TV18 Broadcast posts Rs 65 crore loss in Q2, revenue rises 22% to Rs 1,795 crore

New Delhi: TV18 Broadcast Ltd on Wednesday reported a consolidated loss of Rs 65 crore in the second quarter ending September on account of investments in sports and digital platforms, the next vertical of growth.

The company had posted a net profit of Rs 10.28 crore in the July-September period of the preceding fiscal, TV18 Broadcast said in a regulatory filing.

However, its consolidated revenue from operations was up 21.76 per cent to Rs 1,794.17 crore compared to Rs 1,473.43 crore in the corresponding quarter a year ago.

Growth in the consolidated revenue for the quarter was "driven by the performance of news business, movie studio and sports vertical," said TV18 Broadcast in an earnings statement.

However, it also said during the quarter advertising demand remained "guarded due to soft consumer sentiment" and added that the festive season in Q3 is expected to bring positive momentum.

In the July-September quarter, its EBITDA (earnings before interest, taxes, depreciation, and amortization) declined as the business made investments in growth verticals -- sports and digital.

"Both these verticals require investments in the near term to build a strong consumer proposition which will help the Company rise to the leadership position in the cluttered media landscape. We are building a strong catalogue of entertainment content which will leverage the exponential increase in audience traffic that sports enables," it said.

TV18 Broadcast's total expenses were up 39.71 per cent to Rs 2,076.15 crore in the September quarter.

Its total income stood at Rs 1,989.02 crore, up 34.08 per cent year-on-year.

During the quarter, Viacom 18 bagged both TV and digital rights of international and domestic matches organised by BCCI for five years and became the new home of India cricket with exclusive rights.

TV18 Chairperson Adil Zainulbhai said: "We continue to take giant steps towards building the network of choice for Indian consumers. With India cricket rights, Viacom18 now has the biggest portfolio of sports properties, making it the default choice for sports fans."

Its news network has fortified its positions across the markets, which bodes well as it heads into the festive season followed by elections.

"Our focus continues to be on providing quality content to audience and as India's only network with presence across news, entertainment, and sports, we are in a unique position to serve customers across the country and demographic cohorts," said Zainulbhai.

TV18 Broadcast, a subsidiary of Network 18 Group, owns and operates news and current affairs channels, which include CNN News18 and a host of general entertainment channels like MTV, VH1, Nickelodeon and Colors.

Shares of TV18 Broadcast Ltd on Wednesday settled at Rs 40.61 on BSE, down 4.98 per cent from the previous close.