Network18 consolidated revenue up 10% to Rs 1,340 crore in Q1 FY23
Consolidated revenue from company's subsidiary TV18 too increased 10% to Rs 1,265 crore from Rs 1,155 crore a year ago
Media conglomerate Network18’s consolidated revenue for the quarter ended 30th June has grown 10% YoY to Rs 1,340 crore from Rs 1,214 crore. Operating EBITDA for the quarter was down 75% to Rs 46 crore from Rs 188 crore.
Consolidated revenue from the company's subsidiary TV18 increased 10% to Rs 1,265 crore from Rs 1,155 crore a year ago. TV18's consolidated EBITDA was down 69% to Rs 58 crore from Rs 188 crore.
News (TV18 Standalone) revenue was down 1% to Rs 266 crore from Rs 269 crore. The company reported an operating loss of Rs 4 crore from the news segment compared to an operating profit of Rs 40 crore.
Entertainment (Viacom18+AETN18+Indiacast) revenue jumped 13% to Rs 999 crore from Rs 886 crore. EBITDA from this segment shrank by 58% to Rs 62 crore from Rs 147 crore. Viacom18 and AETN18 are 51% entertainment subsidiaries of TV18, while distribution-arm IndiaCast is a 50:50 JV of TV18 and Viacom18.
Digital, Print, Others & Intercompany eliminations grew 26% to Rs 75 crore from Rs 59 crore. The company reported an EBITDA loss of Rs 12 crore compared to a profit of Rs 1 crore in the year-ago period.
The company noted that the Q1 revenue was down 1% YoY, primarily due to a decline in subscription revenue. Advertising revenue was flattish on a YoY basis, despite Q1FY22 having revenue linked to multiple state elections. Scale-up of branded content-led monetisation offset the loss of election-related revenue. The network also optimized inventory on key channels as the news advertising ecosystem adjusted back to ratings which had resumed after a period of 18 months in March.
It further stated that operating costs for the quarter increased by 18%, with more than half of the increase driven by personnel costs. Over the last 5 years, the company's costs have grown at a 2% CAGR, leading to strong growth in profitability. However, to strengthen our competitive position across markets, we are investing, especially in getting new talent on board, which impacted the margins of the business during the quarter.
In the entertainment portfolio, the growth in advertising and movie business revenue, both of which were impacted by the pandemic last year, led to a 13% increase in revenue despite the decline in subscription and Colors Rishtey revenues. Operating costs increased by 27%, driven by higher content and marketing spends, leading to a decline in EBITDA and margins.
On a YoY basis, the profitability of the business was impacted by i) an increase in investments in Sports and Digital businesses ii) a drop in Colors Rishtey ad revenue directly impacting margins. Adjusting for their impact, both EBITDA and margins would have been at similar levels as Q1FY22.
