Network18’s broadcasting subsidiary TV18 Broadcast has posted net losses of Rs 14 crore for the quarter ended June 30, 2017 (Q1-FY18), as compared to net profits of Rs 6 crore in the preceding quarter, representing a decline of 133%. On a year-on-year (YoY) basis, net losses declined 12.5% from Rs 16 crore net losses reported in the same quarter last year.

The company reported total operational revenues of Rs 219 crore for the quarter, down 21.5% from Rs 279 crore in the previous quarter, and up 3.8% from Rs 211 crore in the same quarter last year.

The company said in its statement that it was impacted by the impending implementation of the Goods and Services Tax (GST) during the quarter. It said that while April-May witnessed robust revenue growth, June was substantially impacted by postponement in advertising spends. “Nevertheless, we believe that this is a transitory impact and GST shall drive the informal economy towards the formal channel in the long-run, which will push up advertising spends,” the company added. Chairman of TV18, Adil Zainulbhai said that “the industry is navigating through a period of flux in both the advertising environment and the subscription business model.” Note that the companies has not mentioned advertising revenues in its filings.

TV18 posted consolidated revenues of Rs 628 crores, posting a 4% YoY growth in Q1FY18. TV18 JVs, largely Viacom18, showed 5% revenue growth despite a weak June.

Media operations vs Film production

Revenues from the media operations business declined by 8.1% to Rs 624 crore, from Rs 679 crore in the previous quarter. On a YoY basis, revenues from the media operations business increased 7.2% from Rs 582 crore.

On the other hand, revenues from TV18’s film production & distribution business saw a significant decline of 91.3% to Rs 4 crore in this quarter, from Rs 46 crore in the preceding quarter. The business segment revenues also saw a 79% decrease from Rs 19 crore in the same quarter last year.

News Business

The company said that the profitability of the company has improved mildly, driven by business news performance and helped by steady ramp-up of the multiple new initiatives undertaken in Q1FY18.

TV18’s standalone (national news) revenues grew by 16% YoY, due to boost in business news. However, regional news witnessed softness in revenues with 16% YoY dip and low profitability due to gestation losses.

It’s worth noting that TV18 had stopped disclosing financial information pertaining to its news business and entertainment business from Q2-FY15. There is also no information on how IndiaCast or its infotainment business (AETN-18 India) performed during the quarter.