Network18 Media and Investments, driven by a sharp improvement in profitability across the news–TV and digital–and entertainment businesses, reported its highest ever quarterly operating profit at Rs 373 crore for the quarter ended December 31, 2021. Network18’s quarterly revenues of Rs 1,657 crore, up 16.5 percent year-on-year, too was the highest ever in a single quarter.
In other highlights, revenue growth in regional markets helped the regional news portfolio deliver its first profitable quarter.
Profit before tax rose 31 percent YoY to Rs 337 crore, driven by growth in revenues, controlled operating expenses and lower finance costs.
Digital advertising continued to gain traction with increasing adoption of the medium by both users and advertisers, the company said in its release.
Digital news continued to grow at a strong clip with advertising revenue more than two times compared to FY20. The business has been leveraging its strong reach and growing digital consumption to capture a higher share of digital advertising pie, the release said.
Buoyed by a strong advertising demand, Network18’s year-to-date advertising revenues have already surpassed the full-year figure for FY21.
The digital news segment has exhibited a continuous revenue growth over the past 18 months, driven by the increasing reach of the portfolio within an expanding digital universe, the company said in its release. The 41 percent YoY increase in revenue has been accompanied by growth in profitability, with the business delivering margins similar to the group within a year of breaking even. Operating margin for the quarter was at 21.2 percent.
The reach of the Network18’s digital news assets grew by over 50 percent YoY driven by the consistently expanding topics under coverage and innovative reporting formats especially focused on mobile-first internet users. With 50 percent-plus reach amongst the internet users and presence across genres (general news, finance, cricket) and languages, Network18’s suite of websites attracts a diverse audience and offers an ideal platform for advertisers to connect with their consumers.
Moneycontrol continues to be India’s leading digital business and finance destination. The current monthly active users of its app is 55 million-plus; 75 percent higher than last year. Its subscription service MC Pro is moving towards its target of 5 lakh paid users by end of FY22.
Commenting on the financial performance, Adil Zainulbhai, Chairman of TV18, said: “We are building a strong and sustainable media franchise which not only delivers quality content to Indian audience but also value to the shareholders.”
He said the group had over the last few years taken several significant steps which have helped achieve the turnaround on the profitability front and a visible shift in the margin profile of its businesses.
“As content consumption continues to grow across mediums, our aim is to build platforms of choice for consumers looking for news and entertainment content in their local languages, movies and leading sports events,” he said.
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