News Broadcasting
Government mulls USO Fund for Prasar Bharati
NEW DELHI: Private broadcasters and big MSOs in the country might soon be called to lend a helping hand in the financial restructuring of pubcaster Prasar Bharati.
According to one of the options relating to funding of Prasar Bharati, suggested by a government panel, a corpus can be created from contributions from the broadcast and cable industry on the lines of the universal service obligation (USO) fund in the telecom sector.
Five per cent of a private telecom operator’s annual revenues go towards the USO fund, which is used to finance new rural telephony projects identified by the government.
The panel on Prasar Bharati’s financial restructuring has suggested that private broadcasters and MSOs can be asked to contribute between 5-10 per cent of their annual revenues for a USO fund-type corpus, which can be used to support the over 45,000 workforce of the pubcaster.
Prasar Bharati, which manages Doordarshan and All India Radio, is in the middle of a debate over ways to augment its earnings.
This recommendation, along with others in a nearly 300-page report, is being presently studied by a group of ministers (GoM) before the issue is taken to the Union Cabinet for a formal okay.
The GoM met briefly last week, information and broadcasting minister Priya Ranjan Dasmunsi told Indiantelevision.com. He did not give any time frame on taking the Prasar Bharati matter to the Cabinet.
However, industry players observe whether there would be increased accountability of Prasar Bharati if a USO fund is created via private sector players’ contribution to partly fund pubcaster’s activities. More importantly, whether the funds would be properly used.
According to Hindu Business Line, of the Rs 107.53 billion collected by the government from telecom companies in the form of USO fund since its inception in 2002-03, a staggering Rs. 70 billion is yet to be disbursed.
The newspaper quoted the Telecom Regulatory Authority of India as saying that undisbursed amount is estimated to cross Rs 250 billion by 2010 against a total collection of Rs. 375 billion, which means only 48 per cent of the fund is expected to be utilised for extending telephone services in the rural areas. The numbers assume significance even as the digital divide between rural and urban is ever increasing.
Meanwhile, letting the pubcaster tap the capital markets and levying a cess on sale of every TV and radio set in the country are amongst some of the other options suggested by the committee on financial rejig of Prasar Bharati.
Though Prasar Bharati closed FY 2006 with record-breaking revenues of over Rs 12 billion, its expenses are so huge that the government is finding it difficult to bridge the chasm between income and expenditure.
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.
