News Broadcasting
Govt. mulls revenue share for 2nd round of FM licences
NEW DELHI: The government is contemplating going in for revenue sharing with the licence holders of the second round of licences for FM radio.
The process of second round of licences is likely to begin post July by when the government expects the first round of licencees would have started their operations in various part of the country.
According to a senior information and broadcasting ministry official, the second round of FM radio licences would be given out after the process is initiated post July, by when other aspects of the licensing would also be finalised.
The official also indicated that if the government goes in for revenue sharing during the second round of licencing, a migration package, a la telecom, would be devised for the existing players too.
Licence holders, including MBPL-Star, Radio Mirchi from the Times group and Radio Today from the India Today Group are expected to start their operation in Delhi soon
In recent times the private radio FM players have been grumbling that the losses have been increasing, owing to high licence fee (given out after an open auction) and low revenues.
Radio City chief Sumantra Dutta had told indiantelevision.com several months back that if the losses keep mounting then its associate, MBPL, may have to give up the licence in cities like Lucknow, Prime Minister’s Vajpayee’s consituency. Radio City had paid Rs 750 million towards the license fee and the station doesn’t make more than Rs 1 million per month.
Meanwhile, the private FM radio stations submitted their balance sheets to India’s information & broadcasting ministry on 16 April and, according to government sources, the industry has reported a combined loss of Rs 1.2 billion against revenues of Rs 0.5 million.
The industry had made a presentation to the I&B minister Ravi Shankar Prasad in the first week of this month. In their presentation, the industry had advocated for shifting towards a revenue sharing model and relaxation on license fee payment. The industry had claimed that the revenues are not adequate and hence, the high license fee is not justified. The ministry had asked them to present their financial reports in two weeks time to support their cause.
The FM players are required to submit the license fee for the second year by the 30 April. If the ministry fails to come to a mutual agreement with the private FM industry on time, the industry had pointed out that some of the smaller players may have to shut down operations very soon.
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.
