The media company reported a 14.6 percent on-year rise in consolidated revenue from operations to Rs 1,621.1 crore
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Mumbai: Network18 Media & Investments on May 3 reported a 58.1 percent year-on-year rise in its consolidated net profit to Rs 61.6 crore for the quarter ended March.
The media company reported a 14.6 percent on-year rise in consolidated revenue from operations to Rs 1,621.1 crore.
The strong revenue growth was led by its news broadcasting and digital operations which benefited from a surge in advertisement revenues as well as user growth.
“The financial performance has vindicated our decision of investing in new businesses a few years ago which have started showing encouraging positive results,” said Chairman Adil Zainulbhai in a press statement.
“We have set ourselves an ambitious target to become a leading player in the digital space while strengthening our core TV offering,” Zainulbhai added.
The company reported its best financial performance ever in 2021-22 with all three segments—TV news, entertainment and digital news—chipping in.
The digital news segment came out as the highlight as it turned profitable in 2021-22 and delivered margins close to the group’s overall margins, a sharp turnaround from barely breaking even a year ago, Network18 Media said.
Network18, however, said that the high inflation environment, further worsened by the Russia-Ukraine conflict, impacted consumer demand and, consequently, advertising spends.
The broadcasting business reported firm top line growth as operating revenues rose 10 percent on-year to Rs 346 crore in the quarter ended March.
Revenue grew 14 percent in 2021-22 led by growth in advertising revenues across all three segments of business, regional and national news, Network18 Media said.
Operating margins improved by 470 basis points to 20.7 percent in 2021-22, the highest ever, as continued cost controls limited growth in expenses to only 8 percent, helping the business realise operating leverage, the company added.
The top line performance of the entertainment division was also strong in the quarter as operating revenue grew 11 percent on-year to Rs 1,150 crore.
The entertainment business delivered its highest ever annual operating profit of Rs 777 crore, up 23 percent, in 2021-22, while maintaining strong margins of 18.2 percent, the company said.
Advertising growth in 2021-22 was helped by a lower base but even compared to 2019-20 (pre-Covid), the business delivered strong growth, Network18 Media said.
The segment’s subscription revenue, however, remained flattish during the year and movie revenue returned to a semblance of normalcy in the second half, the company added.
Digital news
The digital news business was the standout of the quarter for Network18 Media as operating revenues soared 32 percent on-year to Rs 80 crore and operating profit climbed 77 percent on-year in the quarter to March.
Moneycontrol, its digital business news portal, recently became the most-visited digital business news portal in India with engagement metrics that far surpassed its nearest rival.
Moneycontrol registered 81 percent growth in unique visitors in 2021-22 and the platform has seen a sharp growth in reach and engagement, Network18 Media said.
For 2021-22, the digital news division clocked revenue growth of 49 percent on an annualised basis while delivering its first ever operating profit of Rs 38 crore.
MoneyControl Pro, the subscription-based offering, registered strong growth in its paid subscriber base during the year, crossing its target of having more than 500,000 paid subscribers.
On May 2, shares of Network 18 Media ended 1.9 percent lower at Rs 84.6 each on the National Stock Exchange. The Indian stock market is closed on May 3 on account of Eid.
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Network18 and TV18 had announced their rights issues, of up to Rs 2,700 crore each, way back in January.
The two companies believe in fast-evolving media and entertainment landscape, TV18 can drive value-addition and synergies across the multi-platform group
Shares of Network18 Media & Investments traded 4.89 percent higher at Rs 30.05 on the BSE. RIL stock traded at Rs 1,465
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