Network18 reports profit, reflecting Viacom18 merger

Network18 Media & Investments Ltd. today announced its financial results for the December quarter, reporting a profit of ₹25.68 crore. While revenue from operations reached ₹1,360.50 crore, the company noted that year-over-year comparisons are not directly possible due to the significant impact of the merger of its subsidiary, Viacom18, with Star India.
Key Financial Highlights:
• Consolidated Profit: Despite the merger's impact, Network18 reported a consolidated profit of ₹25.68 crore for the quarter.
• Revenue Growth: Revenue from operations stood at ₹1,360.50 crore.
• Exceptional Items: A significant exceptional item of ₹1,425.73 crore was recorded, primarily attributed to the derecognition of subsidiaries.
• Standalone Performance: On a standalone basis, Network18's revenue was ₹476.41 crore, and profit reached ₹3,431.94 crore, driven by these exceptional gains.
• Merger Impact: The company recorded exceptional gains of ₹3,498.21 crore related to the Viacom18 merger and the conversion of preference shares held by Reliance Industries.

Operating Performance:
• Revenue Growth: Operating revenue for the quarter was ₹476 crore, marginally higher year-over-year.
• Advertising Challenges: The company noted a challenging advertising environment, with soft consumer demand impacting advertising spends.
• Industry Trends: The TV news industry experienced a slight quarter-over-quarter increase in advertising volumes but a 11% year-over-year decline, impacting revenue growth.1 The digital segment continued to show growth in advertising revenue.2
Viacom18 Merger and Outlook:
• Joint Venture: The merger of Viacom18 with Star India was completed on November 14, creating a major player in broadcasting and digital streaming. Network18 retains a 6.3% effective economic interest in the joint venture.3
• Management Commentary: Chairman Adil Zainulbhai emphasized the successful restructuring of the business and expressed optimism about the growth of the television network and the digital business.

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