TV 18 Q2 subscription revenue up 43% YoY

Viewership share in news increases to 10.9% and entertainment viewership share rises to 9.2%

e4m by exchange4media Staff
Updated: Oct 15, 2019 7:05 PM

Network18 Media & Investments Limited has announced its result for the quarter and half year ended September 30, 2019. While their Q2 subscription revenue rose 43% YoY, advertising environment remained soft. Cost optimisations boosted Q2 Entertainment EBITDA margins to 11.4% vs 9.9% last year.

Highlights of the quarter included subscription income growing by 43% YoY in Q2, continuing with the 48% YoY growth witnessed in Q1.

“The implementation of the new tariff order (NTO) has created a transparent and non-discriminatory B2C regime. Flux around the NTO has largely settled, though the cable segment continues to face some billing and reporting issues. Our domestic yields have improved, led by the strength of our bouquet as demonstrated by consumer choice for our channels and packs. Improved distribution tie-ups give our channel portfolio unparalleled reach across TV & Digital,” the network said in a statement.

The advertising environment continued to remain tepid during much of the past quarter. Weak macro-economic trends dragged down consumer spends and depressed broader corporate appetite for above-the-line marketing activity, it said.

The report statement also said, “However, certain categories of new-economy advertisers were bright spots, and tailwinds in regional and digital consumption continued to attract attention. Ad spends began to rise, led by the advent of the festive season late in the quarter, and big-ticket programmes and events planned around the same. We are hopeful that government policies aimed at stimulating demand shall aid the recovery as we head into H2.”

TV18’s Q2 viewership share in news increased further to 10.9%, up from 10.1% in Q1. The group’s Q2 entertainment viewership share was 9.2%, vs 9.1% last quarter.

“GECs impacted portfolio revenue growth. Macro-weakness and shift of channels from DD Freedish to Pay ecosystem continues to drag ad-revenues of GECs for the entire industry. Pushing of some high-end content vs last year for better monetization (i.e. planned delay in the launch of Big Boss, shifting of IIFA awards to Q3, etc) makes the base not fully comparable,” the network said.
The result pointed out how improved subscription income and cost controls raised EBITDA 7% YoY. “Sharp pullback in broadcast costs through optimisations raised EBITDA margins to 11.4% vs 9.9% in Q2FY19. This is despite investments to the tune of Rs 13 crore in regional movie channels (Kannada and Gujarati Cinema) and paid-offerings (Voot Kids & International). Excluding these, BAU margins improved to 12.9%. BAU margins include the impact of initiatives launched more than a year ago but are still in gestation, including Voot and Colors Tamil,” the statement stated.

Commenting on the results, Adil Zainulbhai, Chairman of Network18, said, “Network18 successfully encapsulates news and entertainment content, across national and regional platforms, in both TV and digital mediums. We are fully geared for a digital world, with differentiated content available on integrated platforms on a pipe-agnostic basis. Impetus on seeding new business models and germinating fresh ideas are the hallmarks of our digital business, which is backed by a TV content backbone that we continue to invest in.”

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