

As part of the merger arrangement, Viacom18’s media operations and JioCinema (the then OTT platform of Viacom18) were first transferred to Digital18. Subsequently, these were demerged from Digital18 and merged into Star India. In parallel, Network18 also sold its stake in IndiaCast to Viacom18. Following this, both Viacom18 and IndiaCast ceased to be subsidiaries of Network18.

Separately, on 30th December 2024, Reliance Industries Ltd—Network18's parent company—converted over 24.6 crore compulsorily convertible preference shares into equity in Viacom18.

This resulted in Viacom18 being reclassified as an associate company rather than a subsidiary. Due to this reclassification and the sale of IndiaCast, Network18 had to derecognize the net assets, including goodwill and non-controlling interests. This led to a consolidated net loss of Rs 1,777 crore for FY25, the company mentions in its financial statement. 

“Revenue for the quarter declined marginally YoY on a high base on account of election led advertising last year. Overall advertising environment remained subdued as advertising inventory consumption for the TV News industry declined by 15% YoY, putting pressure on TV revenue growth,” the company said.

Network18 operating revenue from news business declined by 2.5% YoY from Rs 535 crore in Q4 FY24 to Rs 522 crore in Q4 FY25. For the whole financial year, it grew by 4.3 % from Rs 1818 crore in FY 24 to Rs 1896 crore in FY25.

“For the full year FY25, revenue grew by 4.3% to 1,896 crore, despite a 15% decline in advertising inventory consumption for the TV News industry. This was led by growth in ad pricing which the network has been able to drive on the back of strong viewership shares across multiple markets.

“Given the recent improvement in ranking/share in Marathi, Bengali, and Kannada markets, there is potential for further growth. EBITDA for the year improved marginally as operating costs grew only 3.5%,” it said.

Total revenue of Network18 Media and Investments for Q4 FY24, which does not include Viacom18/TV18, stood at Rs 564.5 crore, down from Rs 2,580 crore in the same quarter previous fiscal when Viacom18 and TV18 were a subsidiary of the company. However, for the full financial year, the revenue fell from Rs 9,994 crore in FY24 to Rs 7,358 crore in FY25.

Its total expenses for the fourth quarter this fiscal stood at Rs 630 crore, down from Rs 2,792 crore in Q4 FY24.

Marketing, distribution and promotional expenses of the company stood at Rs 159.4 crore in Q4 FY25, down from Rs 453.6 crore in Q4 FY24. For the whole year, the marketing expenses stood at Rs 1,511 crore in FY25, down from Rs 1,741 crore in FY24.

For the annual year, depreciation and amortisation expenses increased from Rs 210 crore in FY 24 to Rs 223 crore in FY25.