After reporting net losses at the consolidated level for five successive quarters, Network18 Media and Investments, and TV18 Broadcast returned to profitability in the third quarter of the current fiscal.
While TV18 reported a consolidated net profit (profit after tax) of Rs 21.3 crore, driven by strong growth in broadcasting and distribution revenues, Network 18's consolidated profit stood at Rs 6.8 crore.
Consolidated revenue for the quarter stood at Rs 697.4 crore, a 52 percent jump year-on-year while revenue for the television and motion pictures business (including IndiaCast) stood at Rs 512.4 crore, up 72 percent year-on-year and a gain of 59 percent quarter-on-quarter.
"Our net distribution income (subscription revenues minus carriage fee) has finally broken into positive territory and our recast balance-sheet has helped us rationalise our interest payouts," said Raghav Bahl, Managing Director, Network18, in a press statement, adding, "we are now entering an exciting phase in our journey as we strengthen our existing operations and consolidate our regional acquisition."
The company recently raised Rs 2,700 crore through a rights issue to fund its acquisition of the Eenadu group-promoted ETV.
The company's net distribution income turned positive while advertising revenues grew 10 percent year-on-year to Rs 312 crore.
The digital content and eCommerce business grew to Rs 119.6 crore for the quarter, doubling over the same quarter last year.
"Our broadcast operations grew their margins despite softness in the advertising environment," said Group CEO B Saikumar said in the press statement.
Disclosure: Firstpost is owned by Network18
Read the full press release below: