TV18 Broadcast Limited, the broadcasting subsidiary of Network18 reported a net profit of Rs 5.9 crore for the quarter ending June 30, 2013 (Q1-FY14), up from Rs 23.5 crore loss in the same quarter last year. The operating profit was at Rs 23.8 crore for the quarter, up from 15.2 crore in Q1-FY13.
The company posted total revenues of Rs 396.2 crore for the quarter, up from Rs 293.7 crore in the same quarter last year. Note that this revenue includes the entire revenue generated from its broadcasting operations (news and entertainment operations), its infotainment operations (AETN18), 50% share of Viacom18, IBN Lokmat and 75% of its distribution operations through IndiaCast, a joint venture with Viacom18 and its motion pictures business.
Loss In General News Ops; Profits Decline In Business News Ops
Revenues from the news and infotainment business declined for the quarter: Rs 119 crore down from Rs 127 crore in the same quarter last year. The operating profit for the segment was at Rs 14.7 crore for the quarter, up from Rs 14 crore in the same quarter last year.
General News: Revenue from TV18’s general news operations declined year-on-year (YoY) to Rs 55.2 crore for the quarter, down from Rs 62.1 crore in Q1-FY13. The segment saw an operating loss of Rs 1.4 crore for the quarter, down from Rs 2.2 crore profit in Q1-FY13. The company attributed the loss to a lackluster advertising environment. TV18 currently operates general news channels like CNN IBN, IBN7 and IBN Lokmat.
Business News: Revenues from TV18’s business news operations marginally increased to Rs 57.3 crore for the quarter, up from Rs 54.2 crore in the Q1-FY13. The segment saw declined profits of Rs 17.5 crore for the quarter, down from Rs 20.8 crore profit in Q1-FY13. TV18 currently operates business news channels like CNBC TV18 and CNBC Awaaz and claims that both the channels are the market leaders in its categories for both the quarter and the year.
Infotainment Operations: AETN-18 India, the joint venture between Network18 group and A&E Television Networks, saw declined revenue of Rs 6.5 crore for the quarter, down from Rs 10.7 crore in Q1-FY13. The losses however improved significantly to Rs 1.4 crore loss for the quarter, as compared to Rs 9 crore loss in Q1-FY13. AETN18 currently operates the infotainment channel History TV18. The company noted that the genre itself saw a decline in ad spends for the quarter.
Viacom18, the joint venture between Network18 and Viacom, reported an operating profit of Rs 15.2 crore for the quarter, a significant growth from Rs 2.4 crore profit in the same quarter last year. The total revenue was at Rs 408.3 crore for the quarter, up from Rs 340.8 crore for the quarter.
This includes broadcasting revenues of Rs 303.6 crore, motion pictures revenues of Rs 37.6 crore and 50% share of IndiaCast revenues which was at Rs 98.6 crore. The broadcasting segment posted a EBITDA profit of Rs 30.5 crore for the quarter and IndiaCast saw a EBITDA profit of Rs 1.5 crore while motion pictures segment saw EBITDA loss of Rs 16.8 crore.
ETV Operations: ETV News reported Rs 27.8 crore revenue and EBITDA profit of 8.9 crore for the quarter while ETV Entertainment reported Rs 57.5 crore revenue and EBITDA loss of Rs 42.5 crore for the quarter.
IndiaCast Revenues: TV18 mentioned that IndiaCast, its joint venture with Viacom18 which currently manages the TV18′s and Viacom18′s distribution operations, reported revenues of Rs 147.9 crore and an operating profit of Rs 2.3 crore for the quarter.
However, note that this revenue accounts for only 75% of IndiaCast revenues. While IndiaCast is a 50-50 joint venture between TV18 and Viacom18, the net consolidation at TV18 is 75% since Viacom18 is also a 50-50 joint venture between TV18 and Viacom. Prior to this quarter, TV18 had considered IndiaCast as a 100% subsidiary of the company, which was expected to change once the 50% capitalization by Viacom18 is complete.
During the quarter, IndiaCast had inked two worldwide distribution deals – one with Reliance Entertainment owned video streaming service BigFlix.com to offer streaming rights for around 50 to 55 Hindi movie titles from Viacom 18 Motion Pictures and another with online video streaming service Spuul.com to provide worldwide streaming rights for over 60 current and upcoming Hindi and regional movie titles from Viacom 18 Motion Pictures, Colors and Eenadu Television.
– Advertising revenues were at Rs 227.5 crore for the quarter, up from Rs 215.6 crore in Q1-FY13.
– Subscription revenues were at Rs 35.4 crore for the quarter, up from Rs 32.8 crore in Q4-FY13.
– Net Distribution Income grew 32% sequentially to Rs 34.9 crore. Net Distribution income is the subscription revenues earned by the company after deducting the carriage fees and any promotions or commission paid during the quarter. TV18′s broadcasting operations started reporting net distribution income from Q2 2013.
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