GST ad deferrals hit Network 18 revenue in Q1-18

BENGALURU: The GST implementation resulted in deferral of advertising spends in late Q1-18 (quarter ended 30 June 2017, current quarter) says Network 18 Limited.: While April-May witnessed robust revenue growth, June was substantially impacted by postponement in advertising spends. Nevertheless, The company believe that this is a transitory impact and GST shall drive the informal economy towards the formal channel in the long-run, which will push up advertising spends.

Overall revenue including proportionate share of JVs’ increased 3 percent year-over-year (y-o-y) in Q1-18 to Rs 8,360 million from Rs 8,140 million in the corresponding year ago quarter Q1-17.Segment operating loss (EBIDTA) declined to Rs 510 millon in Q1-18 as compared to Rs 580 million in Q1-17. Revenue as IND-AS in Q1-18 was lower at Rs 3,210 million as compared to Rs 3,520 million in Q1-17. Operating loss as per IND-AS declined to Rs 460 million as compared to Rs 740 million in Q1-17.

Network18 chairman Adil Zainulbhai said,“The digital space in India is witnessing an insatiable appetite for quality content, and Network18 continues to be at the forefront of providing the same in a frictionless manner across genres. We aim to marry vernacular and digital opportunities in India with our strength in linear media to fulfil the rising demand for content that is both targeted and available on-demand.”

Zainulbhai continued, “The industry is navigating through a period of flux in both the advertising environment and the subscription business model; but underlying growth tailwinds are intact and bode well for committed players. We believe that TV18 is well-positioned to capitalize on its strengths in content curation and creation of scalable platforms for seamless delivery. Our commitment to creating value for all our stakeholders is reflected in our continued investments into incubating segmented offerings, and consistently building on our areas of leadership.”

TV 18, the listed subsidiary of Network 18 reported 1.8 percent y-o-y decline in consolidated revenue in Q1-18 to Rs 2,170 million from Rs 2,210 million. TV18’s. TV18 owns and operates the largest network of channels – 49 in India spanning news and entertainment. It also caters to the Indian diaspora globally through 13 international channels. The company says that revenue growth from business news boosted TV18 standalone operating EBITDA. However, regional news witnessed softness in revenues and low profitability due to gestation losses. Entertainment revenues were aided by strong performance in niche genres and strength of the bouquet, it adds.

TV18 posted consolidated revenues of Rs. 6,280 million (including proportionate share of JVs) in Q1FY18, a 4 percent y-o-y growth. Profitability improved mildly, driven by business news performance and helped by steady ramp-up of the multiple new initiatives undertaken in Q1-17.

Tv18’s Total Expenditure in Q1-18 increased 2.9 percent y-o-y to Rs 2,520 million from Rs 2,450 million.TV 18’sEmployee Benefits Expense in the current quarter increased 23.4 percent y-o-y to Rs 950 million from Rs 770 million. TV 18’2 Finance costs declined 20 percent y-o-y in Q1-18 to Rs 40 million from Rs 50 million.

TV18’s Other expenses in Q1-18 declined 13 percent to Rs 870 million from Rs 1,000 million.TV 18’s Distribution, advertising and business promotion expense reduced 3.8 percent y-o-y in Q1-18 to Rs 510 million from Rs 530 million.

Also Read:

Network18 transfers Burrp in internal restructure

Network18 FY17 consolidated revenue up by 5% from last year

Network 18 board approves amalgamation of subsidiaries; adjusted operating profit down in Q3-17

Latest Reads
Religious most benefitted genre in Chrome DM week 28

With a growth of 2.05 per cent as compared to last week (27), the religious genre marked the highest opportunity to see (OTS) among all categories in week 28 of Chrome Data Analytics & Media.

Television TV Channels Viewership
BARC India plans expansion of metre homes to 44,000 by this FY

Rural India is getting in the limelight. TV ratings body BroadcastAuidence Research Council (BARC) is expanding metre homes to 44,000 by this financial year.

Television TV Channels Viewership
Ranjana Mangla appointed national revenue head of India Today TV

Ranjana Mangla has been appointed the national revenue head of India Today TV. She will report to the chief revenue officer Rahul Kumar Shaw and will be based out of the ITG Mediaplex, Noida.

Television TV Channels News Broadcasting
Discovery chronicles the harrowing story and extraordinary rescue of the thai soccer team that is captivating the world in Operation thai cave rescue

From the moment the heartbreaking news broke that 12 young Thai soccer players and their 25-year-old coach were stuck in a cave complex near the Myanmar border

Television TV Channels Factual & Documentary
Zee Cinema to air the animated movie Smurfs - The Lost Village on Saturday, 21st July at 12pm

If you’ve watched The Smurfs and The Smurfs 2, you’re probably aware of the tiny blue creatures with white clothes and droopy hats living out their lives in blissful coexistence.

Television TV Channels Movie Channels
TLC to premiere Curvy Bride Boutique for plus size brides

TLC, India’s go to lifestyle channel, is all set to premiere the most popular and talked about UK based show Curvy Bride Boutique from 16th July at 10 PM.

Television TV Channels Factual & Documentary
India’s leading New Age News Brand set to take Television by storm

New-age digital brand is about to take the television screens by storm.

Television TV Channels News Broadcasting
FIFA legal action against BeoutQ for WC piracy

MUMBAI: FIFA will be taking legal action against Saudi Arabia-based BeoutQ, a pirated TV service operating in the Middle East and North Africa (MENA), which continues its illegal piracy of 2018 FIFA World Cup broadcasts, according to an official statement, carried by the Saudi Press Agency (SPA)....

Television TV Channels Sports
Viacom18 launches Colors Tamil HD in Singapore on Star Hub

After entering the Tamil GEC market, Viacom18, one of India’s largest entertainment conglomerates, has launched Colors Tamil HD on Star Hub, (channel no. 132) in Singapore.

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories