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Tag: TV18

  • Entertainment drives Network18, TV18 numbers up

    Entertainment drives Network18, TV18 numbers up

    BENGALURU: Mukesh Ambani’s Network18 Media & Investments Limited (Network18) reported 4.7 per cent growth in consolidated operating revenue for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous fiscal (FY 2019). Consolidated operating revenue for the quarter ended 31 March 2020 (Q4 2020, quarter under review) grew 19 per cent as compared to the corresponding year ago quarter (Y-o-Y).  Consolidated operating EBIDTA for the year and the quarter grew 191.2 per cent and almost twentyfold (up 1,888.1 per cent) as compared to the corresponding periods of the last year. The company reported profit after tax for FY 2020 and Q4 2020 as compared to losses reported in the previous year and the corresponding year-ago quarter. 

    Network18’s reported consolidated operating revenue in FY 2020 and FY 2019 was Rs 5,375.15 crore and Rs 5,116.18 crore, respectively. For Q4 2020 and Q4 2019 it was Rs 1,464.51 crore and Rs 1,230.93 crore. Consolidated operating EBIDTA for FY 2020, FY 2019, Q4 2020 and Q4 2019 was Rs 616.92 crore, Rs 211.88 crore, Rs 225.11 crore and 11.34 crore, respectively. 

    Network18 reports revenue from two streams – (1) TV18 Broadcast Limited or TV18 which comprises News (TV18 standalone) and Entertainment (Viacom18+AETN+Indiacast) and digital, print and others. It must be noted that Viacom18 and AETN18 are 51 percent Entertainment subsidiaries of TV18, while distribution-arm Indiacast is a 50:50 JV of TV18 and Viacom18. TV18's 24.5 percent minority stake in Telugu entertainment associate Eenadu TV (Ramoji Rao group) is not included in the TV18’s numbers.

    Network18 reported profit after tax (PAT) of Rs 56.14 crore for FY 2020 as compared to a loss of Rs 177.60 crore in the previous year. For Q4 2020, PAT was Rs 60.19 crore as compared to a loss of Rs 75.57 crore in Q4 2019. 

    TV18 Broadcast Limited numbers 

    TV18 Broadcast Limited (TV18) consolidated revenue grew five percent in FY 2020 to Rs 5,175 crore from Rs 4,943 crore. TV18 consolidated revenue for Q4 2020 grew 21 per cent to Rs 1,425 crore from Rs 1,182 crore in Q4 2019. 

    TV18 consolidated EBIDTA grew 124 per cent in FY 2020 to Rs 703 crore from Rs 314 crore in FY 2019. Consolidated EBIDTA for Q4 2020 grew 365 percent to Rs 240 crore from Rs 52 crore in Q4 2019. 

    Though News (TV18 standalone) reported seven per cent growth in FY 2020 as compared to FY 2019, it contributes about 22 per cent to the revenues of TV18 consolidated revenues. The larger revenue stream for TV18 is entertainment, which had revenue growth of four per cent during the same period. TV18 standalone or news revenue grew seven per cent in FY 2020 to Rs 1,150 crore from Rs 1,079 crore in FY 2019. 

    Entertainment revenue grew four percent as mentioned above to Rs 4,025 crore from Rs 3,863 crore. Entertainment revenue also includes subscription revenue – the company reported 43 per cent growth in subscription revenue for FY 2020 to Rs 1,811 crore from Rs 1,269 crore in FY 2019. This implies that without subscription, revenue from other streams of entertainment declined in FY 2020 as compared to FY 2019. 

    News (TV18 standalone) operating EBIDTA grew five per cent in the year under review to Rs 97 crore from Rs 93 crore in FY 2019. Entertainment operating EBIDTA grew 174 per cent in FY 2020 to Rs 606 crore as compared to the Rs 221 crore in the previous year. 

    News (TV18 standalone) revenue for Q4 2020 grew 4 per cent to Rs 301 crore from Rs 288 crore in Q4 2019. Entertainment revenue for the same period grew 26 per cent to Rs 1,124 crore from Rs 893 crore. Subscription revenue for Q4 2020 grew 41 percent to Rs 468 crore from Rs 332 crore. 

