Network18 delivers a strong Annual Operating Performance, FY14 PBT up at Rs. 16 crore

Listed below is the investor update for Q4 and FY14 for Network18 Media and Investments Limited. Network18 has delivered a strong Annual Operating Performance. Its FY14 PBT is up at Rs 16 crore vs a loss of Rs 136.9 crore last year.

The Reported operating profits (EBITDA) stand at Rs 87.2 crore vs a loss of Rs 39.3 crore last year.

Read below: EARNINGS RELEASE: FY 2014 and Q4 2013-14

Press release:

- Network18 delivers a Strong Annual Operating Performance

- FY14 PBT up at Rs. 16 crores vs. a loss of Rs. 136.9 crores last year

New Delhi, May 27, 2014 - Network18 Media & Investments Limited announced its results for the quarter ending March 31, 2014, today. Highlights of Reported Results:

Note: Reported results are inclusive of the financial consolidation of ETV News (100%) and ETV Entertainment (50%) from 22nd Jan 2014 till 31st March 2014. On 22nd Jan 2014, post receipt of required regulatory approvals, TV18 completed the acquisition of the ETV channels - 100% of ETV News, 50% of ETV Entertainment and 24.5% of ETV Telugu. In accordance with the accounting policies, ETV News and ETV Entertainment have been consolidated at 100% on a line by line basis (Refer Note No. 7 in the Notes section).

- Reported revenues on a consolidated basis for FY14 stood at Rs. 2,692.4 crores, up by 12% YOY.

- Operating profits (EBITDA) turned around from a loss of Rs. 39.3 crores in FY13 to a profit of Rs. 87.2 crores in FY14, led by a consistent increase in profits generated by the television operations and reduction in operating losses of the digital businesses.

- PBT for the year turned around from a loss of Rs. 136.9 crores last year to Rs. 16 crores this year led by a strong operating performance and a sharp reduction in interest cost from Rs. 272 crores last year to Rs. 122.5 crores this year.

- Reported operating revenue in Q4 FY14 was Rs. 738.3 crores, up 8.7% YOY. Reported operating profit (EBITDA) in Q4FY14 was Rs. 42.3 crores, up from Rs. 12.7 crores last year.

Television and Motion Pictures

- Reported annual revenues on a consolidated basis are up 15.8% to Rs. 1,968.1 crores and operating profits (EBITDA) have nearly doubled to Rs. 210.5 crores.

- On a consolidated basis, annual advertising revenues grew 11% year on year. Net Distribution Income (NDI) continued its steady climb to close at Rs. 178 crores, up from Rs. 15.7 crores in FY13.

- In this financial year, operating profits from our television operations doubled from Rs. 114.2 crores to Rs. 233.6 crores. General News delivered a 6.9x growth in annual operating profits and grew to Rs. 22 crores. Business News remained stable despite a downturn in the markets and the absence of the Union Budget. Infotainment broke into positive territory and our Entertainment television business registered a 2.9x growth in operating profits (EBITDA) which stood at Rs. 108.4 crores.

- In Q4, the company successfully launched MTV Indies and Rishtey in the entertainment segment and ETV Bangla, ETV Kannada and ETV Haryana in the regional news segment.

- Reported revenues for Q4 FY14 stood at Rs. 563.3 crores, up 18.7% and operating profits (EBITDA) in Q4 FY14 stood at Rs. 69.7 crores, up 101% YOY.

Network18 Q4 FY14 Investor Update - May 27, 2014

Digital content and eCommerce

- FY14 revenues from the digital content and eCommerce business grew by 32% from Rs. 400.9 crores last year to Rs. 530.8 crores this year. Operating losses (EBITDA) of our digital business were steadily reduced in this financial year from Rs. 125.4 crores to Rs. 80.6 crores.

- In Q4 FY14, the company successfully launched 'FirstBiz', a business news portal under the 'FirstPost' stable and 'News18.com', a web, mobile and tablet service which focuses on local news at the state and city level.

- Q4 FY14 revenues from the digital businesses stood at Rs. 149.4 crores and grew by 35% over the last year.

Announcing the results, Raghav Bahl, Managing Director, Network18 said, "We are enthused by the turnaround performance of Network18 for this financial year. All our businesses have delivered strong operating performances and contributed positively to achieve a new milestone in operating profits this year, despite the continued uncertainty in the macro-economic environment. We are confident of sustaining our growth trajectory, as we continue to extract value from our existing operations as well as profitably grow our newer initiatives."

Commenting on the results for the quarter, B. Saikumar, Group CEO, Network18 said, "All our broadcast operations continued to show improvement in margins. IndiaCast has delivered a stellar swing in net distribution income. Our General news operations have turned around this year, due to a strong focus on operational efficiency. Infotainment operations at A+E Networks I TV18 broke into positive territory. Our broadcast entertainment business at Viacom18 grew profitably. Our digital businesses displayed encouraging revenue growth, successfully launched FirstBiz and News18.com and narrowed operating losses. We are focused on sustaining our strong performance in the coming year".

(Disclaimer: Network18 Media & Investments owns IBNLive.com)