Network18 Media & Investments has posted a consolidated loss before tax of Rs.1152.8 crore for the quarter ended June 30, 2014 (Q1-FY15). This includes one-time exceptional adjustments of Rs.1045.3 crore. Network18 had posted profits of Rs.21.1 crore and Rs.4.8 crore in the corresponding quarter last year and in the previous quarter, respectively.
Exceptional items: The adjustments reflect the depreciation in value of certain investments and goodwill to the tune of Rs 142.82 crore and Rs 234.78 crore, respectively. It also includes certain tangible and intangible assets worth Rs 127.43 crore, which have become obsolete. Plus, non-recoverable and doubtful loans, advances and receivables worth Rs 519.41 crore have been written-off. Finally, Rs 20.94 crore has been paid towards severance pay and consultancy charges.
It’s worth noting that loss at the operational level in Q1-FY15 was Rs 25.1 crore, as against losses of Rs 55.2 crore in Q1-FY14. However, in Q4-FY14 the company had reported operating profits of Rs 12.3 crore.
Operating revenue for Q1-FY15 was Rs 708.4 crore, up 27% from Rs 556.6 crore reported in the corresponding quarter last year. It is down 4% from Rs 738.3 crore reported in Q4-FY14.
Network18 has stopped releasing financial information for its digital content and commerce business from Q1-FY15. Read more about it here. Commerce and digital content accounted for 83.9% and 16.1% for Network18’s digital content and commerce segment revenues, in Q4-FY14.
Alok Agarwal is Network18 COO: Alok Agrawal, who quit as Zee Media CEO to join Reliance Industries earlier this year, has been appointed the Group COO of Network18. It’s worth noting that Reliance Industries, through Independent Media Trust (IMT), acquired the controlling stake of Network18 in May this year.