Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Network18 Media & Investments Ltd announces Q2 FY2019-20 results

Posted On: 2019-10-15 14:01:56

Network18 Media & Investments Limited today announced its results for the quarter and half year ended 30th September 2019.

Highlights for the quarter

- Broadcast subscription tailwinds continue to benefit: Our subscription income grew by 43% YoY in Q2, continuing the 48% growth YoY witnessed in Q1. The implementation of the new tariff order (NTO) has created a transparent and non-discriminatory B2C regime. Flux around the NTO has largely settled, though the cable segment continues to face some billing and reporting issues. Our domestic yields have improved, led by the strength of our bouquet as demonstrated by consumer choice for our channels and packs. Improved distribution tie-ups give our channel portfolio unparalleled reach across TV & Digital.

- Green-shoots in late Q2 amidst general ad-weakness: The advertising environment continued to remain tepid during much of the past quarter. Weak macro-economic trends dragged down consumer spends and depressed broader corporate appetite for above-the-line marketing activity. However, certain categories of new-economy advertisers were bright spots, and tailwinds in regional and digital consumption continued to attract attention. Ad-spends began to rise led by the advent of the festive season late in the quarter, and big-ticket programmes and events planned around the same. We are hopeful that Government policies aimed at stimulating demand shall aid the recovery as we head into H2.

- News bouquet (20 channels) maintained its #1 position. TV18's Q2 viewership share in news increased further to 10.9%, up from 10.1% in Q1 consolidating its leadership.

- As election tailwinds witnessed in Q1 tapered off, Q2 operating revenue for News declined 2% YoY. Weakness in financial markets, lack of government ad-spending and limited international advertising compared with last year dragged growth.

- Tight rein on costs kept Opex near-flat YoY. The News business remains firmly above breakeven, as regional news bouquet continues to ramp-up and move towards profitability.

- Entertainment bouquet (Viacom18's 32 channels + AETN18's 4 infotainment channels) is #3 amongst national players: TV18's Q2 entertainment viewership share was 9.2%, vs 9.1% last quarter.

- GECs impacted portfolio revenue growth; Digital picking up steam: Macro-weakness and shift of channels from DD Freedish to Pay ecosystem continues to drag ad-revenues of GECs for the entre industry. Pushing of some high-end content vs last year for better monetization (i.e. planned delay in the launch of Big Boss, shifting of IIFA awards to Q3, etc) makes the base not fully comparable.

- Improved subscription income and cost controls raised EBITDA 7% YoY: Sharp pullback in broadcast costs through optimizations raised EBITDA margins to 11.4% vs 9.9% in Q2FY19. This is despite investments to the tune of Rs 13 Cr in regional movie channels (Kannada and Gujarati Cinema) and paid-offerings (VOOT Kids & International). Excluding these, BAU margins improved to 12.9%. BAU margins include the impact of initiatives launched more than a year ago but are still in gestation, including Voot and Colors Tamil.

- Digital-only subscription a nascent, high-growth area of impetus: We have witnessed robust uptake for the subscription product MoneyControl Pro launched in Q1. The product underscores the impact of a strong brand and superior features at a class-leading price-point. Voot, the primary OTT VOD platform for the group, shall soon be launching its freemium version with offerings like digital exclusive and digital-first broadcast content as well as original content behind a pay-wall. Kids edutainment product Voot Kids was soft-launched in Q1 with a niche and highly differentiated offering, and shall be progressing to commercial operations behind a pay-wall in this fiscal.
- Network18 digital is #2 in digital news / information category, has ~180 mn unique visitors

- Network18 digital revenues grew 10% YoY to Rs 46 Cr. Sharp display advertising growth in News18.com (especially vernacular) boosted revenues even amidst a tepid environment.

- Operating margin fell due to operating losses of recently launched app CricketNext (Rs 4 Cr) and investments into the subscription model of MoneyControl, MC Pro.

Mr. Adil Zainulbhai, Chairman of Network18, said: "Network18 successfully encapsulates News and Entertainment content, across National and Regional platforms, in both TV and Digital mediums. We are fully geared for a Digital world, with differentiated content available on integrated platforms on a pipe-agnostic basis. Impetus on seeding new business models and germinating fresh ideas are the hallmarks of our Digital business, which is backed by a TV content backbone that we continue to invest in."

Shares of NETWORK18 MEDIA & INVESTMENTS LTD. was last trading in BSE at Rs.20.05 as compared to the previous close of Rs. 19.65. The total number of shares traded during the day was 21808 in over 206 trades.

