Network18 Media Q1 loss narrows to Rs 61 crore, digital subscriptions accelerate

Network18 Media & Investments has narrowed its consolidated net loss significantly to Rs 61 crore in the June quarter 2020 compared to loss of Rs 128 crore in the corresponding period last year, due to lower finance cost.

Consolidated operating revenue during the June quarter stood at Rs 807 crore declining 35 percent from Rs 1,245 crore reported in the year-ago period.

"The cost base was comprehensively reset across verticals as the organisation embraced tech-solutions and a leaner, nimbler approach. Operating EBITDA dipped on account of the revenue drag. However, aggressive and broad-based cost-controls across business verticals limited the fall. Consolidated PAT improved YoY led by a decline in finance costs," company said in its BSE filing.

Consolidated operating EBITDA fell by 41 percent to Rs 27 crore in the quarter ended June 2020, against Rs 46 crore in same period previous year.

Also read: TV18 Broadcast posts Q1 profit of Rs 2 crore, TV subscription revenues remain resilient

On the other hand, total expenses also declined sharply by 33.3 percent to Rs 872 crore in the June quarter YoY, which limited the fall in operating income.

Network18 said COVID-19 linked clampdown on spending by advertisers dragged ad-revenues sharply, especially on entertainment. However, TV subscription revenue remained resilient, and digital subscriptions have accelerated, it added.

"Viewership in both TV and digital media rose substantially during the lockdown. While news was relatively better off due to a surge in viewership, General Entertainment suffered due to no original content being produced during the lockdown and nil movie releases,0 "the company said.