TV18 Broadcast, a subsidiary of Network18, has reported a consolidated profit of Rs 2 crore for the quarter ended June 2020 compared to Rs 23 crore recorded in the corresponding quarter of the last fiscal.
Consolidated operating revenue fell by 35 percent to Rs 776 crore in Q1 FY21, compared to Rs 1,198 crore in the year-ago.
"COVID-19 linked clampdown on spending by advertisers dragged advertising revenues sharply, especially on Entertainment. However, TV subscription revenue remained resilient, and Digital subscriptions have accelerated which both limited the fall in operating revenue. Viewership in both TV and Digital media rose substantially during the lockdown," TV18 said in its BSE filing.
The business strategy and operating methodology were re-engineered amidst a strategic review to address the current challenging environment, it added.
"The quarter that went by was the most challenging period that the industry has witnessed in many decades. Growing TV and Digital media consumption, a nimbler business strategy and further strengthened core brands in our portfolio…..we believe this is indeed the new normal," Adil Zainulbhai, Chairman of TV18 said.
Consolidated operating EBITDA during the quarter stood at Rs 44 crore, declining 43 percent compared to Q1 FY20.
Find All Earnings Related News Here
"Broad-based cost controls have been implemented across business lines, including renegotiation of contracts and reining-in all discretionary expenses. Both News and Entertainment verticals remained in the green despite Q1 being a seasonally weak quarter as well," TV18 said.
The viewership of the News segment nearly doubled and a spike was seen in Digital engagement as well. This helped the company further reduce the need for marketing and placement costs, it added.
The company said Entertainment programming costs were sharply lower due to re-runs being aired, providing a hedge to the ad-revenue fall. CNBCTV18.com saw a 3x QoQ growth in engagement, it added.
TV18 owns and operates the broadest network of channels – 58 in India spanning across News and Entertainment. The company also caters to the Indian diaspora globally through 16 international channels.
TV18 is the biggest News network in India by reach. The bouquet has the largest number of news channels in the country, and reached an industry-leading 560 million viewers in Q1.
CNBC-TV18 maintained #1 rank in the English Business News genre with 68.8 percent market share in Q1 FY21, while CNBC Awaaz continues to be dominant in the Hindi Business News genre with 53.89 percent market share.
News18 India held a 9.5 percent market share in HSM (Hindi speaking markets) in the highly competitive Hindi News genre, while CNN News18 raised its share to 13.2 percent and took the fourth spot in Q1 FY21.
The stock was trading at Rs 35.40 on the BSE, down 9.35 percent at 15:20 hours IST.Disclaimer: "TV18 Broadcast is a subsidiary of Network18 Media & Investments Ltd which publishes Moneycontrol."