Network18 Media & Investments, driven by sharp improvement in profits in the news-TV and digital-entertainment businesses, reported its highest quarterly operating profit of Rs 373 crore for the quarter ended December 31, 2021. Network18’s quarterly revenue is Rs 1,657. crore, up 16.5 per cent year-on-year, was also the highest in a quarter.
Among other highlights, revenue growth in regional markets helped the regional news portfolio deliver its first profitable quarter.
Profit before tax increased by 31 per cent to Rs 337 crore due to increase in revenue, controlled operating expenses and lower finance costs.
The company said in its release that digital advertising continued to gain traction with the adoption of the medium by both users and advertisers.
Digital news continued to grow at a strong clip, with ad revenue more than two times that of FY20. The business is leveraging its strong reach and increasing digital consumption to capture a higher share of the digital advertising pie, the release said.
Buoyed by a strong advertising demand, Network18’s year-on-year ad revenue has already surpassed the full-year figure for FY11.
The digital news segment has demonstrated consistent revenue growth over the past 18 months, driven by the increased reach of the portfolio within an expanding digital universe, the company said in its release. Profitability increased with a 41 percent increase in revenue, with the business providing similar margins to the group within a year of Breaking Even. Operating margin for the quarter was 21.2 percent.
The reach of Network18’s digital news assets has grown by more than 50 percent on a year-on-year basis, driven by the ever-increasing topics under coverage and innovative reporting formats specifically focused on mobile-first Internet users. With over 50 percent reach among Internet users and presence across genres (general news, finance, cricket) and languages, Network18’s websites attract a diverse audience and provide an ideal platform for advertisers to connect with their consumers .
Moneycontrol remains India’s leading digital business and finance destination. The current monthly active users of its app are over 55 million; 75 percent more than last year. Its subscription service MC Pro is moving towards its target of 5 lakh paying users by the end of FY22.
Commenting on the financial performance, TV18 President Adil Zainulbhai said: “We are building a strong and sustainable media franchise that not only delivers quality content to the Indian audience but also values the shareholders.”
He added that the group has taken several significant steps over the years which have helped in achieving a paradigm shift on the profitability front and margin profile of its businesses.
“As content consumption continues to grow across all mediums, we aim to create the platform of choice for consumers looking for news and entertainment content in their local languages, movies and major sporting events,” he added.
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