logo-network18Network18 Media and Investments observed a 40% rise in consolidated net losses to Rs. 363.53 million in the first quarter of fiscal 2010, compared to Q1-09. Operating expenses soared this quarter reaching almost double that in Q1 last fiscal at Rs. 2357.22 million. The company’s net asset value is Rs. 153.92 per share.

On a standalone basis, Network18 reported a net loss of Rs.130.88 million as operating expenses more than doubled compared to the previous quarter at Rs. 88.73 million. Also, revenues fell 75.3% compared to the first quarter of last fiscal to Rs. 57.38 million. In Q1-09, the company had made a profit of Rs. 45.79 million. Earnings per share fell from Rs. 0.89 to -Rs. 1.36.

Details: Release | Financials

How The Subsidiaries Fared

Subsidiaries of Network18 include TV18, which runs news channels CNBC-TV18, CNN-IBN, IBN Lokmat and IBN7; Viacom18, which operates entertainment channels such as Colors, MTV, Nickelodeon, VH1; multi-platform shopping division HomeShop18; Setpro18; publishing house Infomedia18; Newswire18; Events18 and Sports18. The company recently raised $25 million from SAIF Partners by issuing shares. It will strengthen its brand equity along what it calls the “emerging themes” of convergence, digitisation and regional media. It expects its cross-integration strategy to ensure stability in the long term across its various businesses.

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Consolidated revenues rose 63% year on year to Rs. 2.265 billion. Operating margins fell to -4.06% from 6.96% in Q1-09. EPS without ESOP charge out rose to -Rs. 3.47.

HomeShop 18‘s revenues from commissions more than tripled to Rs. 89.28 million. HomeShop18 executed over 2.3 lakh orders during the quarter, almost 71% more than Q1-09. It will be tapping cable and satellite (DTH) homes to reach the 300 million strong urban middle class which is its target audience, according to a corporate presentation dated June, 2009.

Setpro18‘s revenues rose 36% to Rs. 184.1o million, while the events and sports management divisions observed combined revenues climbing to Rs. 40.28 million from Rs. 20.27 million in Q1-09.

The investment advisory services division acquired by Network18 early in the quarter from Capital18 generated revenues of Rs. 3.16 million. Capital18 invests in technology and media companies such as Tangerine Digital Entertainment (whose social networking portal  Campus18 has been closed for refurbishing for months now…probably shut down), voice search firm Ubona, ad agency Webchutney and its ad network company Networkplay, Star Gaze and online education portal 24×7 Learning. Read about Capital 18’s investments on Medianama.

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