    Operating EBIDTA for News (TV18 standalone) grew 11 percent in Q4 2020 to Rs 35 crore from Rs 31 crore in Q4 2019. Operating EBIDTA for Entertainment grew 901 percent during the quarter under review to Rs 206 crore as compared to Rs 21 crore in Q4 2019. 

    Print, digital and others and intercompany eliminations (others) numbers 

    Print, digital and others and intercompany eliminations (others) operating revenue in FY 2020 increased five per cent to Rs 182 crore from Rs 173 crore in FY 2019. Others operating EBIDTA in FY 2020 was a lower operating loss of Rs 86 crore as compared to an operating loss of Rs 102 crore in FY 2019. 

    Others operating revenue for Q4 2020 reduced 20 per cent to Rs 40 crore from Rs 49 crore in Q4 2019. Operating EBIDTA for Q4 2020 was a lower operating loss at Rs 15 crore as compared to an operating loss in Q4 2019. 

    Company speak: 

    Network18 chairman Adil Zainulbhai said: “The COVID-19 pandemic is a major blackswan event, which has dragged the economy and the advertising environment as a result. The

    immediate impact on the ad-driven media industry will be significant; however an increasing proportion of subscription revenues will help us pull through. Amid uncertain times, the strength of our brands and our class-leading content creation capabilities continues to shine through. We are proud of the coverage being provided by the News18 Network despite trying circumstances. The growth in media consumption witnessed augurs well for the future, as some of the increased engagement will be sticky even once the pandemic tapers off. We have stayed the course on our digital impetus and sharp focus on profitability.”

  • Ambani’s Reliance merges media & distribution biz under Network18

    Ambani’s Reliance merges media & distribution biz under Network18

    MUMBAI: When you are Mukesh Ambani, you think size,  you think scale. Even as speculation is running rife whether a deal with Sony Pictures is on, the chairman & managing director of Reliance Industries yesterday announced that the megacorp is consolidating its media and distribution entities under one company Network18 Media & Investments. Under the scheme of arrangement, TV18 Broadcast , Hathway Cable and  Datacom and Den Networks  will merge into Network18 Media.

     

     The appointed date for the merger shall be 1 February, the company said in a statement. It also added that the broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18.

     

    In one of the the biggest takeovers of the Indian media industry, Ambani had announced in 2014 that it would spend big to take complete control of Network18. The acquisition kickstarted the billionaire Mukesh Ambani’s investment in the media and entertainment industry which ballooned over the years .

     

    After the consolidation, Network18 will be an integrated media and distribution company with a revenue of Rs 8,000 crore and net-debt free at a consolidated level. The company also said that the scheme shall also simplify the corporate structure of the group by reducing the number of listed entities.

     

    According to the share exchange ratio approved by the board, shareholders will get 92 shares of Network18 for every 100 shares of TV18; 78 shares of Network18 for every 100 shares of Hathway and 191 shares of Network18 for every 100 shares of Den. Reliance Industries’ holding in Network18 will reduce from 75 per cent to 64 per cent upon the scheme’s implementation.

     

    “The aggregation of a content powerhouse across news and entertainment (both linear and digital) and the country’s largest cable distribution network under the same umbrella shall boost efficiency and exploit synergies, creating value for all stakeholders,” the company stated.

     

    “The media industry is accelerating towards being a B2C play, led both by market factors and through regulation. An integrated media play shall further increase the breadth as well as depth of the group’s consumer touchpoints, and allow for retaining a larger share of the consumer’s spend on content,” it added.

     

    Back in 2018, Reliance Industries through its network of subsidiaries acquired major stakes in Den Networks and  Hathway Cable and Datacom Limited after few days of announcement of its fiber-to-the-home service.

    The company added that the consolidation of the cable businesses of Den and Hathway in one entity will leverage the combined strength of the 27,000 LCO partners who act as the touchpoints to 15 million households in India; delivering localised, people-friendly and ultra-fast customer services. The combined broadband entity will serve 1 million wired line broadband subscribers across the country.

     

  • TV18 net profit up by 40% in Q3 FY 20

    TV18 net profit up by 40% in Q3 FY 20

    MUMBAI: TV18 Broadcast has reported a 40 percent year-on-year (YoY) growth in its consolidated net profit at Rs 205.16 crore for Q3 FY19 from Rs 146.96 crore in the previous year.

