News revenue grew marginally due to soft ad environment: Network18

Network18's news business revenue grew marginally in the third quarter of FY2025 as the advertising environment continued to be lukewarm, according to the company's financial statement released on Tuesday.

“Consumer demand did not witness a meaningful pickup during the festive period, resulting in brands holding back on advertising spends. 

“Advertising volumes for the TV News industry saw a marginal uptick on a QoQ basis but declined 11% YoY, putting pressure on revenue growth. Digital segment continued to see growth in advertising revenue, though on a lower base,” it said.

The company's total revenue/income declined by 25% from Rs 1,930 crore in Q3 FY24 to Rs 1,443 crore in Q3 FY25. 

The loss for the period widened to Rs 1,401 crore in Q3 FY25, up from Rs 102 crore in the same quarter previous fiscal due to the derecognition of its subsidiaries, which has been accounted for on a provisional basis during the quarter.

Operating expenses grew 4% YoY during the quarter, leading to a lower EBITDA. 

However, collectively, during nine months in FY25, EBITDA has seen a sharp improvement as revenue has grown by 7% vis a vis 4% growth in cost. 

Operating revenue for the quarter was Rs. 476 crore, 2% higher on a YoY basis; the advertising environment continued to be soft, exerting downward pressure on growth, it said. 

Viacom18’s merger with Star India completed on 14th November, created one of India’s largest broadcasting and digital streaming companies.

Network18 holds a 6.3% effective economic interest in the JV through its holding in Viacom18.

“The Scheme of Arrangement for the merger of business of Viacom18 with Star India Pvt. Ltd. (SIPL) became effective on 14th Nov, 2024, resulting in the creation of the Joint Venture (JV) housing one of India’s largest broadcasting and streaming businesses. Reliance Industries (RIL) invested Rs. 11,500 crores into the JV for its growth strategy. Viacom18 holds 46.82% stake in the JV with the balance being held by RIL (16.34%) and Disney (36.84%),” it said.

On 30th December, 2024, Viacom18 ceased to be a subsidiary of Network18, post-conversion of the Compulsory Convertible Preference Shares (CCPS) of Viacom18, held by RIL, into equity shares. 

The Company now holds 16.12% of the equity share capital of Viacom18 and 13.54% on a fully diluted basis.

Adil Zainulbhai, Chairman of Network18, said: “The restructuring of the business is now complete, simplifying the corporate structure for all our stakeholders. We are pleased with the progress made on the operating front, especially the manner in which our television network is growing. Having established leadership positions in national markets, we are now focused on select regional markets for driving the next phase of growth. Our Digital business is also gaining momentum, and we are harnessing the combined strength of our platforms to deliver a superlative and seamless experience to our consumers.”