Reliance Industries Ltd. (RIL) reported a 2.1% year-on-year decline in operating revenue for its media business in the second quarter of FY25, attributed to a significant drop in revenues from its movie segment. According to the company, this segment’s performance was affected due to the absence of major film releases during the quarter, a project-based activity that relies on consistent big-ticket releases.
Despite the media revenue decline, RIL’s digital arm, Jio Platforms, saw a remarkable 23.4% rise in net profit, reaching Rs 6,539 crore, with an 18% increase in revenue from operations amounting to Rs 31,709 crore. The average revenue per user (ARPU) surged to Rs 195.1 per month, underscoring the strong performance of the telecom and digital businesses.
Key Highlights:
- Media Segment: The entertainment business recorded a 5% drop in operating revenue, primarily due to the absence of film releases, compared to two major films launched by Viacom18 Studios in Q2 FY24. However, this was partially offset by a boost in subscription revenue, thanks to new pricing strategies and increased monetization of the sports portfolio.
- News Portfolio: Reliance’s news segment saw a 6% revenue growth, driven by the digital segment’s advertising revenue across brands. However, the TV advertising environment remained soft, with ad volumes for the news genre declining by over 20% year-on-year.
- JioCinema’s Growth: JioCinema, a Viacom18 venture, continued its rapid expansion, reaching 16 million paid subscribers, marking a 2x growth quarter-on-quarter. The third season of Bigg Boss OTT was a significant driver of subscriptions, alongside the popularity of Bigg Boss Marathi.
- Paris Olympics 2024 Coverage: Viacom18’s comprehensive coverage of the Paris Olympics 2024 across JioCinema and Sports18 TV channels drew over 170 million viewers, with a total watch-time exceeding 15 billion minutes, setting a new record for Olympic viewership in India.
- Colors Channel Performance: Colors continued to strengthen its position as the No. 2 Hindi prime-time entertainment channel, with a 10% growth in ratings quarter-on-quarter. The network also saw strong performances from regional channels, with Colors Bangla Cinema leading the Bengali movie genre.
- Network18’s Leadership in News: The Network18 TV news bouquet maintained a dominant position with an 11.9% viewership share in the news genre, driven by consistent viewership growth across markets. News18 India, CNN News18, and CNBC TV18 remained leaders in Hindi, English, and business news, respectively.
Jio Platforms’ Q2 FY25 Financials:
- Consolidated net profit rose by 23.4% to Rs 6,539 crore.
- Revenue from operations grew 18% to Rs 31,709 crore.
- Gross revenue increased to Rs 37,119 crore, a 17.7% rise from the previous year.
The robust growth in JioCinema subscriptions, ongoing investments in sports, and strong performances in digital and news segments illustrate RIL’s strategic focus on expanding its media and entertainment footprint across India, despite challenges in the movie segment.