Network18 posts consolidated operating revenue of Rs 1,774 cr in Q3

The consolidated operating revenue of Network18 Media, which includes TV18, digital news and print, saw a decline of 4.1 % in the third quarter of FY24, from Rs 1,850 crore in the same quarter last fiscal to Rs 1,774 crore in Q3 FY24.

The operating revenue of TV18, which includes TV news and entertainment (Viacom18, AETN18 and Indiacast), saw a decline of 5.2% and stood at Rs 1,676 crore, down from Rs 1,768 crore in Q3 FY23. 

Meanwhile, TV18’s News Business has recorded 23% revenue jump in Q3FY24. The network has registered a revenue of Rs 402 crore in Q3FY24, as compared to Rs 327 crore for the same quarter last fiscal.

The digital news platforms of the group, housed under Network18, also saw 20% growth. Digital news business posted a revenue of Rs 111 crore in Q3 FY24, as compared to Rs 92 crore in Q3 FY23. The digital news business of the group includes popular brands such as Moneycontrol, News18.com and Firstpost. 

According to the company, the operating revenue of TV18 from entertainment alone declined 12% primarily due to lower movie and sports segment revenues. TV18’s revenue from subscription saw a jump of 8% Y-o-Y in Q3 FY24 while film production and distribution revenue saw a sharp decline of 51%, from Rs 209 crore in Q3 FY23 to Rs 103 crore in Q3 FY24.

“Sports revenue was lower as the base quarter had the FIFA World Cup 2022. Digital ad revenue saw strong growth driven by impact properties like Bigg Boss and Temptation Island. TV Entertainment advertising revenue was flat despite having a lower number of hours of non-fiction content compared to last year,” the company said in its earnings release.

TV18 Broadcast suffered a loss of Rs 56 crore during the third quarter of FY24, while the parent company Network18 in totality reported a loss of Rs 108 crore. However, its total income, which also includes other income, in the December quarter was marginally up at Rs 1,841 crore from Rs 1,823 crore in Q3 FY23.

The income from the value of sales and services for Network18 declined from Rs 2,166 crore in Q3 FY23 to Rs 2,064 crore in Q3 FY24. However, its marketing, distribution and promotional expenses went up from Rs 357 crore to Rs 390 crore in Q3. Its depreciation and amortization expense went up from Rs 34 crore to Rs 43 crore this quarter.

In the earnings release, the company mentioned that a scheme of arrangement was announced during the quarter for the merger of TV18 and e-Eighteen.com (Moneycontrol) with Network18 to simplify the holding structure and create a platform-agnostic news media conglomerate.

Adil Zainulbhai, Chairman of Network18, said, “We are really pleased to have announced the merger of our TV and Digital news businesses, which will not only help us serve our consumers better and realize synergies across different segments, but it will also give a unique opportunity to all our shareholders to participate in the media business of the group through a single listed entity.”

“All our businesses are gathering momentum at the right time as the economic outlook continues to improve against the backdrop of a resilient performance by the Indian economy. As we have stated in the past, we believe that the Indian media sector has a long runway for growth and our strong positions across segments give us a perfect launchpad to capture this opportunity,” he said.

The merged entity will comprise the TV portfolio of TV18 (20 news channels in 16 languages and cnbctv18.com), Digital assets of Network18 (News18.com platform across 13 languages and Firstpost) and Moneycontrol platform (website and app). Viacom18 with its portfolio of JioCinema and 40 TV channels will be a direct subsidiary of Network18. Network18 will continue to be the largest shareholder in BookMyShow.

The company said that JioCinema continued to strengthen its position as one of the leading digital destinations for sports and entertainment content in India.

“JioCinema was the home of multiple sporting events during the quarter including IndiaAustralia T20 series, IPL and WPL auctions, women’s cricket (vs England and Australia), ISL and several other premium properties,” it said.