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TV18’s Q1 revenue impacted by GST
MUMBAI: Impacted by the impending goods and services tax (GST) implementation, TV18 Broadcast’s fiscal first-quarter consolidated revenue grew just 4% over the year-ago period to Rs 628 crore (including proportionate share of JVs).
While there was a strong bounce back in the months of April and May, 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 said.
TV18 Broadcast’s consolidated net loss narrowed to Rs 14.28 crore in the quarter ended 30 June 2017 compared to Rs 15.72 crore a year ago. This marginal improvement was driven by business news performance and helped by steady ramp-up of the multiple new initiatives undertaken in the first quarter of FY17.
TV18 Broadcast’s entertainment revenues were aided by strong performance in niche genres. The company runs a clutch of entertainment channels like Colors under a 50:50 joint venture company, Viacom18. In the factual entertainment space, it has a JV with A+E Networks and operates through A+E Networks | TV18. History TV18 is launched under this JV.
Viacom18’s share of entertainment viewership (ex-sports) has risen to ~10% vs <9% last fiscal. Rishtey has risen to #1 amongst all free-to-air (FTA) general entertainment channels; and even climbed to #2 amongst all GECs (Pay+FTA). “Flagship channel Colors continues to drive revenues through a premium positioning targeted at urban markets,” the company said.
On a standalone level, TV18’s operating profit was boosted by revenue growth from business news channels. However, regional news channels witnessed softness in revenues and low profitability due to gestation losses. TV18 operates a clutch of news channels at the standalone level.
TV18’s share of news viewership has risen to >9% over the last year. “Viewership grew substantially, driven by resurgence in general news and increasing traction in regional news. During the quarter, News18 India broke into the top 4 Hindi news channels (top 3 in primetime), which is a sharp improvement over its #8 ranking last year,” the company said.
Said TV18 chairman Adil Zainulbhai, “The industry is navigating through a period of flux in both the advertising environment and the subscription business model; but underlying growth tailwinds are intact and bode well for committed players. We believe that TV18 is well-positioned to capitalise on its strengths in content curation and creation of scalable platforms for seamless delivery. Our commitment to creating value for all our stakeholders is reflected in our continued investments into incubating segmented offerings, and consistently building on our areas of leadership.”
TV18’s standalone revenue (business + general news) in the fiscal first quarter was 153 crore, up 16% from Rs 132 crore in the year-ago period.
Profit before tax for TV18’s standalone business was Rs 22 crore.
In segment revenue, media operations reported revenue of Rs 624 crore in the quarter ended 30 June versus Rs 582 crore a year ago.
Revenue from film production and distribution fell to Rs 4 crore from Rs 19 crore in Q1 of FY17.