Web18*, the Internet and mobile business from the Network18 group, has reported an operating profit for the full year for the first time in recent memory – the company reported Rs 1 crore in operating profit, compared to an operating loss of Rs 9.27 crore the previous fiscal. Operating revenue for the full year was up around 16.73% to Rs 85 crore, compared to Rs 72.82 crore last fiscal, and operating expenses were up marginally to Rs 84 crore, from Rs 82.09 crore. The company has not reported any post tax figures, but the last fiscal, it had reported a net loss of Rs 26.69 crore, after deferred tax.
Quarterly Results: Budget Impact
Coming off what is typically the best quarter for the company (the fourth quarter of the fiscal year), primarily because of the Union Budget announcement, which boosts revenues for MoneyControl.com, Web18 reported operating revenues of Rs 25 crore, up 8.7% year on year. Operating profit for quarter for the company rose to Rs 3 crore from Rs 2 crore last fiscal.
The company, in a statement, says that Moneycontrol.com had its best month ever in February 2011 with over 17.9 million total visits for the month as per Comscore. Not surprising, since the announcement of the Union Budget for the 2011-12 fiscal year (FY12) took place on the February 28th 2011.
This fiscal, Web18 has not reported any net results, and has rounded off figures, which leads to the bizarre situation that if you add up the rounded off figures reported individually for the last four quarters, it shows a net loss of 1 crore (i.e. operating revenue of 84 crore, instead of Rs 85 crore, operating expenses of 85 crore instead of Rs. 84 crore and operating loss of 1 crore). Note to Network18: disclosing revenue down to a couple of decimal places won’t hurt you.
Over the last three years – adding quarter on quarter information in the chart above – Web18 reported operating revenues of Rs 222.27 crore, Operating Expenses of Rs 269.56 crore, and an operating loss of Rs 47.31 crore.
Note that the company – apart from e-eighteen limited (which owns MoneyControl.com) – was expected to be amalgamated into Network18 at the beginning of this fiscal year. The web operations of Infomedia18 were also expected to be integrated into Network18. Infomedia18 recently relaunched Yellowpages.co.in.
Last quarter, the company had said that Bookmyshow.com had reported an operating profit. No clear indication this time – only that “Bookmyshow.com continued its strong revenue growth momentum.”
*Disclosure: Network18 is an advertiser with MediaNama