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Last Updated : Oct 27, 2020 07:17 PM IST | Source: Moneycontrol.com

Network18 Media reports Q2 profit at Rs 68 crore, EBITDA more than doubled

Network18 said the broad-based cost controls have been implemented across business lines, including renegotiation of contracts and reining in all discretionary expenses.

 
 
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Network18 Media & Investments on October 27 reported a consolidated profit of Rs 68 crore for the quarter ended September 2020, against a loss of Rs 25 crore in the year-ago period.

"Working capital optimization, a tight leash on debt, and softer interest rates have resulted in major savings in finance costs, boosting profitability," the company said.

Consolidated revenue from operations fell 9.6 percent year-on-year to Rs 1,061 crore during the quarter, but is firmly on the road to a full recovery, said the company in an exchange filing.

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"The group businesses have recovered from the impact of the COVID-19 pandemic to a very large degree. This has been achieved through a multi-pronged approach of ensuring business continuity through rejigging processes, innovatively reviving alternative revenue streams, and focusing on aligning content distribution strategy with market opportunity," Adil Zainulbhai, chairman of Network18.

"As we head into the festive season, the underlying trends on both viewership and monetization are supportive, and we are emerging stronger than ever," he added.

At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to Rs 166 crore in Q2FY21, rising 114 percent compared to Rs 77 crore in the quarter ending September 2019.

Margin expanded sharply to 15.6 percent during the quarter, from 6.6 percent in same period the previous year, driven by the jump in EBITDA margins for both News and Entertainment verticals to healthy levels.

The digital business swung into profitability on sharp ad-growth and rising subscription revenue, Network18 said, reporting that the first half FY21 operating margin at 10.3 percent (against 5.1 percent YoY) was the highest in four years despite COVID-19 drag.

Advertising revenues rebounded as economic activity restarted on tapering of lockdowns, the company said.

"'News business' advertising fully recovered, as viewership has settled at a higher level. Entertainment recovery is near-complete and YoY ad-revenue dip reduced to single-digits now. Digital surging is ahead on strong traffic trends for flagship properties," it explained.

Network18 said the broad-based cost controls have been implemented across business lines, including renegotiation of contracts and reining in all discretionary expenses.

"While we continue to review cost-structures on an ongoing basis, concerted efforts to rebase them in the new normal have driven efficiencies through the system," it added.

Disclaimer: Network18 is the parent company of TV18 Broadcast and Network18 Digital that publishes Moneycontrol.
First Published on Oct 27, 2020 07:17 pm
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