Results not comparable with the year-ago period due to merger of subsidiary Viacom18 with Star India, says company
New Delhi: Network18 Media & Investments Ltd has reported a loss of Rs 1,400 crore in the December quarter while its revenue from operations was Rs 1,360.50 crore, which is not comparable with the year-ago period due to the merger of its subsidiary Viacom18 with Star India.
It reported a Rs 25.68 crore profit before exceptional items. However, on a consolidated basis, it faced a loss of Rs 1,425.73 crore, due to the derecognition of its subsidiaries, which has been accounted on a provisional basis during the quarter.
“Accordingly, the figures for the corresponding previous periods are not comparable,” it said.
On a standalone basis, Network18 Media & Investment’s revenue from operations was at Rs 476.41 crore during the quarter and its profit was at Rs 3,431.94 crore, helped by exceptional gains.
It had exceptional gains of Rs 3,498.21 crore in the December quarter as it accounted for the business combinations relating to the merger scheme of Viacom 18 Media, Digital18 Media, and Star India and conversion of 24.61 crore compulsorily convertible preference shares held by Reliance Industries in Viacom 18 during the quarter, resulting in to Viacom 18 ceasing to be a subsidiary of Network18 Media & Investments.
Its “operating revenue for the quarter was Rs 476 crore, marginally higher on a year-on-year basis advertising environment continued to be soft, exerting downward pressure on growth,” said Network18 Media & Investments in its earning statement.
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 per cent YoY, putting pressure on revenue growth. The digital segment continued to see growth in advertising revenue, though on a lower base,” it said.
Viacom18’s merger with Star India was completed on November 14, creating one of the country’s largest broadcasting and digital streaming companies.
Network18 Media & Investments owns 20 news channels across 16 languages, including CNBC TV18, CNN-News18 and four online platforms, such as moneycontrol and Firstpost. PTI
