Network18, a media conglomerate, has announced its quarterly results amidst a big business re-alignment plaguing the whole group . Network 18 has seen their revenues increase by 40% to Rs. 318 crores compared to Rs/227 crores in the year ago quarter. The company has turned black although with operating profit of just 1 crores but is better compared to a loss of 14 crores posted last year.
Network 18 (PDF) : Quarterly Financial Results
Digital Business Going Strong:
Web18, a digital media subsidiary (also owner of In, bookmyshow, yatra ) has resulted in growth of 26% in revenues of Rs.18 crores compared to Rs.14 crores in corresponding quarter last year. The operating loss came in at Rs. 3 crores against 4 crores.
In current quarter, Moneycontrol launched its Hindi version while expanding its financial services footprint – including intuit offering. In.com at the same time re-positioned itself as one stop online destination with greater focus on mobile & digital music coverage.
Bookmyshow is turning into a showstopper for whole web18, registering an impressive 200% growth in ticket sales within a year. Its recent tie-up with Vodafone for their m-shop can further accelerate its future growth.
Its surprising that network18′s other big media business segments are registering unbeatable growth (Overall 40% growth Vs just 26% digital growth) ; whereas the growth of its digital business seemed capped, despite having low base. May be their realignment in businesses across the group can help in turning the growth corner deriving greater focus on digital front.
Television Business – Doubly Strong:
Television business raked in revenues to the tune of Rs.237 crores a growth of 45% compared to last year. The operating profit came in at Rs.21 crores.
Business news channels (business in different subsidiary – TV18) garnered Rs. 64 crores in revenues while general news segment (some part of IBN18) earned Rs. 52 crores.
Network18 controls 60% market share in business news segment whereas it holds 28% market share in general news segment.
Business – Re-alignment:
Network 18′s complex business arrangements hinged between web of subsidiaries, is going to see simplification. According to the new scheme of re-alignment – all TV businesses will be housed under New- TV18 company, whereas subsidiaries pertaining to digital/publishing/home shopping business will rest with Network 18.
Current Structure:
After Business re-alignment:
