As part of its fourth-quarter results, Network18 Media & Investments on Wednesday reported more than 3-fold, 241.9 per cent, increase in consolidated profit at Rs 205.8 crore, compared to Rs 60.19 crore in the corresponding period, led by lower operating cost.
Consolidated profit in the financial year 2020-21 grew by 873.6 per cent to Rs 546.59 crore, compared to Rs 56.14 crore in the last fiscal, led by improved operating profitability and 33 per cent lower interest costs. In the same period, revenue declined 12.2 per cent to Rs 4,705.11 crore compared to the previous year.
Consolidated revenue from operations declined 3.4 per cent to Rs 1,414.7 crore in the fourth quarter of the financial year, from Rs 1,464.51 crore in the same period last year.
“The group has successfully dealt with the challenges posed by the COVID pandemic, and posted much improved profitability in a difficult year. The connect of our diverse brands with consumers has only grown during this period. This bears testament to our business process resilience and innovation in adversity; factors which have proved critical and will continue to remain of prime importance as we navigate any future challenges,” said Adil Zainulbhai, Chairman of Network18.
“While TV News ratings remained under blackout since October 2020, our News channel portfolio was largely unaffected as it grew across revenue streams, including virtual events,” said the company, adding Digital News maintained its growth trajectory, rising around 50 per cent year-on-year for the third consecutive quarter.
The company said its subscription revenue was flat YoY in Q4. “Domestic subscription revenue growth due to improved tie-ups in TV and Digital (both B2B and B2C) offset stress in International. Subscription revenue remained largely resilient to COVID impact, and grew 1 percent in FY21,” the company explained.
“Entertainment operating margins are at a healthy around 19 per cent in Q4. News margins rose to highest-ever levels of around 27 per cent in Q4, led by 5 per cent YoY revenue growth. Digital News maintained its break-even performance,” the company said.
TV News margins near-doubled year-on-year to 16 per cent, as ad-revenue grew through the year, and entertainment margins at 18.6 per cent YoY are highest ever, led by cost efficiencies, said the company, adding digital News broke even on a full-year basis, driven by accelerated revenue growth.
Group debt sharply reduced to Rs 2,414 crore in March 2021, from Rs 3,265 crore in March 2020, Network18 said.
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