    Its consolidated operating revenue stood at Rs 1,425 crore in Q3 FY20 against Rs 1,275 in Q3 FY19. TV18 chairman Adil Zainulbhai said, “Our emphasis on delivering value to the consumer, expanding the partner ecosystem and raising profitability were the primary milestones during the past quarter.”

    He further said, “Amidst a difficult ad-environment and continued regulatory flux, the rise in rankings for flagship channels is a positive indicator for the future. We are constantly adjusting our programming and business model for the continual technology, consumer and regulatory changes in the business.”

    The company continues to benefit from linear TV subscription benefits by witnessing 40 per cent YoY revenue growth in Q3. “Implementation of the NTO (New Tariff Order) has created a transparent and non-discriminatory B2C regime, which continues to boost our TV subscription revenue. Improved distribution tie-ups across cable and telcos have brought the consumer closer to our class-leading content bouquet at an affordable optimum price,” it said in its financial release.

    In line with its strategy of being platform agnostic, the group stitched multiple partnerships with notable digital platforms for serving their users a discerning selection of our content.

    “The prevalent weakness in macro-environment and sluggish spending appetite by advertisers continued to drag ad-revenue down YoY for both news and entertainment. Shift of channels from DD Freedish to pay ecosystem continues to impact Hindi GEC ad-revenues for all the top broadcasters. Government initiatives to boost growth and a natural refresh-and-recalibration of ad-budgets should revive ad-growth as we head towards the new fiscal,” the company said.

    It further informed, “Kids edutainment product Voot Kids progressed to a commercial launch with promotional plans. Voot’s freemium version with offerings like digital-exclusive and digital-first broadcast content as well as original content behind a pay-wall is slated to be launched soon.”

    TV18’s Q3 average viewership share in news was 10.2 per cent, down from 10.9 per cent in Q2.

  • A+E Networks | TV18’s Avinash Kaul on branded content, investment & growth of infotainment genre

    A+E Networks | TV18’s Avinash Kaul on branded content, investment & growth of infotainment genre

    MUMBAI: Producing original shows on issues of contemporary local significance like surgical strikes, national elections, Ganesha festivals, marvels and mysteries of India; that’s how History TV 18 aims to stand out in the niche segment of infotainment channels in India.

    “Very consciously we are going towards the direction of original local content because that is what will make our brand stand out in India,” says A+E Networks | TV18 MD and Network18 CEO Avinash Kaul in an interaction with Indiantelevision.com. He also spoke on the need for creating original content in infotainment space, challenges faced by the genre, impact of NTO on niche genres, economic slowdown, channel’s growth trajectory and plans for 2020.

    Kaul believes that factual and lifestyle channels offer the best branded content options. “Factual entertainment is something which enables all kinds of genres to flow, and all kinds of brand stories to be told. So that's the proposition that we are trying to go with. It is a very robust platform because of its availability in multiple languages. The channel cannot compete with the ratings of GECs but it enables a brand environment where brand story can be beautifully curated. As a branded content it's the perfect way forward because the ratings are far higher than news but are much lower than GECs but the mass reach is still there.”

    Speaking on some of branded shows done by the channels, Kaul says, “Our programming and marketing team has over 250 years of experience and have pioneered some of the biggest, tailor-made sponsored initiatives that have set benchmarks across industries. This, combined with our digital presence, might have resulted in several clutter-breaking advertiser-funded projects.”

    To mention a few – Hamdard’s One for All a digital-first initiative- stories of people who have contributed towards the betterment of society; Renault presents Ride to Conquer is about four influencers from different walks of life who go on a drive for self-exploration; and Imagine your Korea- an initiative to get more Indians familiar with S Korea as a travel destination.

    He further says, “From a ratings standpoint, obviously we are doing very well. FYI TV18 is the number one lifestyle channel in India by a huge margin. It's roughly around 60-65 per cent of the market. It beats even channels like FoodFood and Living Food, TLC Fox Life, Good Times, all of them. So it's fairly strong in the ratings ecosystem. As far as History TV18 is concerned it usually comes in number two after Discovery in the factual entertainment genre, which given the fact that Discovery is in the country for more than 30 years, and beating the likes of NGC and others by itself is remarkable.”

