Network18 Media & Investments reported a consolidated net loss of ₹152.31 crore for the second quarter ending September 30, 2024, widening from ₹119.18 crore in the same period last year. The increase in losses is attributed to significant investments in sports and digital assets, particularly within Viacom18, the company’s entertainment arm. Despite the expanded losses, Network18’s revenue from operations showed a modest 1.6% growth, reaching ₹1,825.18 crore, compared to ₹1,865.50 crore in the corresponding quarter of the previous year.
The company’s news business, bolstered by a 6% growth in revenue, performed well, though the overall profitability was impacted by expenditures in digital and sports segments. Total expenses for the quarter climbed by 1.64% to ₹2,243.13 crore.
Network18 saw a 5.9% increase in revenue from its news division, largely driven by digital advertising, while television ad revenues faced a downturn due to industry-wide declines in the news genre’s advertising volume. On the entertainment side, revenue fell by 5.4%, attributed to the lack of big-ticket movie releases during the quarter, a factor that contributed to a ₹330 crore dip in revenue.
The company also completed a major merger, consolidating TV18 Broadcast and e-Eighteen.com under one entity. This amalgamation, effective from April 2023, has created what is now considered India’s largest platform-agnostic news media network. This merger is expected to streamline operations, optimize costs, and enhance revenue opportunities.
Network18’s Chairman, Adil Zainulbhai, expressed optimism about the merger, stating that with a diversified portfolio of TV channels and digital platforms, the company is well-positioned to become India’s most preferred news network.
Additionally, JioCinema continues its rapid growth, surpassing 16 million paid subscribers and maintaining its position as the fastest-growing subscription video-on-demand (SVOD) platform in India.
Key Highlights:
- Network18 posted a widened Q2 net loss of ₹152.31 crore, driven by significant investments in sports and digital ventures, particularly in Viacom18.
- The news business saw a 5.9% revenue growth, with digital advertising compensating for the decline in TV ad revenue, while the entertainment segment recorded a 5.4% drop.
- Network18 completed a merger of its news businesses, creating India’s largest platform-agnostic news media network, streamlining operations and optimizing costs.