News Broadcasting
EU court reverses EC decision on approval of Sony BMG deal
MUMBAI: In what has come as a shock to the global music industry, The Court of First Instance of the European Communities annulled a decision made by the European Commission a couple of years ago.
That decision had given the nod to the merger of Japan’s Sony and Germany’s Bertelsmann. The ruling marks the first time that the courts have overturned a commission decision to clear a deal. It could affect other acquisitions in the music space. Warner and EMI are belieevd to be talking to merge.
Media reports indicate that Sony BMG which is the world’s second largest music company has to return to the European Commission within a week to seek new approval. The EC will decide in a month’s time whether to approve the merger while considering current market conditions. The 2004 decision was annulled on the argument that regulators did not show whether a monopolistic situation would be created in the event of the merger or that there wasn’t one at the time of the merger.
In a statement Bertelsmann said, “Today’s judgment does not affect the validity of the Sony BMG joint venture, which has been up and running since August 2004.” If the EC does not aprove the merger things will get tricky.
A suit had been filed by Impala, the Independent Music Publishers and Labels Association, in December 2004 due to concern over dominance of the market by firms like Sony BMG, a newly created joint venture.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