    History TV18 has also released unseen differentiated programming in the Indian market. Kaul says that shows like Pawn Stars, Baggage Battle and Storage Wars from international houses resonated well, despite a lot of people having thoughts that it may or may not work as well in India.

    The channel also has a show called Forged In Fire which is about people making knives and people making swords, which is a reality show. “Now, that's not something that one would see on a normal channel or any other factual entertainment channel and that's one of the top-rated shows,” he opines.

    OMG! Yeh Mera India has two main sponsors Hyundai and Havells. “Even though History TV18 channel was a late entrant in the factual and entertainment genre, we were the early adopters of local content in India. We have OMG! Yeh Mera India Season 6. In three and a half years we have done six seasons. So which means in a year we do more than one season. So that gives you a sense of the amount of response that we get from this show, not only on TV, which is obviously top-rated but also on digital,” informed Kaul.

    Due to the current business environment due to NTO, Kaul feels there is certain softness in the market. Because of this, the channel has kept some originals on hold for FYI TV18.

    The biggest challenge faced by the genre is investment in original content. In India, the market share of infotainment is very low whereas, in the West, the genre holds the second position after sports. Kaul attributes this to investment in original content. Indian TV channels did not pick up the trend and the late entrants had to begin it, putting more pressure on them. He further says, “If it had been done at the right time, I think the genre would have leapfrogged to a totally different place.”

    With regards to content, Kaul said, “The only thing that is well exploited in India is Mythology but not History. So if history could be done, that could really change the entire complexion. Because even if you see the OTT platforms, by the time they come to factual entertainment, it is another three four years as they are first creating mass production, like Sacred Games and other things which are basically something which will smack and people will get used to it. After building those libraries they will invest in these other shows. So I think that journey will take time. Until that time, we are only custodians of making shows like that. We can do it only one show at a time or two shows at a time.”

    Revealing the plans for 2020 Kaul says, “The plan is to stay on course. I think this is the time to not get derailed from our plans but to continue building X amount of local content. My opinion is that if we stay on course and if we maintain our business, tightly we will deliver on our business. So that's what the key thing is that we're delivering on our business goals overall, I think we should be able to ride out this rough patch.”

  • Avinash Kaul on Network18’s news business growth, TRAI tariff order impact & landing page row

    Avinash Kaul on Network18’s news business growth, TRAI tariff order impact & landing page row

    MUMBAI: Propelled by the ad spend on general elections, subscription revenue growth and the strength of its regional network, the news business of Network18 delivered solid numbers in the first quarter. The television news business grew 29 per cent as compared to the corresponding quarter last year, with a rise in news viewership share to 10.1 per cent from 9.3 per cent post TRAI’s new tariff order implementation. The broadcaster witnessed a 48 per cent YoY improvement in subscription revenue and a doubling of the Hindi news ad-revenue. From an EBITDA loss last year, Q1 FY20 saw a jump in profitability to Rs 20 crore. For a deeper insight into the network’s performance, future growth and other issues faced by the news broadcast business, Indiantelevision.com engaged A+ E Networks | TV18 managing director and Network18 CEO broadcast news Avinash Kaul in a freewheeling chat.

    Standalone news business revenue grew 29 per cent. Can you give us some colour on that?

    Primarily, we have been reworking our channels and consolidating the regional and national networks. Our ratings have significantly improved over the last two-three years. All the effect of whatever we have done to propel ratings for in the recent past not only resulted in us being the number one news network, but also came in handy at the time of elections. When you have a large news network in the largest democracy, we were bound to get good traction from advertisers (ad spends during elections). In addition to that, there is obviously the new tariff order (NTO).

    The NTO obviously took away a lot of sheen from what our original plan might have been in its initial stages. It brought in some rough weather for everybody especially for pay channels including us. So there is no hesitation in saying that it did create a lot of rough weather for us initially. But thankfully we were able to surmount most of the challenges and by the end of the quarter we were back on top, but we did take a dip. We went down to 9.3 per cent of the overall channel share from around 10.1 per cent because of NTO transition and decision to stay pay. That call though eventually benefited us because it helped fetch us a 48 per cent growth in subscription revenue.

    Thirdly, we have continuously been on a path of cost-cutting, that’s been an ongoing effort. We integrated our regional and national networks and analysed the synergies and duplication. Those benefits are now starting to play out.