The stock hit an intraday high of Rs. 20.5 and intraday low of 20. The net turnover during the day was Rs. 441157.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

TCS iON Reimagines University Education with a Unique Phygital Learning Program

Philippines Business Bank selects Intellect Digital Core, IDC 19.1, to power its Digital Transformation

Infosys Receives Five Awards at the DevOps Industry Awards 2019

NMDC Ltd revises Prices of Iron Ore w.e.f. 14-11-2019

RBI imposes monetary penalty of Rs. 1.75 crore on Indian Bank

Kalpataru Power Transmission Ltd completes disinvestment of Kalpataru Satpura Transco Private Limited

Parag Milk Foods announces launch of Go Cheese Blend for out of home consumption market

Ugar Sugar Works commences sugar crushing for season 2019-20

SpiceJet and Gulf Air sign MoU to explore greater cooperation

Mr. Abhishek Gami acquires controlling stake in Rapicut Carbides Limited

Jagran Prakashan Ltd updates on CP rating

Havells introduces ST^Dx Switchgear in Tamil Nadu

TCS Collaborates with Qualcomm to Launch New Innovation Hub to Develop Next-Gen AI Solutions with 5G

IntrCity by RailYatri, ICICI Lombard & Marsh join hands to provide insurance cover worth 5 Lacs for IntrCity SmartBus Travelers

Maruti Suzuki invites startups to participate in third cohort of MAIL (Mobility & Automobile Innovation Lab) program

Blue Star launches new room air conditioners with in-built air purifiers that improve the quality of life

Subros Limited formally inaugurates its 9th state-of-the-art manufacturing plant

Open Offer for Accelya Solutions India Ltd at Rs. 944.19

Ullico Casualty Group Selects Majesco P&C Core Suite and Majesco Enterprise Data Warehouse on Majesco CloudInsurer® to Underpin Digital Transformation and Growth Strategy

Shree Cement Ltd board to approve QIP allotment, discount, issue price on Nov 22, 2019

Siemens Ltd reappoints Deepak Parekh and Yezdi H Malegam as independent directors

Reliance Capital's stake in Reliance General Insurance Company Ltd invoked by IDBI Trustee

Brickwork Ratings reaffirms commercial paper issue rating of JSW Energy Ltd

Jio keeps consumers at the center of digital revolution in India

CARE reaffirms long term rating of Loyal Textile Mills Ltd

University of Oulu, Wipro Sign MoU to Collaborate on 5G/6G Technologies

NBCC (India) Ltd bags project consultancy contract

Siemens Ltd Board recommends Dividend of Rs. 7 for 2018-19

Dilip Buildcon Ltd arm receives provisional completion certificate for project in NH-361

Siemens Limited announces Q4 FY 2019 results

CarDekho delivers 92% growth in H1 2019-20

Bajaj Finserv offers lucrative deals on Vivo smartphones

South Indian Bank Ltd revises MCLR from Nov 20, 2019

Tata Chemicals tops 6th edition of ET Edge - Futurescape Responsible Business Rankings 2019 unveiled at Economic Times - SDG Impact Summit

RBI imposes penalty of Rs. 2.50 crores on Bank of Baroda

Alkyl Amines Chemicals Limited has sold its stake in Diamines and Chemicals Ltd

Appirio, MuleSoft Partner to Provide Digital Transformation Solutions

TCS and Govt of Karnataka Rural IT Quiz: Government Excellence School, Dewas, Madhya Pradesh wins National Finals

Infosys Foundation India International Challenge 2019 to host 250 players from 13 countries

Chembond Chemicals Ltd to list in NSE on Nov 20, 2019

Hexaware Developers Win Big at Automation Anywhere's Virtual Bot Games

Lupin launches generic KCl for Oral Solution USP, 20 mEq

Virgin Atlantic Expands Technology Partnership with TCS to Further Enhance Customer Experience

Intellect SEEC powers KSKJ Life with the implementation of AI-powered, cloud-native Fraternal Suite

Birlasoft recognized with 'Companies with Great Managers™' Award

Bharti Airtel announces increase in price from December 2019

Thomas Cook India introduces India's First 'Easy Payment Plan' for Holidays

Maruti Suzuki S-PRESSO debuts as one of India's top 10 bestselling cars within a month of its launch

Dilip Buildcon Ltd declared L1 bidder by Northern Coalfields Ltd

V2 Retail Ltd opens new retail store at Angul Town







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019