Q3 Result Updates: Network18 & Web18′s Topline Sees 33% & 13% Jump Respectively

Network 18 has announced a 33 per cent (Q-o-Q) increase in its consolidated revenues at Rs.3.7 billion (Rs.370 Crores) compared to Rs. 2.78 billion reported in sequential quarter.

q3-results

The company despite a magnificent jump in Top line continues to bleed on net basis but turned EBITDA profitable.The operating profit came in at Rs. 81.1 Million compared to a loss of Rs.463.55 Million in a quarter ago period.

Network 18 holds a range of businesses with its listed subsidiaries like TV18, IBN18 & Infomedia 18. The major performance boost has come from the Web18, online subsidiary and news & channel operations via TV18 , IBN18 (Viacom 18).

Web18:

The revenues of Web18 was higher by 23 per cent at Rs. 196.93 Mn. against Rs. 160.08 Mn. The operating losses recovered significantly from Rs. 51.37 Mn. to Rs. 28 Mn. The company expects to turn EBITA positive in coming few quarters.

Web18 owns range of  Portals:

Content - In.com, Moneycontrol.com , IBNLive.com,Cricketnext.com, Tech2.com , Compareindia.com
Transaction – Yatra.com, Bookmyshow.com , 51818 Mobile
Subscription – Jobstreet.com , Poweryourtrade.com , Commoditiescontrol.com , Indiaearning.com

In.com now enjoys No.2 position amongst Indian horizontal  portals mostly due to the integration of various services under In.com domain. The portal also unveiled a new interface in December 2009 to raise stickiness on the site, we earlier pointed out the lack of stickiness on the site.

In.com has also announced that it will be launching messenger service in few months. Moneycontrol at the same time wants to carve superior position in personal financial management through its recent tie-up with Intuit. Web18 has also re-iterated its focus on mobile space so we are expecting some important announcement pertaining to this segment in near future.

Other Subsidiary Companies:

TV18:

The news operations revenues were up 5% at Rs. 674 Mn. compared to Rs.647 Mn. The EBITDA profitability of network18 was mainly achieved due to increase in operating margins of its news channel subsidiary which saw its operating profit doubling to Rs.200 Mn. and also witnessed a huge jump in its operating margin at 30 per cent.

The company forecasts to maintain its road to profitability on back of improved margins and leadership position in business news segment at 62 per cent market share.

VIACOM18 & IBN 18: The company has also done well with other channels as well as 7 out of 9 channels are at no.1 position in their respective categories specially the channel ‘Colors’ which has shot past its arch rival Star and Zee in GEC  space.

Infomedia18:

Infomedia18 has reported a decline in revenues at Rs. 334.35 compared to Rs. 353.72 in sequential quarter. The company did see a decline in operating losses by 18% at Rs. 50 Mn. Infomedia18 owns various print media publications like Yellow pages, Overdrive & Chip.

Infomedia18 also expects a significant recovery in revenues in coming quarters due to an increase witnessed in subscription and advertising revenues.

NewsWire18:

Newswire18 revenues were higher slightly at Rs. 83.77 Mn. compared to  Rs. 78.88 mn. This business is at very nascent stage and thus could take a lot of time to build up volume and profitability.

The current quarterly results of Network 18 showcase the benefits of cost cutting exercise done by the management in a year  period. The increasing operating margins do paint a bright future for its Media & Entertainment allied businesses. The next few quarterly results will be very crucial as many of its businesses are projected to turn EBITA profitable.

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