Profit companies

Network18’s operating revenue grows 15% on improved earnings in news business

Media company Network18 Media and Investments Ltd reported on Tuesday a 58.1% year-on-year (YoY) increase in consolidated net profit to Rs 61.8 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter of last year, the company recorded a net profit of Rs 39.1 crore. Total revenue for the quarter increased by 14.6% year-on-year to Rs 1,621.1 crore from Rs 1,414.7 crore in the prior year quarter.

The company reported 15% growth in operating revenue, driven by growth in revenue from the film business and advertising. TV news revenue increased 10% year-on-year and the margin was 21.4%. Entertainment business revenue increased 11% year-over-year and margin was 16%. Digital news revenue grew 32% year-over-year and margin was 8%.

The company recorded the highest ever operating profit of Rs 1,080 crore (+36% year-on-year), thanks to the strong financial performance of all three verticals – TV news, entertainment and digital news.

Television news margins increased 500 basis points to 21%, with strong revenue growth and continued cost control providing operating leverage. The entertainment business maintained margins at over 18%, despite a substantial 26% year-over-year increase in operating costs. Digital information has experienced a clear recovery in its profitability thanks to the growth in advertising revenues.

Adil Zainulbhai, President of Network18, said, “Fiscal 22 was a remarkable year, not only from a numbers perspective, but also in terms of building a solid foundation on which the business can continue to grow. develop in the foreseeable future. The financial performance justified our decision to invest in new businesses a few years ago, which began to show encouraging positive results.”

EBITDA and margins in the TV News business have grown steadily over the past 4 years, with EBITDA increasing >7x and margins becoming 5x. The entertainment business achieved margins of over 18% despite significantly increasing costs as content investment in all markets increased. In addition, digital news turned profitable in FY22 and generated margins close to group margins, a sharp turnaround from the break even a year ago.

He said: “In the same vein, we have set an ambitious goal to become a leading player in the digital space while strengthening our core TV offering. We will continue to consolidate our “Digital First, TV Always” proposition, leveraging our existing strengths to grow in the segments where we are present and innovate in new markets with new and innovative offers.”

Zainulbhai said the strategic partnership Network18 has entered into for Viacom18 is a big step in this direction that will help set the company on a long-term growth path and create one of India’s leading content companies.

Warning:Network18 and TV18 – the companies that operate – are controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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