    Which segments have been the key growth drivers within the news business?

    Hindi and regional have been at the forefront of this growth. I am breaking Hindi and regional separately because Hindi grew on the back of the superlative performance of News18 India. Languages come second. English has been fairly muted especially because it also comprises business segment which is not an election mainstay. So, very clearly growth was driven by general news and within that, it was driven by Hindi and regional.

    Have you identified any standout regional language markets?

    Biggest advertising markets are Bengali, Marathi and the Southern states. There are no surprises there. Other markets are relatively small in nature like Assam and Odisha They are not as big as the established markets.

    Have you witnessed an advertising slowdown in the months of June and July?

    Yes if you see, after a high of the election, there has come a slowdown. There was also the World Cup. There is a certain amount of threshold which got built in the month of June, which also continues in July as well. There are no two ways about that. There are economic headwinds. But the festive season is also not too far away. So we are hoping we should see some revival in August which will continue in September and the rest of the year.

    You witnessed a 48 per cent growth in subscription revenues. Will you be able to carry forward this momentum or do you expect some churn going forward?

    If you remember the initial NTO days, there were people who did not have a clue what package to take or not to take. Even the subscriber management system, cable headends and the DTH operators were not ready to deliver that diversity. So, the settlement will take time. People will begin to figure out the prices. An aspect that has emerged through my conversations with most of the industry leaders is NTOs on dual TV homes. With increasing cable bills, they have taken a rational call on channel selection for the second TV. Several other factors like the conclusion of the World Cup, children’s holidays will contribute to the churn.

    Some consumers will make their choice, while others will opt for broadcaster packs or DPO packs. So, I don’t think everything is settled or everything is perfectly fine. The fine-tuning continues. I am expecting this entire fiscal will see some sort of settlement. The percentage has come down, you will not see that kind of volatility. The good part is despite the challenges, it’s a step in the right direction because subscription has got a boost. We are hoping that will continue in the next quarter. Unlike advertising scenario, which is dependent on events and situation of economy, this is more immune to those kinds of activities.

    The growth of business news channels has been fairly muted. How do you intend to deliver change this scenario?

    Business channels are facing a challenge not only for us but as a segment across. There is a certain amount of reinvention required in the entire genre whether it’s from a content or advertiser perspective. Now real-estate is in bad shape, automobile is not that great, banking sector has huge NPAs on its books, IPOs are not that great and general economy is not that great.

    There is a certain amount of cyclical softness that emerges and unfortunately, these cycles are not advertising cycles. These are business cycles. There is a need for a certain amount of introspection, cost control measures while trends like movement to digital and other things are happening. The challenge is to reinvent the product and see how we can make certain offerings to advertisers in the market in order for them to see things in a different light. It could also very well mean that more emphasis on subscription than advertising sales than ever before at least for this sector. So, it depends. For a business model to pivot, it takes a longer time and that’s the journey most of us are in.

    As a network, what do you expect from the remainder of the year?

    We continue to invest and stay invested in content. We have an ambition of not only maintaining our market share (currently around 10.3-10.4 per cent with all channels) but to make sure that we get higher. I would really peg it at 15 per cent by the end of this year. We are the largest player in the segment and by that, we have a certain amount of responsibility on us to make sure we reinvent and grow the genre along with us. That will keep us motivated for this year.

    What is your subscription to advertising revenue ratio?

    Honestly, this will be a better conversation to have at the end of this financial year. This is just the first quarter and it has several factors like cricket and elections influencing it. There is general stress in most English channels. Some of these models will pivot very differently. Several things like the effect of the best-fit plans need to settle down. So it’s early. Personally, I’m very keen to know what that ratio will be at the end of the year. It also has a bearing on all the employees of the sector.

    The ongoing landing page issue has the potential to impact the ecosystem’s dynamics. Your views?

    Either it works for all or works for none, we are okay either way. What we are not okay with is the manual intervention (BARC’s data validation and outlier policy), which benefits some people, not others. If it will completely go away, we have no qualms, we will be the happiest. We do want a level playing field. We do not want somebody getting extra benefits because of X or Y reasons. Primarily that’s what our standpoint is.

    So, your issue is at a systemic level?

