TV18 Broadcast turned corner during the quarter ended December, reporting a consolidated net profit of Rs. 21.3 crore, driven by strong growth in broadcasting and distribution revenues.
TV18 Broadcast turned corner during the quarter ended December, reporting a consolidated net profit of Rs. 21.3 crore, driven by strong growth in broadcasting and distribution revenues. Quarterly revenues stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter. The company had been reporting net losses at the consolidated level for five successive quarters till September 2012.
"Our net distribution income (subscription revenues minus carriage fee) has finally broken into positive territory and our recast balance sheet has helped us rationalize our interest payouts," said Raghav Bahl, Managing Director, Network18 in a press statement, adding, "we are now entering an exciting phase in our journey as we strengthen our existing operations and consolidate our regional acquisition."
The company recently raised Rs 2700 crore through a rights issue to fund its acquisition of Eenadu group-promoted ETV.
Advertising, the biggest contributor to broadcasting revenues grew 10 percent over last year to Rs 312 crore, a 27 percent gain sequentially. Subscription revenues vaulted to Rs 29 crore from Rs 3 crore during the September quarter, and distribution revenues surged 52 percent sequentially to Rs 144 crore.
"Our broadcast operations grew their margins despite softness in the advertising environment," said Group CEO B Saikumar, said in the press statement.
"IndiaCast has hit a positive trajectory and stays with its focus of correcting the group's distribution revenues upwards and adding more brands and partners to its stable. The News Network will further consolidate its leadership position with the addition of ETV News to the stable," he said.
IndiaCast is a 50:50 joint venture between TV18 and Viacom, managing the two companies’ distribution operations. TV18’s quarterly operating profit (EBITDA) was Rs 48.1 crore. Operating profit margin at 9 percent was held in check by a 38 percent quarter-on-quarter jump in marketing, promotional and production expenses.
The company said its general news operations broke into positive territory with 10 percent margin. Operating profit for the business news segment trebled year-on-year with the company attributing it to a significant improvement in net distribution income. Both CNBC TV18 and CNBC Awaaz continued to be market leaders during the quarter, the company said.
TV18 has commenced the integration of ETV non-Telugu News and Entertainment operations.
"We believe that the opportunity is large and will require significant re-investment into content and marketing to re-gain audience traction and establish the channels as leaders in their niche genres. This re-investment could entail risks to the ETV profitability during the re-investment phase," the release said.
Disclaimer: moneycontrol.com and TV18 are both part of Network18 Media and Investments.
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