Network18 Q1 PAT turns positive at Rs 19 cr vs Rs 90cr loss

The Network18 Group announced its results for the quarter ending June 30, 2013, today.

Following is the media release by the company: Key Highlights for Q1 2013-14
*Consolidated operating revenues for the quarter stood at Rs 556.6 crore on a reported basis. The company turned in a profit after tax of Rs 18.9 crore for the quarter.
*Reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs 396.2 crore for the quarter.
*Advertising Revenues grew 6 percent year on year. Net distribution income grew 32 percent sequentially to Rs 34.9 crore this quarter, swinging from a loss of Rs 16.0 crore during Q1FY14. Reported operating profit for the quarter stood at Rs 23.8 crore, up 57 percent over previous year. The company turned in a profit of Rs. 5.9 crore after tax for the quarter on the back of a significantly deleveraged balance sheet as compared to a loss of Rs 23.5 crore in the previous year.
*Our Digital Content and eCommerce Business grew to Rs 106.9 crore, registering a growth of 174 percent, over the corresponding quarter during the previous year (adjusted for the sale of Newswire18).
*We entered into an agreement with OCP Asia Ltd. to raise growth capital of USD 30 million in our premier virtual commerce business – HomeShop18. During the quarter, we profitably sold our entire stake in a Capital18 portfolio company - Webchutney. Also Read: TV18 Q1 PAT turns positive at Rs 6cr; Q1FY13 loss Rs 24cr
Announcing the results, Raghav Bahl, Managing Director, Network18 said, "The macroeconomic environment continues to be challenging and growth prospects remain uncertain. Despite this backdrop, our core TV and Digital businesses turned in a steady performance. We continued the profitable monetization of our investments and raised growth capital in HomeShop18. There were pockets of weaknesses in our portfolio and we are committed to improving segments that are not meeting expectations. We have a strong portfolio of media businesses and remain confident of unlocking their value for our stakeholders."
Commenting on the results for the quarter, B. Saikumar, Group CEO, said, "The core Television and Digital businesses got off to a stable start in the new fiscal year. Our entertainment broadcasting business showed strength and the ecommerce businesses grew strongly. While our news and infotainment businesses have seen distinct softness in advertising, our entertainment businesses led by Colors have performed well on this front. Motion pictures have seen losses this quarter and the management is confident of stemming them in the immediate term. Net Distribution Revenues from IndiaCast are on a strong growth trajectory and we continue to be enthused by its growth potential. Our e-commerce businesses continued their stellar growth and the digital content business grew steadily as well. We remain confident of delivering a strong year ahead." Click on attachment for more details. Disclaimer: Moneycontrol.com is part of the Network18 Group.

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