    It is a systemic issue. There are channels that launched on the back of these things. Any kind of manual intervention is not good for any system. There is no document to see on what basis this manual intervention is happening. Even the (BARC) technical committee has not issued an advisory to state what the basis of these moderation policies are. We are not comfortable with this arbitrary situation. Why would anybody want to do that? We are not a fly-by-night operator; we want transparency in the system and a level-playing field.

    What has been the impact of the new tariff order on lifestyle and factual entertainment brands?

    The impact of the NTO varies from genre to genre. Both History and FYI are part of Colors value pack. So, they were available wherever Colors was available. Today FYI is the largest lifestyle channel in India and History is a very close second to Discovery. We cannot take away the fact that Discovery is in existence for more than 25 years now and History is eight years old. These things take time to catch up.

    From an advertising front, there are same issues that general English entertainment channels and factual entertainment channels are facing. So, business is not as usual. There is an impact but you cannot attribute it directly to NTO right now because there were elections, IPL and the World Cup. We are hoping for a certain amount of resurgence now. But obviously subscription comes in handy and our cost control measures are always there. So, from a profitability perspective, we are on track.

  • A+ E Networks | TV18 elevates Arun Thapar to president – content & communication

    A+ E Networks | TV18 elevates Arun Thapar to president – content & communication

    MUMBAI: A+E Networks | TV18 has promoted Arun Thapar as President – Content & Communication. In his new role, Thapar will additionally manage Brand Marketing, Digital, and Branded Content of A+E Networks | TV18 along with his current portfolio of Content Strategy Management, Creative and Production for the network.

    Commenting on the development, Avinash Kaul, Managing Director A+ E Networks | TV18 and CEO-Broadcast for Network18, said, “Arun has consistently played the role of a key growth driver for the business. His strong understanding of the genre has ensured that A+E Networks | TV18 got the required traction and also contributes positively towards the growth of factual entertainment and lifestyle genres. His expertise is central to further strengthening and expanding the A+E Networks | TV18 portfolio.”

    Under his stewardship the network has produced best-in-class originals, and broken new ground in factual entertainment, with HISTORY TV18 clocking tens of millions of views online. In the last year, FYI TV18, the network's lifestyle arm, has reigned supreme as No. 1 for over 48 consecutive weeks. Over the years, A+E Networks | TV18 originals have earned more nominations and awards than any other network in the genre.

    Prior to joining A+E Networks | TV18, Thapar was Vice President Programming at Discovery Networks Asia Pacific (South Asia), where he was responsible for overall content and creative, including originals, for the eleven-channel portfolio comprising Discovery, Animal Planet, and TLC, among others.

    His 23 years of experience and expertise covers the entire spectrum of content functions, from commissioning and creation to management, acquisition, localization and on-air delivery, across a range of genres – factual, natural history, lifestyle, animation, kids, and family entertainment as well comedy, satire, live broadcast, and current affairs.

    He is passionate about great storytelling and delivering best-in-class immersive viewing experiences. As an award-winning content leader, his body of work also includes a long list of producer, creator, and executive producer credits for many award-winning originals, made in India.

    In his new role, he will continue to report to Avinash Kaul.

  • Election ads, growth in subscriber revenue propel TV18 growth in Q1 FY20

    Election ads, growth in subscriber revenue propel TV18 growth in Q1 FY20

    MUMBAI: Election advertising and a strong growth in subscription revenue post the implementation of the new tariff order (NTO) has propelled the revenue growth of TV18 in Q1 FY20. The company has witnessed around 10 per cent Y-o-Y revenue growth in the first quarter of FY20.

    TV18 Chairman Adil Zainulbhai said, “Our channel brands have witnessed a strong uptake in the new tariff regime which places the consumer even more at the center of the broadcasting business model. Class-leading value, genre-defining content and a pipe-agnostic approach are the tenets which we believe will continue to propel our portfolio forward.”

    TV18’s Q1 viewership share in news was 10.1 per cent, up from 9.3 per cent post NTO implementation. The company’s subscription income has received a boost with NTO implementation as well. It is still facing some flux in distribution and viewership, which the company expects to taper away in the near term. General news revenues were buoyed by election-related advertising, especially in Hindi but business news revenue growth has continued to face genre pressures due to weak markets.

