Viacom18 rev up 7.7% to Rs 3036.4 cr in FY17, profit impacted due to new launches
MUMBAI: Viacom18, the equal joint venture company between TV18 and media conglomerate Viacom, has seen its consolidated revenue grow 7.71% to Rs 3036.4 crore in FY17 compared to Rs 2818.8 crore a year ago.
Viacom18 earned Rs 2850 crore from ad sales, distribution and programme syndication in FY17, which marked a 10.23% jump from Rs 2585.4 crore a year ago.
Film distribution and syndication revenues were down 22.16% to Rs 170.7 crore compared to Rs 219.3 crore in the earlier year. Other sales and service income fell 39.42% to Rs 14.5 crore from Rs 10.4 crore.
Viacom18’s consolidated net profit was impacted due to gestation losses from launches of OTT platform Voot, Hindi movie channel Rishtey Cineplex and second Kannada GEC Colors Super. The period also saw the launch of Hindi music channel MTV Beats, in addition to HD variants of its regional GECs. Profit fell to Rs 30.62 crore in FY17 from Rs 141.54 crore.
Expenses jumped 10.69% to Rs 2326.5 crore from Rs 2101.7 crore.
Programming costs jumped 12.46% to Rs 1718.3 crore compared to Rs 1527.9 crore a year ago. Marketing advertisement costs fell 6.82% to Rs 278.7 crore from Rs 299.1 crore. Transmission and uplinking costs jumped 45.3% to Rs 105.2 crore from Rs 72.4 crore. Other distribution costs rose 9.56% to Rs 198.1 crore from Rs 180.8 crore. Salaries, allowances and bonus shot up 17.24% to Rs 323.6 crore from Rs 276 crore.
The fiscal period also saw Viacom18 issuing fresh shares to its promoter companies. Both TV18 and MTV Asia received 90,96,333 shares each, taking the total allotted shares to 477,68,791 for each company.
Viacom transferred its 90,96,333 shares translating to 8% equity to another subsidiary company, Nickelodeon Asia Holdings Singapore. Thus, Viacom’s 50% stake is held under two companies, MTV Asia Ventures India (42%) and Nickelodeon Asia Holdings Singapore (8%).
Viacom18 owns and operates 36+ channels across 80 countries that reach out to 507 million viewers across age groups. The company operates in GEC (English, Hindi and regional), movie, youth, kids and music genres. Colors, Nick and MTV are the major revenue earning channels in the network.
Besides TV broadcasting, the company is also into film production and distribution, and live events. Licensing and merchandising is another important business for the company.