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HomeShop18 posts Rs 174.91 Cr loss for FY15; Revenues at Rs 443.87 Cr, up 20.5% yoy

homeshop18-revenues

HomeShop18 (TV18 Home Shopping Network) has posted a loss of Rs 174.91 crore for the financial year ended March 2015, up significantly from Rs 83.9 crore from the previous financial year. Revenues, however, increased 20.55% year-on-year (yoy) to Rs 443.87 crore from 368.2 crore.

Note that this was a financial year when HomeShop18 filed and withdrew its IPO: In November last year, Homeshop18 withdrew its $75 million IPO application to list on the New York Stock Exchange, a few months after Network18 was acquired by Reliance Industries Limited. HomeShop18 had filed its IPO papers in April 2014.

Some data:

– Cumulative customer base of over 14.9 million, up from 9 million the previous year.
– 2.5 million app downloads combined across Android, iOS and Windows platforms.
– 30,000 transactions daily, of which 57% are from repeat customers. Network18 however hasn’t provided any split between HomeShop18′s TV and online business.
– its call centre receives about 100,000 calls daily.

Homeshop18

Scaling down operations & Reliance Retail’s plans

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In the annual report, Network18 says that: “Homeshop18 has strategically scaled down its digital home shopping business to leverage the potential in the TV home shopping segment, which it dominates with its innovative initiatives.”

In January, MediaNama had reported that Homeshop18’s Bangalore ecommerce division was shuttered in November, and employees were given the option to join Reliance Retail. Around 100-125 employees had then shifted to Reliance Retail. At its peak, the company had around 300 people in the Bangalore office, though half them were consultants and largely in customer support roles.

We haven’t seen anything significant on the online commerce front from Reliance Industries yet, though, in June 2015, Mukesh Ambani, chairman of RIL, said Reliance Retail has several e-commerce initiatives planned for the current fiscal year. “Before the end of year, the Fashion and Lifestyle formats of Reliance Retail will roll out its e-commerce initiative,” he said in his address in the annual general meeting. Ambani also mentioned that they’ll be launching another e-commerce initiative to build “on the successful experience of our physical B2B business.” Reliance Market, RIL’s B2B wholesale cash-and-carry business claims to have over 15 lakh small businesses and kirana stores as registered members.

It’s worth noting that TV18 Home Shopping Network is a 100% subsidiary of Network18’s Cyprus-based subsidiary Network18 HSN Plc (previously TV18 HSN Holdings limited) in which Network18 holds 53.71% stake as of March 31, 2014. The remaining stake is held by SAIF II Mauritius Company Limited, G S Home Shopping Inc, Makira SP5 limited and Orchard Centar Master limited.

Old data: Notes from HomeShop18’s IPO filing

 

More data here

– Revenues: $0.35M in FY11, $3.963M in FY12, $8.361M in FY13 and $4.08M for the 6 months ended September 30th 2013.
– Gross transaction value: $1.81M in FY11, $30.80M in FY12, $55.55M in FY13, $23.16M in H1-FY14.
– Average gross commission: 19.4% in FY11, 12.8% in FY12, 15.0% in FY13, 17.2% in H1-FY14.
– Average order value: $44.1 (Rs 2011) in FY11, $27 (Rs 1299) in FY12, $19.4 (Rs 1064) in FY13, $25.0 (Rs 1501) in H1-FY14.
– Contribution to total operational revenue: 1.8% in FY11, 16.2% in FY12, 20.5% in FY13 and 15.9% in H1-FY14.
– Contribution to gross transaction value: 2.9% in FY11, 28.4% in FY12, 33.4% in FY13 and 24.5% in H1-FY14.

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Cash on Delivery

– Contribution of Cash On Delivery transaction to total transactions: 88.5% in FY11, 85.8% in FY12, 80.6% in FY13, and 85.4% in H1 2014.
– “The courier companies may also, in some instances, impose collection charges on us for COD transactions, which is usually the higher of 1.5% of the value of the shipment and a minimum payment that has recently averaged Rs. 32 (approximately $0.5)”

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