    The ad-environment has been tepid, led by advertisers paring spends amidst weak markets/macro/regulatory flux, and concentration of advertising around sports. However, news broadcasting benefitted from election-related advertising during the quarter. TV18 expects the environment to pivot as it heads into the festive season.

    The company has seen a sharp turnaround in EBITDA. From an EBITDA loss last year, Q1FY20 has seen a major leap in profitability. This has been driven by election-advertising as well as continued reduction in regional news gestation losses, on operating leverage as well as cost controls.

    TV18’s entertainment Q1 viewership share declined due to major events driving sports viewership but the entertainment revenue rose 5 per cent amidst weakness in overall ad-spends and a sharp reduction in ad-revenue of channels shifted from FTA to Pay.

    In the same quarter, the company launched Colors Gujarati Cinema. It also informed that its regional entertainment channels in Marathi, Gujarati and Kannada movies gained strength in Q1 FY20.

  • Subscription drives Network18; TV18 revenues, EBITDA up

    Subscription drives Network18; TV18 revenues, EBITDA up

    BENGALURU: Network18 Media & Investments (Network18, N18) reported 10.8 pe rcent increase in consolidated operating revenue for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y). TV18 Broadcast (TV18), a publically listed subsidiary of N18, is a major contributor to Network18’s numbers. TV18 reported 9.7 percent y-o-y increase in consolidated operating revenue for Q1 2020 as compared to Q1 2019. Subscription revenue increased 48.3 percent for the quarter under review to Rs 424 crore from Rs 286 crore.

    Company speak

    Network18 says in an earnings release that New Tariff Order (NTO) implementation pains have smoothened as the value-chain adjusts to the new regime, and its subscription income has received a boost. Nevertheless, some flux in distribution and viewership is lingering, which N18 expects to taper away in the near term. As consumers make their pack/channel choices, the company believes that strong content propositions and distinctive brands will continue to gain traction. The company says that its bouquet is well-placed to benefit, through leading channels and improved distribution tie-ups.

    Network18 chairman Adil Zainulbhai said: “Amidst a challenging advertising environment and the implementation of a new tariff regime, we have continued to focus on creating great content for all media. Our regional portfolio continues to grow across both broadcasting and digital, and we believe that the connect our growing brands enjoy with the diverse Indian populace shall stand us in good stead.”

    Speaking as chairman of TV18, Zainulbhai said “Our channel brands have witnessed a strong uptake in the new tariff regime which places the consumer even more at the center of the broadcasting business model. Class-leading value, genre-defining content and a pipe-agnostic approach are the tenets which we believe will continue to propel our portfolio forward.”

    Let us look at the numbers reported by the company

    Network18 operating revenue grew to Rs 1,245 crore in Q1 2020 from Rs 1,124 crore in Q1 2019. Consolidated operating EBIDTA for the quarter under review more than doubled (grew 137 percent) to Rs 46 crore from Rs 19 crore.

    The company says that operating revenues from its News business (TV18 standalone) grew 29 percent y-o-y to Rs 298 crore in Q1 2020 from Rs 232 crore in Q1 2019. The company reported a positive EBIDTA from its News business of Rs 20 crore in Q1 2020 as compared to a loss of Rs 1 crore in the corresponding year ago quarter.

    Revenue from its Entertainment business (Viacom18, AETN and Indiacast) grew 5 percent y-o-y in Q1 2020 to Rs 899 crore from Rs 857 crore in Q1 2019.

    TV18 consolidated revenue for Q1 2020 grew 10 percent to Rs 1,198 crore from Rs 1,088 crore in Q1 2019. Consolidated EBIDTA for Q1 2020 grew 96 percent y-o-y to Rs 77 crore from Rs 39 crore in Q1 2019.

    Network18’s Digital, Print, Others Business and intercompany eliminations (Digital) grew 32 percent to Rs 48 crore from Rs 32 crore. EBIDTA increased to a loss of Rs 128 crore in Q1 2020 from a loss of Rs 112 crore in Q1 2019.

    Network18’s total expenditure increased 10.8 percent y-o-y to Rs 1,308 crore from Rs  1,308 crore from Rs 1,181 crore. The company reported 11 percent higher operating costs for Q1 2020 at Rs 574 crore as compared to Rs 517 crore in Q1 2019. Marketing and distribution expenses during the quarter under review increased 33.3 percent y-o-y to Rs 252 crore from Rs 189 crore. Finance costs in Q1 2020 increased 53.7 percent y-o-y to Rs 63 crore from Rs 41 crore. Other expenses for the quarter under review declined 21.3 percent to Rs 100 crore from Rs 127 crore.

