Gadgets360, the Paytm funded gadgets news business from NDTV, has turned profitable during Q3 FY17, posting a Profit After Tax (PAT) of Rs 73 lakh during the quarter. The portal now has 35 million monthly active users.
Gadgets 360 has also claimed a GMV of Rs 100 crore for the nine month period till April 2016; that’s an average of around Rs 33.34 crore a quarter for the period, which is an improvement from Rs 27 crore GMV reported in Q4 FY16. In the same quarter last year (Q3 FY16), Gadgets 360 said that it generated Rs 21.7 crore in product sales between a two-month period till January 2016. Gadgets360 also shipped 20,000 devices at the same period. NDTV stopped disclosing shipment number since Q4 FY16.
Why NDTV Gadets is sharing a GMV figure (by Nikhil Pahwa)
It’s unusual to see a media business talk about Gross Merchandise Value (GMV), typically an ecommerce term, but NDTV Gadgets 360 makes money by acquiring audience through content, and then monetizing through its marketplace, or affiliate marketing. Note that GMV refers to the value of goods sold through the website, and does not indicate revenues generated by Gadgets360: the net revenue was not disclosed by NDTV, and it’s likely to be a fraction of this. For example, we checked, and Amazon and Flipkart give up to 4% in commission on handset sales.
Just for the purpose of illustration, assuming the same rate of 4%, and revenue only from affiliate sales (although, given its scale, NDTV Gadgets 360 would probably be able to negotiate a better commission) would result in a net revenue at Rs 4 crores.
The website competes with other players like PhoneArena, The Mobile Indian, and 91Mobiles. More recently, the Indian Express launched its own ad-free gadget review site Techook last month. These portals monetize via native advertising, video ads, or banner ads. Gadgets360, on the other hand, monetizes via affiliate sales through tie-ups with distributors and vendors: readers have an option to shop for mobile phones listed on the site.
For the quarter ended December 2016, NDTV posted:
– Net loss of Rs 15.83 crore, which is up from Rs 7.4 crore in the same quarter last year.
– Overall income of Rs 90.5 crore in Q3FY17, down 15.8% from Rs 108.7 crore in the same quarter last year.
-Ecommerce segment posted revenues of Rs Rs 3.76 crore, up 17.5% from Rs 3.2 crore in the previous quarter.
– Television and other related media operations generated Rs 129.53 crore during Q3FY17, accounting for 97% of NDTV’s revenue.
Disclosures: Some of the content that NDTV Gagdets covers might have an overlap with MediaNama’s coverage. The Indian Express is currently and advertiser with MediaNama.