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As on 22-Jul-2021  11:40

Network 18 Media spurts after reporting Q1 PAT at Rs 122 cr

Consolidated operating revenue soared 50% to Rs 1214 crore in Q1 FY22 over Q1 FY21. Pre-tax profit stood at Rs 144.02 crore in Q1 FY22 as against a pre-tax loss of Rs 57.94 crore in Q1 FY21. The Q1 earnings was declared after trading hours on Tuesday, 20 July 2021. The markets were closed on Wednesday, 21 July 2021 on account of Eid al-Adha.

Consolidated operating EBITDA grew 587% to Rs 188 crore in Q1 FY22 as against Rs 27 crore in Q1 FY21. Operating EBITDA margin stood at 15.5% during the quarter as compared to 3.4% during Q1 June 2020.

Concerted thrust on continuity of original content and monetization limited ad-revenue impact from second wave. Meanwhile, Network18 Media & Investments digital's reach expanded to 49% of India's internet population.

In Q1 FY22, Entertainment margin was at 17%; Ex-film revenue rose 63% Y-o-Y (year-on-year); News margin stood at 15%; revenue added 17% Y-o-Y and Digital News maintained its break-even as revenues rose 89% Y-o-Y.

Domestic ad-revenue much higher Y-o-Y due to first wave impact being significantly greater Entertainment advertising was impacted by the second wave, as ad-demand dipped in May-early June due to lockdowns. However, original content production and telecasts were continued by tackling lockdown-driven logistical challenges through bio-bubbles, shifting shooting locations, and other innovative/agile solutions. On the back of a full roster of compelling content, the portfolio was able to re-scale ad-revenue to the same levels as in Q1FY20 (which was not impacted by COVID-19 in any manner).

The TV News advertising remained resilient despite the second wave, led by a rise in news consumption and digital events replacing physical ones. As a result, our TV News ad-revenue remained in growth territory vs Q1 FY20, adjusted for election-linked advertising. The Digital News was minimally impacted by the second wave. Growing salience of the medium for advertisers as well as consumers (especially during COVID-19 peaks) supported revenue.

The subscription revenues grew 4% Y-o-Y as subscription remains growing and resilient to COVID-19. Domestic subscription revenue continued to grow led by expanded tie-ups in TV and Digital (both B2B and B2C). International subscription remains under stress. While Digital is rising fast off a low base, TV remained resilient and in growth territory. Domestic TV subscription dynamics remain in flux due to the proposed new tariff order (NTO 2.0).

Adil Zainulbhai, the chairman of Network18 Media & Investments, said: The second wave of COVID-19 could have been the dominant theme for the industry and indeed for us during the quarter .... but it wasn't. Led by the many learnings from the past year and a responsibility to serve the Indian audience, we have been able to continue our businesses relentlessly and profitably. While advertising hit a speed- breaker (primarily in entertainment), growing engagement on our platforms across TV and Digital make us confident of delivering for all our stakeholders even amidst a choppy environment. We continue to invest to ramp up offerings on our class-leading digital platforms, as their reach expands to highest ever levels. At the same time, we are selectively creating segmented offerings to enhance our TV portfolio in a capital-efficient manner.

Network18 Media & Investments is one of the largest media conglomerates with diversified but synergistic interests in television with its bouquet of fifty channels in India and thirteen international channels, besides filmed entertainment, digital content, magazines, digital commerce and allied businesses.

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