New Delhi: Network18 Media & Investments Pvt Ltd. (Network18) reported mixed results for the first quarter of FY25 (April-June 2024). While the company’s total revenue declined by 4% compared to the same period last year, reaching Rs 3,292 crore, there were bright spots in the digital and sports segments.
Revenue Dips But Expenses Rise
Despite the revenue decline, Network18, which encompasses TV news, entertainment, and digital properties, maintained operating revenue of Rs 3,141 crore. However, a rise in total expenses to Rs 3,509 crore resulted in a significant loss of Rs 198 crore for the quarter. This is in contrast to a profit of Rs 29 crore reported in Q1 FY24.
Digital and Sports See Strong Growth
Despite the overall revenue dip, Network18’s digital portfolio saw impressive growth. News18 (non-English) and Moneycontrol continued their leadership positions, while new digital initiatives are scaling up well.
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The company’s digital platform, JioCinema, emerged as a major highlight. JioCinema witnessed a record viewership during IPL 2024, reaching over 620 million viewers, a significant 38% increase year-on-year. This growth can be attributed to JioCinema’s disruptive subscription plans and its position as the fastest-growing SVOD (Subscription Video on Demand) platform.
TV News Performs Well During Elections
Network18’s TV news network also delivered positive news. The network achieved industry-leading revenue growth during the recent general elections, leveraging its strong market position across various genres. This segment also saw a significant improvement in profitability.
Merger Progress and Continued Investment
Network18 shareholders and creditors approved the proposed merger of Network18 Media & Investments Ltd., TV18 Broadcast Ltd., and e-Eighteen.com Ltd. on July 10th. The company is now awaiting NCLT and other necessary approvals to finalize the merger.
Network18 highlighted its continued investments in Viacom18 as a factor impacting overall profitability. However, the company believes these investments will lead to long-term growth.
Overall, Network18’s Q1 results present a mixed picture. While revenue dipped slightly, the company’s strong showing in digital, sports, and TV news during elections provides a positive outlook. The upcoming merger and ongoing investments in Viacom18 are expected to shape the company’s future trajectory.