  • TRAI directs DPOs to refrain from placing channels outside the genre

    TRAI directs DPOs to refrain from placing channels outside the genre

    MUMBAI: After receiving complaints from TV18 and TV Today Network against Republic Bharat, the Telecom Regulatory Authority of India (TRAI) has directed all distribution platform operators (DPOs) to refrain from placing channels outside their genres.

    TV18 and TV Today Network had written to TRAI that the newly launched Republic Bharat is being placed outside the Hindi news genre to garner higher viewership.

    TRAI stated, “The authority has received many complaints alleging transmission of television channels on dual LCN or placement of television channels by the distributors of TV channels, out of the genre declared by the broadcaster.”

    The TRAI regulations require every broadcaster to declare the genre of its channels such as ‘devotional’, ‘general entertainment’, ‘infotainment’, ‘kids’, ‘movies’, ‘music’, ‘news and current affairs’, ‘sports’ or ‘miscellaneous’.

    It is also mandatory for the distributor to place channels in the electronic programme guide, in such a way that the television channels of same genre, as declared by the broadcasters, are placed together consecutively and one channel shall appear at one place only. The authority has also said that action will be taken against such distributors who fail to comply with the regulations.

    “Now, therefore, the authority, in exercise of the powers conferred upon it under section 13, read with clause (b) of sub-section (I) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) and in order to protect the interest of service providers and consumers and ensure orderly growth of the sector, hereby directs all distributors of the television channels to ensure that the television channels of same genre, as declared by the broadcasters, are placed together consecutively and one channel shall appear at one place only failing which action shall be taken against such distributors, under the provisions of TRAI Act, 1997,” TRAI concluded.

  • TV18 complains to TRAI about Republic Bharat being placed outside its genre

    TV18 complains to TRAI about Republic Bharat being placed outside its genre

    MUMBAI: TV18 Broadcast has written a letter to the Telecom Regulatory Authority of India (TRAI) against the recently launched Hindi news channel Republic Bharat. The complaint is regarding the channel being placed outside the Hindi news genre to drive up viewership.

    “The action of placing ‘Republic Bharat’ of ARG Outlier Media outside its relevant genre is also a violation of authority’s broadcasting regulation as framed by the Authority (specially , sub-regulations 2 of regulation 18 of the Telecommunication (Broadcasting and cable) Services Interconnection (Addressable Systems) Regulations, 2017) and as such, impermissible,” TV18 said in the complaint.

    It is believed that other competing Hindi news channels have also complained to the TRAI on the use of non-Hindi news genre by Republic Bharat.

    The broadcaster has also provided the names of cable TV platforms that are carrying Republic Bharat on non-Hindi news genres. It has also provided sample photographs as proof. It has requested TRAI to investigate the matter and take appropriate action against all those who are violating the regulations.

    TV18 said that the channel is being placed in other genres to allow it to “illegally garner higher BARC ratings and increase viewership”. It further stated that genres where Republic Bharat is being placed either have much better viewership and ratings when compared with the Hindi news genre or ensure that the channel catches the viewer’s attention and gets sampled in non-Hindi news genre.

    “As such, by placing Republic Bharat in non-Hindi news genres, an unfair and undue advantage is being given to ‘Republic Bharat’ when compared with its competing channels that continue to be listed in correct / Hindi news genre,” TV18 said in its complaint to the TRAI.

    “In view of above, we humbly request Hon. Authority to kindly take cognizance of this complaint and investigate into the matter rather, in terms of applicable laws, take stem action against all those who may be / have been involved in listing of Republic Bharat outside its genre so as to deprecate such malpractices in future,” TV18 said in the letter to TRAI.

    In May 2017, sister channel Republic TV was also accused of being carried in multiple genres (http://www.indiantelevision.com/television/tv-channels/news-broadcasting/republic-tv-trai-nba-and-the-case-of-multiple-lcns-170517) . TRAI took note of this and called out DPOs for not heeding cable TV guidelines. Apparently, several channels resort to this tactic to gain extra viewership, especially those in the news genre.