Network18 Media and Investments has made a turnaround posting an operating profit of Rs. 81.1 million in the December 2009 quarter, compared to losses of Rs. 414.15 million in the previous quarter.

After two quarters of net losses piling up, the December 2009 quarter saw a significant reduction of net losses, down 73.7 percent (sequentially) to Rs. 219.18 million, this is a 50 percent decline compared to net losses in December 2008 quarter. The company’s revenues rose 30.8 percent quarter on quarter to Rs. 3.7 billion. Operating expenses continue to surge every quarter, growing 11 percent sequentially to Rs. 3.6 billion. Operating margins are back up from -14.64 percent to 2.19 percent.  Consolidated earnings per share have risen from -Rs.8.6 in the previous quarter to -Rs.1.92.

Details: Financials | Release

The Group

Companies in the Network18 group include broadcasting companies TV18 (results were reported earlier here) and IBN18 (results here), digital media company Web18 (results), publishing house Infomedia18 and wire agency Newswire18. The group also owns stake in broadcasting company Viacom18, multi-platform shopping division HomeShop18E18Sports18, the distribution arm Setpro18 and its investments advisory division. It also runs The Indian Film Company (TIFC).

Standalone net losses have reduced 52.5 percent to Rs. 50.8 million from Rs. 107.11 million reorded in the September 2009 quarter, a reduction of 65.7 percent year on year. In Q409, the company had recorded standalone profits of Rs.

HomeShop Revenues Up 40% QoQ, Setpro Rev Down

HomeShop18, the shopping business of Network18, reported revenues of Rs. 152.23 million, double that registered in the same quarter last year (Rs. 75.84 million) and 40 percent higher than the September 2009 quarter. HomeShop is run by Newswire18TV18 Home Shopping Network Ltd, in which SAIF Partners holds preference shares, according to a company presentation on the group structure. GS Home Shopping, South Korea’s largest home shopping retailer, invested $18.5 million in Homeshop18 in November.

A dismal performance by Setpro18 Distribution, whose revenues have fallen 26.7 percent sequentially to Rs. 210.21 million, after growing in the past 2 quarters.

The events and sports management division is on its road to recovery this year and has registered revenues similar to that recorded in the same quarter last year. Over the past 2 quarters the division has picked up pace – from Rs. 52.32 million recorded in September quarter, revenues are now at Rs. 102.3 million. Network18 owns 66% in Setpro18.

Network18’s advisory services division, which it acquired from Capital18 in the first quarter of the year, continues its downward journey. From Rs. 3.16 million in the first quarter, revenues fell to Rs. 1.28 million in the second and is now at Rs. 0.91 million.

The Indian Film Company witnessed a 2.5 times leap in operating revenues sequentially to Rs. 316.38 million. Network18 owns 18.18% in TIFC, which invests and produces movies. The company has 4 films slated for release in the fourth quarter:  “Striker”, “Road Movie”, “Kaun Bola” and “Banda yeh Bindaas hai”. In the December quarter, it signed up deals worth Rs. 240 million for satellite syndication of films in its library, according to a notice on its site.

Newswire18 has experienced a 6 percent increase in revenues to Rs. 83.77 million quarter on quarter, and is 29.6 percent higher year on year. Operating profits more than doubled to Rs. 5.39 million. In the same period last year, the company made operating losses of Rs. 11.1 million. Net losses have reduced 30.7 percent sequentially to Rs. 9.2 million.

Revenues from investment activities have not been disclosed in the quarter.

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