TV18 Broadcast Limited, the broadcasting subsidiary of Network18 reported a loss before tax of Rs.214.2 crore for the quarter ended June 30, 2014 (Q1-FY15). This is after considering a one-time exceptional adjustment of Rs 223.33 crore. Operating profits was down 63% to Rs 18.2 crore from Q4-FY14. However, it was up 42% from the corresponding quarter last year. Profit before tax (excluding exceptional items) was Rs.9.1 crore, down 80% from the previous quarter.
Exceptional Items: The company reported that during Q1-FY15, certain tangible and intangible assets to the tune of Rs.122.27 crore became obsolete, provisions of non-recoverable and doubtful loans/advances/receivables to the extent of Rs.87.70 crore were written-off, and Rs.13.31 crore severance pay and consultancy charges were paid, which together have been disclosed under exceptional items.
The company posted total revenue of Rs.527.7 crore for the quarter, down 6.3% from Q4-FY14. Note that this revenue includes the entire revenue generated from its broadcasting operations (news and entertainment operations), including Panorama Television, Prism TV and ETV, 50% share of Viacom18, IBN Lokmat, IndiaCast (a joint venture between TV18 and Viacom18), and its motion picture business.
It’s worth noting that Reliance Industries, through Independent Media Trust (IMT), acquired the controlling stake of Network18 in May this year.
Media operations revenue decline
TV18 reported media operations revenue of Rs.513.4 crore for Q1-FY15, which is down 7% from Rs.550.3 crore reported in Q4-FY14. Film production and distribution revenue reported for Q1-FY15 is Rs.14.3 crore, marginally down from Rs.14.5 crore reported in Q4-FY14. Total revenue is down 7% to Rs.533.6 crore, over the previous quarter.
TV18 hasn’t shared segment-wise financial results of its digital content business. It has only shared the numbers for the overall media operations, as detailed above.
Network18 also stopped disclosing financial information pertaining to its digital content and commerce business, starting this quarter.